Canadian Prime Minister Justin Trudeau on Sunday acknowledged that his government made "mistakes" in immigration policy, leading to exploitation by "bad actors" like “fake colleges” and big corporations for personal gain. This admission comes as Trudeau faces mounting public criticism amid a declining Liberal Party popularity ahead of the 2025 general election.
In a video posted on his YouTube channel, Trudeau reflected on the pressures from Canada’s fast-growing population over the last two years, describing the system's vulnerability. "Increasingly, bad actors like fake colleges and large corporations have been exploiting our immigration system for their own interests," he said. “We made some mistakes and that’s why we are taking this big turn,” he admitted, justifying his government's decision to reduce the number of immigrants coming to Canada over the next three years.
Canada’s new immigration targets
Immigration Minister Marc Miller recently outlined Canada’s revised immigration strategy, revealing that Canada will admit about 395,000 permanent residents in 2025 — a 20 per cent reduction from the anticipated 485,000 arrivals this year. This shift also extends to temporary immigrants, including international students and foreign workers. Their numbers are set to drop to approximately 446,000 in 2025 and 2026, down from about 800,000 this year.
By 2027, Canada will only accept 17,400 new non-permanent residents, according to the updated policy. As part of this shift, Canada has also discontinued its popular fast-track study visa programme, known as the Student Direct Stream (SDS), impacting thousands of international students, including many from India, Canada’s largest source of foreign students.
Canada’s immigration policy post-pandemic
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Reflecting on post-pandemic recovery, Trudeau explained that Canada’s economy “roared back” rapidly, leading to an urgent demand for workers amidst a severe labour shortage. "Temporary foreign workers became such a significant part of our workforce... So, we brought in more workers," he said, emphasising that this approach initially fuelled economic growth and helped avoid a recession.
However, he admitted the approach had drawbacks, with some players “gaming the system” to make profits. “We have seen too many large corporations doing this. Too many colleges and universities used international students to raise their bottom line because they could charge these students tens of thousands of dollars more for the same degree,” Trudeau said.
Addressing Canada’s housing crisis and cost of living
Trudeau defended the government’s recent decision to cut immigration as a necessary measure to address Canada’s housing shortage and cost-of-living issues. "The goal is to help stabilise population growth while housing stocks catch up, and then to consider gradually increasing immigration rates once again," he said, adding that the pause would allow communities time to “catch up with things like our plan to build more homes.”
The government intends to prioritise permanent residents with specific skills needed in sectors like healthcare and construction, to align immigration targets with the nation’s workforce needs.
In 2024, Canada implemented several changes to its immigration policies:
Reduction in permanent resident admissions: The government announced a 21% decrease in the number of permanent residents for the upcoming years. The target is set to 395,000 new arrivals in 2025, down from the previously planned 500,000. Further reductions are planned, with targets of 380,000 in 2026 and 365,000 in 2027. This decision aims to balance labour market needs with the country's infrastructure capacity, addressing concerns over housing shortages and strained public services.
Cap on temporary residents: For the first time, Canada plans to cap the number of temporary residents, including international students and foreign workers. The goal is to reduce their proportion from 6.2% to 5% of the total population over the next three years. This measure responds to pressures on housing and essential services attributed to the influx of temporary residents.
Revised visitor visa guidelines: In November 2024, new guidelines were introduced for issuing single-entry and multiple-entry visitor visas. These changes grant immigration officers greater discretion in determining the type of visa issued, aiming to streamline the process and enhance security measures.
Adjustments to international student policies: The government imposed a cap on international student study permits, aiming to reduce the volume by approximately 300,000 permits over the next three years. Additionally, new regulations effective from November 2024 restrict post-graduate work permit eligibility to students enrolled in programmes related to occupations facing long-term shortages in Canada. These measures seek to prevent misuse of the international education system and address socioeconomic pressures.
What lies ahead for immigrants in Canada?
Under the new guidelines, temporary residents nearing visa expiration may consider the asylum system. However, Trudeau clarified that unsuccessful asylum claims would lead to deportation: "Some temporary residents may turn to our asylum system when their visa expires... Those claims will be analysed and processed, and if their claim fails, they’ll be sent home.”
Tensions in India-Canada relations
This shift in immigration policy unfolds against a backdrop of strained India-Canada relations. Allegations of India’s involvement in the killing of Hardeep Singh Nijjar, a Canadian citizen labelled a terrorist by India, have heightened tensions. India dismissed Trudeau’s allegations as “absurd,” resulting in the expulsion of Canadian diplomats and the recall of India’s High Commissioner in Canada, Sanjay Kumar Verma. India insists that the primary issue lies in Canada’s alleged support of pro-Khalistani elements, which continue to operate from Canadian soil with impunity.