LABOUR MARKET AND NEWCOMER TRENDS
LABOUR MARKET AND NEWCOMER TRENDS By: Newcomer Support Canada | Wednesday, January 21, 2026 Canada has a long-standing history of immigration and continues to welcome qualified applicants and support those fleeing conflict. The Immigration Levels Plan proposed by the Immigration, Refugees and Citizenship Canada (IRCC) may allow the federal government to focus on core responsibilities towards a prosperous Canada but it does not change the fact that Canada continues to be a destination of choice. Apart from many newcomers who have arrived prior to the change in the immigration rules, Canada’s labour market has also revealed the lack of job opportunities. Immigration targets are focused on attracting skilled workers and there is high demand in industries such as Environment/Green jobs, Healthcare, Construction, and Technology. The labour market forecast for Canada is predicted to have a mix of opportunities and challenges, and Bank of Canada has projected economic growth to rise in 2025 and 2026. Keeping the economic outlook of Canada out, newcomers can expect the labour market conditions to steadily improve. The concern over skills and fair pay shall remain same as the labour market is competitive and the focus has been on non-monetary benefits and flexible work arrangements as opposed to higher wage. For the job seeker, it means to be resilient with their job search and focus on upskilling and reskilling. Contrary to the labour market, the buzz since October 2024 has been Government of Canada’s decision to align immigration levels with sustainable growth by prioritizing economic immigration. It was announced last year that Canada needs the immigration programs to align with the labour market, and will attract and retain skilled workers. However, the challenges with infrastructure and housing market in Canada has led to the new rules. What does this mean for newcomers? It means the number of newcomer admissions for permanent residency will be reduced and the proposed target number was 395,000. However, according to statistics, this number is likely to further reduce in 2026 and 2027 to 380,000 and 365,000 respectively. There is also a cap on the number of temporary residents (5% of the population), which affects the foreign workers and international students as the restrictive criteria for entry will prevent frauds. According to statistics, the number of temporary residents will also reduce to 673,650 in 2025; 516,600 in 2026, and 543, 600 in 2027 leading to more competition as a result of stricter rules. These were just some of the major changes in the new IRCC’s immigration policy because other changes include new pilot programs targeting rural communities, and category-based express entry focusing on the French-speaking applicants. Permanent Residents and Canadian Citizens can expect to see a limitation of Parents and Grandparents program, changes to the rules for second-generation citizenship, streamlining the immigration process, and strengthening borders. With all the changes happening, in terms of the labour market alone, Canada has already begun prioritizing those applicants who are already in Canada. For those planning to immigrate to Canada the tide has shifted and the focus is on in-demand jobs related to healthcare professionals, skilled trade workers in construction and manufacturing sectors, IT professionals, and French Proficiency. For best practice and to stay updated with any changes to immigration policies, the IRCC’s official website. Tags: Canada Immigration 2025, Immigration Level Plans, Canada 2025-2027 Immigration Strategy, IRCC Immigration Targets, Canada Immigration Rule Change.
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