Why Canada’s Immigration Levels Plan Favours Temporary Visa Holders Under a Two-Stage Process

On This Page You Will Find

• How the two stage immigration pathway works
• Why Canada prioritises temporary residents for permanent residence
• Details of one-time transition initiatives for workers and protected persons
• The role of the Canadian Experience Class and PNPs
• Key targets from the 2026–2028 Immigration Levels Plan
• Frequently asked questions

Canada’s 2026–2028 Immigration Levels Plan sets a clear direction for how people already living in the country on temporary status will play a central role in Canada’s future immigration intake. Through a two stage immigration model – temporary residence followed by permanent residence – the government aims to stabilise the temporary population, support labour market needs, and transition skilled individuals already contributing to the economy.

This approach favours a limited number of international students, temporary foreign workers, and other temporary residents who have Canadian experience and established roots. It also includes major one-time measures to transition certain groups more quickly to permanent residence with conditions.

What Is the Two Stage Immigration Process?

Canada’s two stage model favours certain individuals by enabling them to arrive in Canada first as temporary residents – usually as workers or students – and later apply for permanent residence through federal or provincial immigration programs.  There is no certainty however when applicants on temporary visas can transition to permanent resident status.

The first stage provides Canadian work or study experience. The second stage recognises that experience through programs such as the Canadian Experience Class (CEC), Provincial Nominee Programs (PNPs), or category-based Express Entry draws.

This system reduces risk for employers and governments because candidates have already demonstrated their ability to integrate, work, pay taxes, and settle successfully in Canada.  However the number of candidates who can transition to permanent residency is limited.

Why Temporary Residents Are Favoured in Canada’s 2026–2028 Plan

They Already Have Canadian Skills and Experience

IRCC’s plan states that permanent resident targets were designed in tandem with temporary resident reductions, with a strong focus on transitioning those already in Canada. People with Canadian work or study experience tend to integrate faster, meet labour market needs immediately, and contribute economically from day one.

They Help Maintain Sustainable Immigration Levels

Canada aims to reduce the temporary population to less than five percent of the total population by 2027. To achieve this, IRCC is shifting from heavy reliance on temporary workers and students towards permanent residence for individuals already in the country.

Strong Alignment with Economic Needs

The 2026–2028 plan increases Federal High Skilled and PNP admissions. These programs often reward Canadian work experience, job offers, and provincial labour market demand – all areas where temporary residents already have advantages.

Faster Integration and Reduced System Pressure

By transitioning existing temporary residents rather than bringing in new arrivals, Canada reduces housing, settlement, and processing pressures while still meeting labour market needs.

One-Time Initiatives That Benefit In-Canada Temporary Residents

Transitioning 115,000 Protected Persons

Over two years, Canada will grant permanent residence to approximately 115,000 protected persons already living in the country. Although protected persons are not temporary residents, this initiative supports a broader shift toward stabilising populations already inside Canada.

Accelerating Permanent Residence for 33,000 Temporary Workers

In 2026 and 2027, Canada will transition up to 33,000 temporary foreign workers to permanent residence. These are individuals who:

• Have strong roots in their communities
• Are paying taxes and contributing to local economies
• Have proven in-Canada work experience

This measure recognises workers who support priority sectors, including agriculture, hospitality, transportation, and care services.

The Role of the Canadian Experience Class (CEC)

IRCC continues to favour candidates with Canadian work experience. The CEC remains one of the most efficient pathways to permanent residence because:

• It does not require proof of settlement funds
• Candidates already meet language and work requirements
• Processing is typically faster
• Integration is proven through past experience

Category-based selections within Express Entry further strengthen this preference, as IRCC can target occupations associated with former temporary residents.

Why Provincial Nominee Programs also Favour In-Canada Candidates

PNPs represent one of the largest economic streams in the plan, reaching up to 92,500 admissions annually for permanent admissions, over the next three years. Provinces consistently prioritise applicants who:

• Studied or worked in the province
• Hold a provincial job offer
• Have local ties and community connections

These conditions overwhelmingly favour temporary residents already in Canada.

Immigration Targets Reinforce the Two Stage Model

• Temporary arrivals are set to fall from 385,000 in 2026 to 370,000 in 2027 and 2028.
• Permanent residence admissions will stabilize at 380,000 per year.
• Economic immigration will rise to 64% of all admissions by 2027 and 2028.
• Federal High Skilled and PNP categories will see increased allocations.

Together, these metrics show that Canada is slowing inflows of new temporary residents while transitioning existing workers and students to permanent residence.  

The Two Stage Immigration Process

Canada’s two stage immigration model involves two clear phases. This structure allows certain individuals to build Canadian experience first and then transition to permanent residence once they have proven their ability to integrate.

Step 1: Temporary Status

In the first step, individuals arrive in Canada with temporary status that allows them to live, work, or study. Common pathways include:

• Work permits under the Temporary Foreign Worker Program (TFWP) – This program helps fill labour shortages in sectors such as agriculture, construction, manufacturing, and food processing. It is employer-driven and requires a Labour Market Impact Assessment.
• Work permits under the International Mobility Program (IMP) – This program focuses on broader economic and cultural benefits. It includes Post-Graduation Work Permits, intra-company transfers, free trade agreement work permits, and other LMIA-exempt categories.
• Study permits – International students can study at a Designated Learning Institution and gain part-time work experience during their studies and full-time experience during scheduled breaks. Many later qualify for a Post-Graduation Work Permit.
• Visitor status – Though less common for future immigrants, some individuals begin their journey by exploring Canada or meeting potential employers.

This first stage allows newcomers to gain Canadian experience, build networks, and demonstrate their ability to contribute to the labour market.

Step 2: Permanent Residence

Once temporary residents gain Canadian work experience, complete studies, or meet specific criteria, a certain limited number may transition to permanent residence through several pathways:

• Express Entry – A points-based system that ranks candidates on age, education, language skills, work history, and adaptability. It includes the Federal Skilled Worker Program, Federal Skilled Trades Program, and the Canadian Experience Class.
• Provincial Nominee Programs (PNPs) – Provinces and territories can nominate individuals with skills needed in their local labour markets. Many PNP streams prioritise candidates already living, studying, or working in the province.
• Canadian Experience Class (CEC) – This stream is designed specifically for temporary workers and international graduates with Canadian work experience. These candidates often have an advantage due to proven integration.
• Family sponsorship – Canadian citizens and permanent residents can sponsor spouses, partners, dependent children, and qualifying parents or grandparents.

This two stage pathway benefits Canada because individuals with Canadian work or study experience integrate more quickly, have higher employment rates, and contribute more effectively to the economy than those applying directly from overseas. But not all temporary residence visa holders will be able to transition to permanent residence.  In fact, less than 3% of international students will be able to achieve permanent residence.

Long-Term Strategy

For the past number of years, Canada’s immigration system has clearly evolved under a two stage model that rewards those who arrive first as temporary residents. With strong emphasis on Canadian work experience, provincial selection, and targeted one-time transition measures, the 2026–2028 Immigration Levels Plan places a certain limited number of temporary residents at the centre of Canada’s long-term immigration and labour market strategy.

Applicants intending to ultimately immigrate to Canada on a permanent basis should be cautious about the overly optimistic assurances conveyed by a third party professional on the likelihood of this outcome.

Frequently Asked Questions