Canada's Strategic Immigration Shift: Recruiting H-1B Visa Holders While Reducing Foreign Students

Canada's government is implementing a strategic shift in its immigration policy, planning to decrease foreign student admissions by 25-32 percent starting next year while simultaneously creating specialized entry pathways for elite international researchers and H-1B visa holders from the United States.

Prime Minister Mark Carney's administration has revealed its inaugural budget featuring a talent attraction initiative with an allocation of approximately $1.2 billion (over Rs 106 crore) to recruit more than 1,000 skilled professionals.

According to the budget document, "The expertise of these researchers will help advance our global competitiveness and contribute to the economy of the future."

The Carney administration is preparing to introduce an "accelerated pathway" specifically designed for H-1B visa holders in the coming months.

This new Canadian program is positioned to attract exceptional talent from the United States and globally. The initiative follows President Donald Trump's decision to increase H-1B visa fees to $100,000. Since Trump's administration took office, the uncertainty surrounding the H-1B visa program and green card policies has created anxiety among many skilled immigrants currently residing in the US.

Ottawa has been implementing strict controls on immigration numbers following a recent surge in population growth.

Under the revised immigration framework, Ottawa aims to maintain a balance by reducing overall incoming residents while preserving the flow of highly skilled workers. The government targets admitting 380,000 permanent residents annually from 2026 through 2028. However, it's reducing temporary residents to 385,000 in 2026 and further to 370,000 for the subsequent two years, according to Bloomberg reporting.

This represents a reduction exceeding 40 percent from current levels. Additionally, the government plans to dramatically decrease new study permits, targeting 155,000 in 2026 and reducing further to 150,000 in both 2027 and 2028.

These figures mark a significant decrease from former Prime Minister Justin Trudeau's government projections of 305,900 permits annually for 2025 through 2027.

Universities Canada stated that it "recognises the government's efforts to build a sustainable immigration system that welcomes those seeking to study at Canada's world-class universities, but the plan must match this government's talent and economic agenda."

According to analysis by Canadian financial firm Desjardins, reduced immigration "should support wage growth in the near-term, as employers bid to attract fewer available workers."

The policy shift will likely moderate population growth compared to previous targets. However, Desjardins indicates that revisions to GDP growth forecasts are minimal.

"The slower population growth should ease shelter inflation, particularly in the rental sector, as temporary foreign workers and international students are more likely to rent. Lastly, the slower pace of population growth should help reverse Canada's falling GDP per capita," the report noted.

The government now aims to reduce the proportion of non-permanent residents to below 5 percent of the population by the end of 2027, extending this target by one year. As of July 1, this figure stood at 7.3 percent.