Canada's Immigration Shake-Up: Balancing Act on Housing and Labor

Canada is cutting its immigration numbers to alleviate pressures on housing and social services. Prime Minister Justin Trudeau announced the strategy, which aims to ease public concerns and recalibrate labor needs post-pandemic. The plan sees a reduction in both permanent and temporary residents over the coming years.

Prime Minister Justin Trudeau announced a landmark shift in Canada's immigration policy, aimed at easing the strain on housing and social services following a pandemic-driven labor shortage.

Historically welcoming to immigrants, Canada has seen public opinion shift due to rising concerns over housing affordability, attributed to high immigration numbers. The new strategy slashes permanent residency targets to 395,000 by 2025, dropping to 365,000 by 2027, from an original plan of 485,000 by 2024.

The controversial policy, which also includes a dramatic reduction in temporary visas, has faced backlash from migrant advocates and sectors dependent on labor. However, economists foresee a relief in infrastructure stresses, estimating a reduction of 670,000 units in the housing gap by 2027.

(With inputs from agencies.)