Summary of Major Changes in Canada’s 2026 Immigration Policy Affecting International Students and Temporary Foreign Workers: Quota, PR, PGWP, TFWP.

In recent years, Canada has continuously adjusted its immigration policies to balance domestic labor needs, manage the temporary resident population, and ensure a more sustainable immigration system. Entering 2026, the federal government is set to introduce a series of significant changes directly affecting international students and&nbsp;temporary foreign workers (TFWs).These adjustments are considered some of the most significant shifts in Canada’s immigration policy in recent decades. The article below provides a clear summary and explanation to help you understand how these changes may impact your study and work plans in Canada.<h2>Changes for Temporary Foreign Workers (TFWs)</h2><h3>Accelerating the Path from Temporary Resident to Permanent Resident (TR → PR)</h3>From 2026 to 2028, Canada plans to accelerate the transition from Temporary Resident to Permanent Resident for up to 33,000 temporary workers.The government’s goal is to retain workers who have demonstrated the ability to adapt to Canada’s labor market, contribute to taxes, and maintain strong community ties. According to current announcements, priorities will focus on:<ul><li>Workers employed in sectors with severe labor shortages </li><li>Those with Canadian work experience </li><li>Individuals who have well integrated into their local communities</li></ul>In 2021, IRCC launched a limited-time TR → PR program, which reached its cap on the very first day.Over the past year, IRCC has increasingly prioritized inviting candidates with Canadian work experience to apply for PR.The detailed criteria have not yet been announced; however, this is a positive signal for those who are currently working in Canada and wish to stay long-term.<h3>Tightening the Eligibility Criteria of the TFWP</h3>In September 2025, Prime Minister Mark Carney outlined a new direction for the Temporary Foreign Worker Program (TFWP), emphasizing that the program will:“Focus on strategic sectors and regions that truly face labor shortages.”Over the past year, the government has&nbsp;paused the processing of LMIAs in regions with&nbsp;an unemployment rate of 6% or higher. Since an LMIA is required to apply for a TFWP work permit, this pause has prevented many employers from hiring foreign workers.In addition, according to the 2026–2028 Immigration Levels Plan, the number of people expected to enter Canada under the TFWP will be significantly reduced:&nbsp;from 82,000 down to 60,000 in 2026.This indicates that the eligibility criteria for LMIA and TFWP work permits are likely to be tightened even further, especially in non-priority sectors.<h3>More sector-specific PR and work permit pathways</h3>Canada continues to expand sector-specific immigration programs to meet labor market needs, particularly in high-demand fields. In 2026, several of the following programs are expected to be launched or implemented:• PR pathway for H1-B visa holdersAimed at attracting talent in fields such as technology, healthcare, research, and advanced industries. This targets highly skilled workers with work experience in the U.S.• PR for undocumented construction workersCanada plans to grant PR to up to 6,000 undocumented construction workers currently working in the country. This reflects the high demand for labor in the construction sector.• Sector-specific work permit and PR for agriculture &amp; seafood processingIRCC is developing a new immigration stream for these workers, allowing them to obtain a work permit and the possibility to transition to PR within their sector.• Reopening the Home Care Worker program in 2026This program targets in-home care workers, one of the most in-demand labor sectors in Canada.Overall, workers who&nbsp;are already employed in Canada will have greater opportunities to transition to permanent residency, as most programs prioritize those with Canadian work experience.<h2>Changes for International Students</h2><h3>Significant Reduction in Study Permit Quotas</h3>Over the past two years, Canada has implemented a cap on the number of study permit applications processed. Moving into 2026, the federal government plans to tighten these limits even further.Under <a href="https://loaportal.com/en/news/canada-plans-to-cut-study-permits-by-more-than-50-by-2026">the new Immigration Plan</a>, the number of new international students allowed to enter Canada in 2026 will be significantly reduced:<ul><li>From 305,900 down to 155,000 - a&nbsp;50% decrease.</li></ul>The 2026 study permit cap is expected to be announced in&nbsp;January 2026, and it is likely to be reduced in line with the number of students allowed to enter Canada.However, it is important to note that Canada did not meet its international student target in 2025, so the competition may not be as intense as anticipated.<h3>Exemption from Study Permit Quota for Master’s and PhD Students</h3>Starting from January 1, 2026, graduate students, including:<ul><li>Master’s students </li><li>PhD students&nbsp;</li></ul>will no longer be subject to the study permit cap. This means they will not&nbsp;need a PAL/TAL (Provincial/Territorial Attestation Letter).In particular, IRCC will also expedite the processing time for:<ul><li>PhD students </li><li>Accompanying family members&nbsp;</li></ul>The processing time could be shortened to as little as 2 weeks.<h3>Some study programs will no longer be eligible for PGWP starting in early 2026.</h3>In June 2025, IRCC announced that&nbsp;178 study programs would no longer be eligible for the&nbsp;Post-Graduation Work Permit (PGWP).By July 2025, IRCC postponed the implementation to early 2026, allowing students who were in the process of applying to complete their applications.This means:<ul><li>These programs will still be eligible for PGWP&nbsp;until&nbsp;an official announcement is made in early 2026. </li><li>From 2026 onwards, students who want to work in Canada after graduation&nbsp;must choose programs listed as PGWP-eligible.</li></ul>PGWP is an open work permit lasting 1 - 3 years that allows students to gain Canadian work experience and move toward permanent residency (PR). Therefore, this change will have a significant impact on many students’ study and career plans.<h2>Conclusion:&nbsp;</h2>2026 marks a significant turning point in Canada’s immigration policy. These changes indicate that the government is aiming to:<ul><li>Reduce the number of temporary residents </li><li>Focus on skilled workers in strategic sectors </li><li>Optimize international student intake to ensure education quality </li><li>Make it easier for Master’s and PhD students </li><li>Prioritize those with Canadian work experience on the path to PR&nbsp;</li></ul>Despite stricter regulations, opportunities remain for those who prepare wisely and choose the right path.<meta charset="utf-8">Read more:&nbsp;<meta charset="utf-8"><ul style="margin-bottom:0;margin-top:0;padding-inline-start:48px;"><li style="background-color:transparent;color:#1155cc;font-family:'Be Vietnam Pro',sans-serif;font-size:12pt;font-style:normal;font-variant:normal;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1"><a style="text-decoration:none;" href="https://loaportal.com/en/news/cost-of-studying-in-canada-2026">Cost of Studying in Canada 2026</a></li><li style="background-color:transparent;color:#1155cc;font-family:'Be Vietnam Pro',sans-serif;font-size:12pt;font-style:normal;font-variant:normal;list-style-type:disc;text-decoration:none;vertical-align:baseline;white-space:pre;" dir="ltr" aria-level="1"><a style="text-decoration:none;" href="https://loaportal.com/en/news/can-international-students-work-full-time-while-studying-in-canada">Can International Students Work Full-Time While Studying in Canada?</a></li></ul>

Canada 2026 Immigration Changes for International Students & Workers

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Albania

Algeria

American Samoa

Andorra

Angola

Anguilla

Antarctica

Antigua and Barbuda

Argentina

Armenia

Aruba

Australia

Austria

Azerbaijan

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Belarus

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Belize

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Brazil

British Indian Ocean Territory

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Canada

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Chad

Chile

China

Christmas Island

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Colombia

Comoros

Cook Islands

Costa Rica

Croatia

Cuba

Curacao

Cyprus

Czech Republic

Democratic Republic of the Congo

Denmark

Djibouti

Dominica

Dominican Republic

East Timor

Ecuador

Egypt

El Salvador

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Estonia

Ethiopia

Falkland Islands

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France

French Polynesia

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Ghana

Gibraltar

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Greenland

Grenada

Guam

Guatemala

Guernsey

Guinea

Guinea-Bissau

Guyana

Haiti

Honduras

Hong Kong

Hungary

Iceland

India

Indonesia

Iran

Iraq

Ireland

Isle of Man

Hitachi Energy will invest C$479 million in a London, Ontario plant for transformer insulation, adding Canadian supply capacity and creating 100+ skilled jobs.

On October 16, 2026, <a href="https://www.hitachienergy.com/company/company-profile">Hitachi Energy</a> announced a CAD 479 million investment to develop a manufacturing facility for electrical insulation materials used in power transformers in London, Ontario. The project is expected to be completed in 2028 and create more than 100 skilled technical jobs.This investment marks more than the addition of a new manufacturing facility in Canada. It also reflects the growing need to strengthen the electrical equipment supply chain as energy demand continues to rise. The expansion of data centres, industrial activity, and electrification is placing greater demands on power infrastructure, highlighting the importance of essential materials and components that support reliable electricity transmission and distribution.<h2>What Will the New Facility Produce?&nbsp;</h2>Spanning approximately 21,000 square metres, the new facility will focus on manufacturing pressboard and laminate insulation materials. These specialized materials are used to electrically insulate internal components in power and distribution transformers. &nbsp;

Hitachi Energy Invests C$479 Million in London, Ontario

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Canada 2026 Immigration Changes for International Students & Workers

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