The Carney government is implementing measures to reduce immigration levels in Canada, particularly following the surge experienced after the COVID-19 pandemic. A significant factor in this reduction is the decrease in the number of refugees being granted upgraded immigration status. Data from the Metropolis Institute indicates that the cuts are primarily affecting regions outside of Ontario and Quebec, which are largely maintaining their immigration targets set by the Liberal government last year.

Jack Jedwab, president of the Metropolis Institute, noted that while there has been speculation about whether the government will meet its immigration targets, there has been less focus on how these reductions will be achieved and which immigrant categories will be impacted. According to Jedwab, the number of permanent immigrants entering Canada as skilled workers or through family reunification has remained relatively stable despite the cuts.

However, there has been a significant decline in the number of refugees transitioning to permanent residency. In the first half of 2024, 38,375 refugees were granted permanent resident status. This number dropped to 24,345 in the same period in 2025, marking a 36 percent decrease. Other immigration streams also experienced slight reductions, but not to the same degree. For instance, the number of permanent residency cards issued for family reunification decreased by about 10 percent, from 51,420 in the first half of 2024 to 46,880 in the first half of 2025.

Economic immigration, which includes skilled workers and investor immigrants, also saw a decline, with numbers falling from 158,415 in early 2024 to 130,650 in early 2025, an 18 percent reduction. The impact of these cuts is not uniform across Canada. Central Canada has largely maintained its levels of permanent residents, while the prairies and Atlantic provinces have experienced more significant declines. For example, Prince Edward Island saw its permanent resident numbers cut in half, from 2,340 in the first half of 2024 to 1,195 in the first half of 2025. Similarly, Saskatchewan's numbers dropped from 11,205 to 6,355.

In contrast, Quebec is the only province that has seen an increase in new permanent residents, rising from 20,165 in early 2024 to 21,235 in early 2025. Ontario's figures, however, decreased from 56,080 to 52,845 during the same period.

In October, the Liberal government, led by then-Prime Minister Justin Trudeau, announced plans to reduce immigration levels, aiming to align them more closely with "community capacity." Initially, the government planned to approve 500,000 new permanent residents in 2025, but this target was revised down to 395,000. Recent reports indicate that Canada is on track to miss even these lower targets, having accepted 246,300 new permanent residents in the first seven months of the year.