PM Trudeau Drastically Cuts Immigration Targets as Canada Faces Housing Crisis

In a significant policy shift, Prime Minister Justin Trudeau announced a reduction in Canada’s immigration targets, citing the need to address the country’s housing affordability crisis. The decision follows widespread criticism of the federal government’s previous increases to immigration levels, which many argue have exacerbated the growing housing shortage.

During a press conference, Trudeau revealed that the immigration target for 2024 will be reduced to 395,000 new permanent residents, a sharp drop from the previous target of 500,000 set for both 2025 and 2026. Further reductions will follow, with targets of 380,000 in 2026 and 365,000 in 2027. This marked decrease is aimed at addressing the pressures on the housing market and overall affordability in the country.

“Immigration has been essential to our economic success,” Trudeau said, adding, “But we recognize that we didn’t strike the right balance in recent years, especially when it comes to housing availability.” He acknowledged the government’s earlier missteps in handling post-pandemic immigration levels, which had surged to meet economic demands.

This change in direction also comes alongside a broader federal initiative to limit the number of temporary residents in Canada. Currently, temporary residents, including those on work or study permits, make up 7.2% of the population, but the government plans to reduce that figure to 5% by 2027. This will result in a significant decrease in non-permanent residents, with estimates suggesting a reduction of 445,901 by 2025 and another 445,662 by 2026, with only a modest increase of 17,439 in 2027.

The rapid growth of both permanent and temporary residents has been identified as a major factor in Canada’s escalating housing crisis. Cities like Toronto and Vancouver have faced a severe shortage of affordable housing, with demand far outpacing supply. The Trudeau government has faced mounting pressure from critics who argue that the influx of immigrants has worsened the housing crunch, making home ownership unattainable for many Canadians.

Alongside immigration cuts, Trudeau also addressed issues surrounding the Temporary Foreign Worker Program (TFWP), which has faced increased scrutiny. Earlier this year, the federal government suspended the processing of Labour Market Impact Assessments (LMIAs) for low-wage positions in regions with unemployment rates above 6%, including Montreal. This move aimed to curb the exploitation of foreign workers in areas with sufficient domestic labor, a problem Trudeau strongly condemned during his announcement.

“Too many businesses have relied on cheap foreign labor at the expense of Canadian workers,” Trudeau said, emphasizing that reforms to the TFWP would ensure fairer labor practices and better protections for both foreign and Canadian workers.

This year’s immigration plan also introduces, for the first time, specific targets for temporary residents, signaling the government’s effort to better manage both permanent and non-permanent immigration streams.

The federal government’s recalibration of immigration targets is poised to have far-reaching effects, not only on Canada’s housing market but also on labor supply, education, and economic growth. As the country continues to grapple with post-pandemic recovery, the Trudeau administration is clearly aiming to balance population growth with sustainable infrastructure and affordability.

With these changes, Canada’s immigration landscape is set to evolve dramatically over the next few years, with the hope of alleviating pressures on housing and ensuring a more sustainable approach to population growth. However, only time will tell if these reductions will be enough to address the complex housing and affordability issues facing Canadians.