The Immigration Context

Political and economic realities evolved–and will continue to evolve through 2025–as both Canadian and international contexts changed.

A fundamental driver in this uncertainty was the increasing public debate and a growing loss of trust in the immigration system. Fueled by concerns over temporary resident numbers and capacity concerns about housing, healthcare, and other infrastructure capacity, the federal government announced reduced immigration targets for both permanent residents (PRs) and temporary residents (TRs) in November 2024.

While 2024 itself was marked by record levels of immigration across all classes, the announced reductions for 2025 included fewer government-assisted refugees following the completion of the Afghan Resettlement Initiative, as well as new caps on international post-secondary students and reductions to the Provincial Nominee Program.

At the same time, the settlement sector across Canada was coming to the end of its five-year contract cycle with the federal government through IRCC, with all services being subject to competitive bids for services starting April 1, 2025. Here in BC, and across the country, there were substantial changes: reduced service levels, fewer provider organizations, and shifting programs in many communities.

For many organizations, including ISSofBC, the start of 2025 meant transitioning services, addressing funding reductions, and reducing staffing. Notably, IRCC also announced it will end funding for higher-level LINC (Language Instruction for Newcomers to Canada) classes nationwide beginning in mid-2026. Together, these shifts are significantly reshaping the environment in which we support immigrants and refugees.

At the provincial level, the BC government introduced redesigned and enhanced services: the BC Newcomer Services Program (BC NSP) and BC SAFE HAVEN, designed to support temporary residents, naturalized citizens, and refugee claimants. With increasing demand from clients not eligible for IRCC programs, and from higher levels of asylum seekers,  these new services were welcomed. In October 2024, the BC NDP government was re-elected for a third term, but with a much-reduced majority. 

Despite widespread public concern about immigration levels, the critical economic importance of immigration–and the successful integration of newcomers–to BC and Canada remains. Since 2023, all of BC’s net population growth has come exclusively from international migration, a trend that will extend to the entire country over coming years.

In the next decade, nearly 50 per cent of BC’s labour needs will be met by new immigrants, amid a projected shortfall of 1.1 million workers, driven largely by retirement. Without immigration, Canada’s population is set to decline. We are already seeing a slowdown in population growth. Moreover, an estimated two million temporary residents are expected to leave Canada by the end of 2026—marking the largest outflow since the 1940s.

While the formal financial year came to an end on March 31, 2025, the pace of change has continued in the months since then and since the publication of this report. A new federal government is in place under Prime Minister Mark Carney with a mandate to address critical issues including the economic impact of US tariffs. The new Minister of Immigration, has been given her own mandate: “Attracting the best talent in the world to help build our economy, while returning our overall immigration rates to sustainable levels.”

In responding to this volatile and uncertain context, ISSofBC will continue to advocate both for the needs and rights of newcomers who do arrive in Canada, as well as the overall health of the Canadian immigration system. We are part of a growing coalition of voices from within and beyond the settlement sector–including business groups–calling for a fundamental renewal of a vision for Canadian immigration that:

• Commits to clear, responsive, and streamlined immigration programs
• Ensures all-of-government coordination and investment
• Counters and repudiates anti-immigration rhetoric
• Reaffirms and continues to strengthen humanitarian programs
• Clearly defines success measures.