Canadian Prime Minister Justin Trudeau is poised to shift the country’s immigration policy, which has welcomed newcomers for over a decade. Amid growing concerns over housing shortages and public service strains, the government is planning to reduce the number of new immigrants.

Officials have indicated that Canada plans to lower its target for accepting permanent residents in the upcoming year to approximately 395,000, marking a substantial 21% cut from last year’s goal of 500,000. The targets for subsequent years, 2025 and 2027, are also expected to drop further to 380,000 and 365,000 respectively. Immigration Minister Marc Miller is scheduled to present the final figures to Parliament on Thursday.

The acceptance of permanent residents is a critical component of Canada’s immigration system, which focuses on attracting young, educated workers to address an aging labor market. However, the dramatic reduction in the number of new permanent residents back to pre-pandemic levels signifies a notable shift in the government’s stance on immigration.

Following the relaxation of travel restrictions in 2022, Canada experienced an unprecedented population growth surge fueled by an influx of immigrants. This spike led to significant challenges, including housing shortages, rising rental costs, and increased pressure on public services, alongside a rising unemployment rate.

It’s important to note, though, that permanent residents are not the primary group of newcomers in recent years. Instead, temporary residents—those on student or work visas—have been driving immigration trends. Trudeau and Miller are also expected to introduce new limits on temporary immigration.

The Trudeau government has set a goal to significantly reduce the number of temporary residents over the next three years, including capping the number of international students and limiting the intake of foreign workers. Trudeau recently announced on X platform, “We will implement stricter rules requiring businesses to demonstrate why they cannot prioritize hiring Canadian workers.”