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Canada Eyes Controlled Population Growth as Immigration System Stabilizes

OTTAWA — With Canada’s immigration system now under firm control, Prime Minister Mark Carney signaled plans to carefully scale up population growth to drive economic expansion, according to a New York Times interview. The shift follows earlier sharp cutbacks triggered by housing shortages, a slowing labor market, and healthcare strains.


Under the revised plan, annual permanent residency targets—previously set at 500,000—have been adjusted to 385,000 in 2026, and 370,000 for both 2027 and 2028. Strict caps also remain on temporary residents and international students, aiming to reduce their share of the population from 6.7% to 5% by late 2027.

The move faces pushback from opposition Conservative MP Michelle Rempel Garner and economic policy experts at the C.D. Howe Institute, who argue targets should be reduced further. Economists emphasize that businesses should address labor shortages by improving wages and working conditions rather than relying solely on immigration.

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