Immigration must be top priority for Ottawa

This fall, the federal government is expected to release its 2026-2028 immigration levels when its 2025 Annual Report to Parliament on Immigration is tabled. Ottawa must show that immigration, including its goals, is a priority as the country looks to meet domestic and international challenges.

Canada is facing a slowing growth. Labour shortages have been reported for months and with increasing competition for talent on the global stage, we cannot afford to treat immigration as a secondary issue. Decisions made this fall will shape our economic and demographic trajectory for years to come.

Following the COVID-19 pandemic, which began in March 2020, the Trudeau government increased the number of foreign students, temporary workers and skilled immigrants coming to Canada. The government at that time believed increasing immigration numbers would jumpstart the economy. However, infrastructure, including homes and health care, failed to meet the increased demand for services.

This led to Trudeau announcing last fall a reduction in immigration. The new targets were set at 395,000 permanent residents in 2025, 380,000 in 2026, and 365,000 in 2027. While those numbers represented a reduction from the previous record-high admissions since COVID, the good news was that the numbers reflected a need for continued immigration to meet new challenges.

During the federal election campaign earlier this year, then-candidate Mark Carney promised to keep the cap on immigration announced by Trudeau the previous year.

After the election, Carney’s approach to immigration indicated he would keep a more cautious approach to immigration. This was revealed in his mandate letter in May, noting the importance of “sustainable levels” for immigration. The letter also included two core objectives: capping non-permanent residents at less than five per cent of the population and limiting annual growth of permanent residents to less than one per cent.

Carney’s government says its goal is to attract “the best talent from around the world” to strengthen Canada’s economy. Yet the challenge is in addressing the labour shortages our country faces, particularly with highly skilled workers and the present cap on immigration. We need to highlight the importance of skilled immigration and ensure we are getting the skills needed, where they are needed.

At the Council of the Federation meeting in July in Huntsville, Ont., premiers and territorial leaders across the country made it clear that they want more inclusion in the immigration file. In a joint statement at the meeting, they urged Ottawa “to restore provincial nominee program (PNP) allocations, which were cut in half, and to expand the provinces’ role in selecting economic immigrants.”

PNPs allow immigrants who have specific skills and work experience and want to live in a specific province or territory with the objective of becoming a permanent resident to have an easier path to immigration. Since their introduction in the late 1990s, PNPs have become the most important pathway for skilled newcomers. In 2023, they accounted for 40 per cent of all economic immigrants to Canada, up from just one per cent in 2000.

Manitoba was the first province to launch its PNP in 1998. Premier Wab Kinew is pushing for more skilled workers and to accept more immigrants for 2025 to bolster economies, especially in rural areas with increased labour shortages. Kinew has taken to social media to encourage people to relocate, saying, “This is Manitoba. And there’s a place for you here.”

Historically, Manitoba has suffered from more people leaving the province than those moving into the province from other parts of the country; however, as the province reduces its trade and mobility restrictions, those numbers are improving.

With Canada’s fertility rate falling to a record low of 1.26 in 2023 according to Statistics Canada, there is no doubt that immigration is needed. These numbers show that without immigration, our labour force will shrink, tax revenues will be impacted, and as a nation, we will not be able to fund public services at their current level.

At a time of global upheaval and intensifying competition for talent, Canada cannot afford to be left behind. Other countries in Europe and beyond are aggressively seeking skilled workers. If Canada signals ambivalence, we risk losing the very people who could drive our future prosperity.

Immigration must be a priority file just as trade, defence and trade are, and it must be treated with a Team Canada approach with all provincial and federal leaders working together. As the federal government finalizes its new immigration plan, we need to ensure there is a clear strategy to match numbers with skills, and ambition with economic necessity. Canada’s future depends on it.

» Kumaran Nadesan is the co-founder and deputy chairman of 369 Global focused on skills training, media and talent mobility. His debut book, “The Impolite Canadian: How Playing Nice is Costing Us the Future,” will be released in spring 2026.