Canada prime minister announces the reduction of Permanent Residency Application Slots in 2025 to tackle Housing and Healthcare Shortages

Prime Minister Justin Trudeau announced a shift in Canada’s immigration strategy, citing an imbalance between addressing labor needs and managing population growth. The move aims to alleviate pressure on the housing sector.

Canada will reduce its immigration numbers for the next three years. In 2025, the country will welcome 395,000 new permanent residents, down from 485,000 in 2024.

The numbers will further decrease to 380,000 in 2026 and 365,000 in 2027, contrary to previous plans to bring in 500,000 new residents in those years.

The decision reflects changing public opinion, as immigration’s impact on housing affordability has become a concern. Trudeau acknowledged, “We didn’t get the balance quite right” in response to the post-pandemic labor shortage.

Economists are hopeful this policy reversal will ease housing pressure, while industry groups worry about potential labor shortages. Migrant advocates have expressed concerns about the impact on immigration.

This adjustment marks Canada’s first multi-year reduction in immigration levels since 2018, seeking to strike a better balance between economic needs and housing affordability.