Published by Skylam Immigration | July 2025
Canada’s immigration landscape is experiencing its most significant transformation in recent years. Immigration, Refugees and Citizenship Canada (IRCC) has introduced sweeping policy changes throughout 2025, with major updates announced in June that will reshape the Canadian immigration system. At Skylam Immigration, we understand that navigating these changes can be overwhelming. This comprehensive guide breaks down the key policy updates and their implications for prospective immigrants, temporary residents, and employers.
Executive Summary: What’s Changed
The June 2025 IRCC Departmental Plan represents a strategic shift toward sustainable immigration levels that balance economic needs with community capacity. Key changes include reduced permanent resident targets, stricter temporary resident caps, Express Entry reforms, and enhanced digital services. These modifications affect virtually every aspect of Canada’s immigration system.
Major Policy Changes Overview
1. Reduced Immigration Targets and New Caps
Permanent Resident Admissions The 2025-2027 Immigration Levels Plan has cut permanent resident admissions by approximately 20% compared to previous targets. For the first time, IRCC has established specific targets for temporary residents, introducing a holistic approach to managed migration.
Key Statistics:
- More than 40% of permanent resident admissions in 2025 will come from individuals already in Canada as temporary residents
- Economic class immigration will account for approximately 62% of total admissions by 2027
- French-speaking permanent resident targets outside Quebec increased to 8.5% in 2025, 9.5% in 2026, and 10% in 2027
Temporary Resident Caps IRCC aims to reduce temporary resident volumes to 5% of Canada’s population by the end of 2026. This represents a significant departure from previous policies and reflects growing concerns about infrastructure capacity.
2. Provincial Nominee Program (PNP) Adjustments
The federal government has implemented a 50% reduction in PNP allocations for 2025. While some provinces like Newfoundland and Labrador and New Brunswick successfully negotiated additional nomination spaces, many provinces have:
- Temporarily paused or permanently suspended certain streams
- Introduced restrictions on application numbers
- Narrowed eligibility criteria for various programs
- Excluded certain occupations from consideration
Impact for Applicants: Increased competition for PNP nominations and more stringent eligibility requirements across most provincial programs.
3. Express Entry System Overhaul
Starting in spring 2025, IRCC has implemented major changes to the Express Entry system:
Removal of Job Offer Points The most significant change is the elimination of points awarded for arranged employment (job offers) in the Comprehensive Ranking System (CRS). This change aims to:
- Reduce fraud in the system
- Create a more merit-based selection process
- Focus on candidates with genuine skills and experience
Enhanced Targeted Draws IRCC will prioritize candidates with:
- In-demand skills (healthcare, trades, technology)
- French language proficiency
- Canadian work experience
- Educational credentials in priority sectors
What This Means: Candidates who previously relied on job offers to boost their CRS scores must now focus on improving other factors such as language proficiency, education credentials, and gaining Canadian work experience.
Critical Updates to Maintained Status Rules
The May 28, 2025 Policy Change
One of the most impactful changes affects temporary residents’ ability to maintain their status while applications are processed. IRCC has significantly tightened rules around “maintained status” (formerly implied status).
Previous System: Temporary residents could submit multiple applications and maintain their status throughout the processing period, even if initial applications were incomplete or strategic “placeholder” submissions.
New Rules (Effective May 28, 2025):
- If a first application is refused or returned as incomplete after the original status expires, maintained status is immediately lost
- Subsequent applications filed after status expiry will be automatically refused
- Workers and students must stop their authorized activities immediately upon losing maintained status
Critical Implications: This change prevents the common practice of submitting “dummy applications” to extend stay while preparing complete applications. Temporary residents must now ensure their initial applications are complete and accurate before their current status expires.
Work Permit Flexibility Enhancement
Conversely, IRCC has introduced greater flexibility for workers on closed work permits. Effective May 27, 2025, a new temporary public policy allows foreign nationals with closed work permits to:
- Change employers while work permit applications are pending
- Transition to different occupations with proper authorization
- Maintain financial stability during job transitions
Eligibility Requirements:
- Valid temporary resident status in Canada
- Submitted work permit application
- Authorization to work when application was submitted
- Specific job offer from new employer
International Student Program Changes
Study Permit Caps Continue
IRCC maintains its cap on study permit applications, targeting 437,000 study permits for 2025 – a 10% decrease from the 2024 cap. This policy includes:
Provincial Attestation Letters (PAL) Most study permit applications submitted since January 22, 2024, require PAL from provincial governments, adding an additional layer of oversight.
Post-Graduation Work Permit (PGWP) Restrictions Eligibility requirements for PGWPs have been tightened to better align with immigration goals and labor market needs.
Spousal Open Work Permit (SOWP) Limitations New restrictions limit SOWP eligibility to spouses of:
- Master’s program students (16+ months duration)
- Doctoral program students
- Students in select professional programs (nursing, engineering, law)
New Programs and Pathways
Economic Mobility Pathways Pilot (EMPP) Becomes Permanent
By the end of 2025, IRCC will make the Economic Mobility Pathways Pilot a permanent program, creating new opportunities for skilled refugees to obtain permanent residence.
Enhanced Francophone Immigration
The Welcoming Francophone Communities Initiative (WFC) will be fully operationalized over 2025-2026, supporting the goal of increasing French-speaking immigration outside Quebec.
Digital Services Modernization
IRCC is implementing a new online account system for all immigration clients, designed to enhance:
- Application tracking transparency
- Service delivery efficiency
- User experience quality
Labor Market Impact Assessment (LMIA) Changes
Several changes affect the Temporary Foreign Worker Program:
Processing Moratorium IRCC has imposed restrictions on processing low-wage LMIAs in census metropolitan areas with unemployment rates of 6% or higher.
Enhanced Requirements Employers face stricter requirements to demonstrate genuine labor market needs and fair treatment of foreign workers.
Strategic Implications and Future Outlook
Population Management Strategy
The 2025-2027 Immigration Levels Plan projects:
- Marginal population decline of 0.2% in both 2025 and 2026
- Return to 0.8% population growth in 2027
- Reduction of housing supply gap by approximately 670,000 units by end of 2027
Economic Focus
IRCC’s emphasis on transitioning temporary workers already in Canada to permanent residence reflects research showing that newcomers with Canadian experience achieve better long-term success.
What These Changes Mean for Different Stakeholders
For Prospective Permanent Residents
Opportunities:
- Greater emphasis on Canadian experience benefits those already in Canada
- Targeted draws may favor specific skill sets
- French speakers have enhanced pathways
Challenges:
- Reduced overall targets increase competition
- Elimination of job offer points requires strategy adjustment
- Stricter maintained status rules demand careful planning
For Temporary Foreign Workers
Opportunities:
- Enhanced job mobility for those on closed work permits
- Priority pathways for those in in-demand occupations
- Extended work permit policies for PNP candidates
Challenges:
- Stricter LMIA requirements
- Reduced temporary resident targets
- More complex maintained status rules
For International Students
Opportunities:
- Clear pathways for those in priority programs
- Enhanced integration focus for Canadian experience
Challenges:
- Reduced study permit quotas
- Stricter PGWP eligibility
- Limited SOWP options for spouses
For Employers
Opportunities:
- More streamlined processes for genuine labor needs
- Priority access to workers in specific sectors
Challenges:
- Stricter LMIA requirements
- Reduced temporary worker availability
- Enhanced compliance obligations
Expert Recommendations from Skylam Immigration
For Current Temporary Residents
- Plan Applications Carefully: With stricter maintained status rules, ensure all applications are complete and submitted well before current status expires
- Focus on Canadian Experience: Leverage time in Canada to build credentials, language skills, and professional networks
- Consider Provincial Programs: Despite reduced allocations, PNP remains a viable pathway for many candidates
For Prospective Immigrants
- Enhance Language Skills: With job offer points eliminated, language proficiency becomes even more critical
- Target In-Demand Occupations: Focus on healthcare, trades, and technology sectors prioritized by IRCC
- Consider Francophone Advantages: French language skills provide significant advantages under new policies
For Employers
- Plan Workforce Needs: Anticipate longer processing times and reduced worker availability
- Explore Canadian Talent: Enhanced focus on domestic workforce development
- Ensure Compliance: Stay current with evolving LMIA and employment requirements
Conclusion
The June 2025 IRCC policy changes represent the most comprehensive immigration reform in recent years. While these changes present challenges, they also create new opportunities for those who understand and adapt to the evolving landscape.
At Skylam Immigration, we remain committed to helping our clients navigate these complex changes successfully. Our experienced team stays current with all policy developments and provides personalized strategies to achieve your immigration goals.
The key to success in this new environment is early preparation, complete understanding of requirements, and strategic planning. Whether you’re seeking permanent residence, extending temporary status, or exploring new pathways, professional guidance is more important than ever.
For personalized assistance with your immigration journey under the new policy framework, contact Skylam Immigration today. Our expert consultants are ready to help you understand how these changes affect your specific situation and develop a strategy for success.
Disclaimer: Immigration policies and requirements are subject to change. This blog post is based on information available as of July 2025. Always consult with qualified immigration professionals and verify current requirements with IRCC before making application decisions.
