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Immigration· Canada

Why Canada Welcomes Immigrants: The Reasons Behind the Policy

Why Canada admits hundreds of thousands of newcomers a year: an ageing population, record-low births and labour gaps, explained with StatCan data.

Updated Sep 18, 2026 · 8 min read

Key takeaways

  • Almost one in five people in Canada (19.5%) were 65 or older in July 2025, and the fertility rate fell to a record low of 1.25 children per woman in 2024.
  • Immigration accounted for about four-fifths of Canada's labour force growth between 2016 and 2021, according to the 2021 Census.
  • Canada plans 380,000 permanent resident admissions a year from 2026 to 2028, with 239,800 in the economic category in 2026.
  • Canada is also cutting temporary arrivals to ease pressure on housing and services, aiming to bring temporary residents below 5% of the population by the end of 2027.
  • Welcoming immigration doesn't mean easy approval. Canada is choosing people whose skills match specific gaps.

If you're thinking about moving to Canada, it helps to understand why the country wants newcomers in the first place. The reasons shape which programs open, which jobs are favoured and how many people get in each year.

This guide explains the thinking behind Canada's immigration policy using Statistics Canada (StatCan) data and the government's own 2026–2028 plan. It also covers the recent cuts, because a balanced picture will serve you better than the "Canada needs millions of workers" headlines you'll see in ads.

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The three purposes of Canadian immigration

Canada admits permanent residents in three broad groups, each with its own purpose:

  • Economic immigrants are selected for their skills, work experience or business ability. They're the largest group by far.
  • Family class immigrants are spouses, partners, children, parents and grandparents sponsored by Canadian citizens or permanent residents.
  • Refugees and protected persons are people who fled persecution, war or serious human rights abuses.

Each serves a different goal: growing the economy, keeping families together and meeting Canada's humanitarian commitments. The economic goal is the one that drives most of the numbers.

Reason one: an ageing population

Canada is getting older quickly. On 1 July 2025, StatCan estimated that almost one in five people in Canada (19.5%) were aged 65 or older. Children aged 0 to 14 made up just 15.0% of the population.

The picture is sharper in some regions. In Newfoundland and Labrador, 25.2% of residents were 65 or older, making it the first province where more than a quarter of people are seniors.

An older population means more people drawing pensions and using health care, and relatively fewer people working and paying the taxes that fund them. Immigrants help close that gap because they tend to arrive young. The 2021 Census found that almost two-thirds of recent immigrants were in their prime working years, aged 25 to 54.

Reason two: record-low birth rates

The second reason is that Canadians are having fewer children. Canada's total fertility rate fell to 1.25 children per woman in 2024, a record low and well below the 2.1 needed to keep a population stable without immigration. StatCan says Canada has now entered the ranks of "ultra-low fertility" countries.

In the first quarter of 2026, deaths outnumbered births in Canada, by 155. StatCan notes this tends to happen in winter months, but it shows how little natural growth is left.

IndicatorFigureSource
People aged 65 and over19.5% (1 July 2025)StatCan
Children aged 0 to 1415.0% (1 July 2025)StatCan
Total fertility rate1.25 (2024, record low)StatCan
Natural increase, first quarter 2026Minus 155StatCan
Immigrants' share of the population23.0% (2021 Census)StatCan

Reason three: workers and the labour force

With fewer young Canadians entering work and more retiring, immigration has become the main source of new workers. Between 2016 and 2021, immigration accounted for 79.9% of Canada's labour force growth, according to the 2021 Census. StatCan also found more Canadians in the pre-retirement 55 to 64 age group than in the 15 to 24 group entering the workforce.

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That's the long-term logic. The short-term picture in 2026 is more balanced than it was a few years ago. In the second quarter of 2026, employers reported about 510,200 vacant jobs, with around three unemployed people for every vacancy. The share of jobs left vacant for 90 days or more fell to 25.9%, down from a peak of 39.5% at the end of 2022.

In other words, Canada still has real, persistent gaps, especially in the trades, transport and some science and technical roles, but it's no longer a market where any skilled newcomer walks straight into a job. Our look at immigrants in the Canadian labour market covers what that means for job seekers.

Reason four: regional and rural needs

Population ageing isn't spread evenly. Atlantic Canada and many rural areas are older and grow more slowly than big cities. That's why several immigration programs focus on smaller places:

  • The Atlantic Immigration Program connects employers in Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland and Labrador with foreign workers.
  • Provincial Nominee Programs let provinces choose people for their own labour markets. British Columbia, for example, directs at least 35% of its nominations to communities outside Metro Vancouver.
  • Rural and francophone community pilots support smaller communities and French-speaking communities outside Quebec.

If you're open to living outside Toronto, Vancouver or Montreal, you're aligning yourself with one of Canada's clearest policy goals. Our province comparison shows which provinces are selecting whom.

Reason five: family and humanitarian commitments

Not every reason is economic. Canada plans 84,000 family class admissions and 49,300 refugee and protected person admissions in 2026. Family reunification helps newcomers settle and stay, and refugee protection reflects Canada's international commitments.

The 2026–2028 levels plan in numbers

Each year, the federal government publishes an Immigration Levels Plan setting targets for the next three years. Here are the main permanent resident targets.

Category202620272028
Total permanent residents380,000380,000380,000
Economic239,800244,700244,700
Of which Provincial Nominee Program91,50092,50092,500
Family84,00081,00081,000
Refugees and protected persons49,30049,30049,300
New temporary resident arrivals385,000370,000370,000

The government says the economic category will reach 64% of admissions by 2027, its highest share in over a decade.

Why Canada is also cutting numbers

A welcoming policy isn't an unlimited one. After very rapid population growth in 2023 and 2024, the government changed course.

The 2026–2028 plan aims to cut the share of non-permanent residents, such as international students and temporary workers, to less than 5% of the population by the end of 2027. Permanent resident admissions are expected to equal about 0.9% of the population in 2028. The stated aim is to balance economic needs against pressure on housing, health care and other services.

The effect is already visible. StatCan estimates Canada's population fell by 55,025 people between 1 January and 1 April 2026. It welcomed 83,149 permanent immigrants in that quarter, 20.2% fewer than a year earlier, and the number of non-permanent residents dropped by about 117,900.

Who Canada is choosing now

The policy reasons translate into concrete selection choices. In 2026, IRCC runs Express Entry category rounds for:

  • French-language proficiency
  • Health care and social services occupations
  • STEM occupations
  • Trade occupations
  • Education occupations
  • Transport occupations
  • Physicians, senior managers and researchers with Canadian work experience
  • Skilled military recruits

The minimum experience for most categories rose from six months to one year in 2026. The government has also announced one-time measures to move up to 33,000 work permit holders to permanent residence in 2026 and 2027, a sign that it prefers people already working in Canada.

Where the 2026 invitations actually went

Policy statements are one thing. Invitations are another. Here's how Express Entry invitations to apply for permanent residence were split between 1 January and 16 September 2026, according to IRCC's published rounds.

Round typeRounds heldInvitations issuedCut-off range (CRS)
Canadian Experience Class1653,250507 to 523
French-language proficiency1050,500382 to 420
Health care and social services311,500467 to 475
Provincial Nominee Program188,537697 to 805
Trade occupations13,000477
Senior managers, physicians, transport and military82,195169 to 470

Two things stand out. First, about 41% of invitations went to people with Canadian work experience through the Canadian Experience Class, which fits the government's preference for people already in the country. Second, French speakers received almost as many invitations as that group, with much lower cut-offs, because strengthening French-speaking communities outside Quebec is a stated policy goal.

What you won't see is a general round open to every skilled worker abroad. If you're applying from outside Canada without French or a provincial nomination, the policy reasons in this guide explain why your path is harder, and why language scores, in-demand experience and regional flexibility matter so much.

For how the rounds themselves work, see our guide to Express Entry draws.

Costs and money

Canada's welcome doesn't come free. For a typical economic application in September 2026, IRCC charges CAD 1,590 per adult (including the right of permanent residence fee), CAD 270 per dependent child and CAD 85 per person for biometrics, up to CAD 170 for a family.

Many programs also require proof of funds to show you can support yourself while you settle. Add language tests, credential assessments, medical exams, police certificates, flights, a rent deposit and a cushion for your first months without income. Provincial programs often charge their own application fees too.

Step by step: using policy to plan your move

  1. Read the current levels plan. Note which categories are growing and which are shrinking.
  2. Find your occupation's NOC code and check whether it's in an Express Entry category or a provincial priority list.
  3. Test your language skills. French is one of Canada's clearest priorities in 2026.
  4. Consider regions where newcomers are most needed.
  5. Think about working in Canada first, since many 2026 measures favour Canadian experience.
  6. Budget realistically for fees, funds and a slower job search than older articles suggest.

Scams that exploit Canada's reputation

  • "Canada needs 1 million workers, apply now" ads that lead to paid "registration" forms. There's no such registration.
  • Paid job offers or LMIAs. Employers can't charge you for a job, and buying an offer puts your application at risk.
  • Fake lotteries and "free visas". Canada has no immigration lottery for workers.
  • Unlicensed agents. Only licensed consultants, lawyers and Quebec notaries can charge for immigration advice.

Your next steps

  • Read the 2026–2028 levels plan summary on canada.ca.
  • Check whether your occupation fits a 2026 category or provincial priority.
  • Book a language test, and consider French if you have a base in it.
  • Compare provinces, including smaller and rural communities.
  • Ignore any source that promises approval or quotes outdated numbers.

Canada welcomes immigrants for clear, practical reasons: an ageing society, too few births and real gaps in its workforce. Understanding those reasons is the first step to showing Canada that you're part of the answer.

Frequently asked questions

Why does Canada need immigrants?

Mainly because its population is ageing and families are having fewer children. Without newcomers, the number of working-age people supporting retirees, health care and public services would shrink.

How many immigrants will Canada accept in 2026?

The 2026–2028 Immigration Levels Plan targets 380,000 new permanent residents in 2026, within a range of 350,000 to 420,000. The same target applies in 2027 and 2028.

Is Canada reducing immigration?

It's reducing temporary resident arrivals sharply and keeping permanent admissions steady at 380,000. The government says this is to ease pressure on housing, health care and other services.

What kind of immigrants does Canada want most?

The economic category makes up the largest share, rising to 64% of admissions by 2027. In 2026, Express Entry categories prioritise French speakers and jobs in health care, trades, education, transport and STEM, among others.

Does Canada's welcome mean it's easy to get PR?

No. Targets are limited, competition is strong and every applicant must meet program rules and pass medical, security and background checks.

Official sources

  1. IRCC: Supplementary information for the 2026–2028 Immigration Levels Plan
  2. IRCC: 2026–2028 Immigration Levels Plan, CIMM briefing, 4 December 2025
  3. Statistics Canada: Canada's population estimates, second quarter 2025
  4. Statistics Canada: Canada's population estimates, first quarter 2026
  5. Statistics Canada: Fertility and baby names, 2024
  6. Statistics Canada: Immigrants make up the largest share of the population in over 150 years
  7. Statistics Canada: Job vacancies, second quarter 2026
  8. IRCC: Canada prioritizes top talent in 2026 Express Entry categories

This guide is general information, not legal, immigration or financial advice. Rules and fees change, so check the official sources before you act. We are not affiliated with any government agency, and we never charge for applications. Read our disclaimer.