Canada unveils new immigration plan for H-1B visa holders: What employers should know

Canada has introduced a new immigration strategy designed to aggressively attract world-class researchers and, notably, US H-1B visa holders. Announced by Prime Minister Mark Carney during his first federal budget presentation, the plan marks a major shift aimed at strengthening Canada’s global competitiveness and talent pool. The government intends to admit 380,000 permanent residents each year from 2026 to 2028.

Details of the new immigration strategy

Targeting H-1B talent and researchers

Canada is directly capitalizing on the recent US policy change that raised H-1B visa fees to a steep USD 100,000 starting in September 2025.

• Fast-track for H-1B holders: The government has introduced an “accelerated pathway” for US H-1B visa holders to settle in Canada. Details on this fast-track process are expected to be released in the coming months.
• Investment in research: A substantial USD 1.2 billion will be invested to recruit more than 1,000 top researchers. The federal budget states that the expertise of these researchers will help advance Canada’s global competitiveness and contribute to the economy of the future.

Significant reduction in temporary residents

To stabilize the immigration system, the government is simultaneously pursuing a significant reduction in the number of temporary residents in Canada.

• Target reduction: Ottawa aims to cut the proportion of non-permanent residents to below 5% of the population by the end of 2027, down from 7.3% recorded earlier in the year.
• Admission cuts: Temporary resident admissions are expected to drop nearly 40%, falling to 385,000 in 2026 and 370,000 in 2027 and 2028.
• Impact on study permits: Study permits will see the largest decrease, projected to fall to 155,000 in 2026 and 150,000 in 2027 and 2028. This is dramatically lower than the previous government’s projection of approximately 305,900 study permits annually.

What this means for skilled workers

The plan offers a unique and opportune pathway for highly skilled foreign professionals, particularly those already in North America.

• Immediate opportunity for H-1B holders: For skilled workers holding the costly US H-1B visa, Canada presents a highly attractive and accelerated pathway to permanent residency, offering security and stability that the US system currently lacks.
• High-value roles: The recruitment drive and investment signals significant opportunities in research and advanced technology fields for top talent globally.
• Increased competition for temporary status: Workers seeking to enter Canada as international students or temporary workers will face stiffer competition due to the dramatic cut in admissions.

What it means for employers

Canadian and international companies looking to hire highly skilled, established talent stand to benefit significantly, but must prepare for challenges in other recruitment channels.

• Access to elite talent: Employers now have a strong policy incentive to recruit skilled professionals directly from the US H-1B pool. This is a targeted and high-quality source of talent that is already accustomed to the North American work environment.
• Recruitment challenges: The significant reduction in temporary residents, particularly international students, will decrease the domestic pool of recent graduates and temporary foreign workers. This could lead to a tightening of the lower-to-mid-tier talent market, necessitating more focused global recruitment efforts.

For international businesses leveraging this policy to hire top researchers or US H-1B holders:

• Seamless onboarding of permanent residents: Utilizing Global Payroll services from a provider like Multiplier is essential to ensure that newly admitted permanent residents are paid accurately and compliantly from day one. Multiplier handles the complex Canadian tax and social security deductions.
• Hiring US-based professionals: For US H-1B holders who may be working remotely from the US while their Canadian permanent residency application is processed, a global hiring partner can provide compliant employment. Multiplier’s Employer of Record (EOR) service ensures that a US-based employee is legally employed and paid compliantly in the US until they physically transition to Canada, avoiding administrative headaches and legal risk.

Conclusion

Canada’s new immigration plan is a bold and strategic response to global talent competition, directly aiming to attract high-value researchers and US H-1B visa holders while simultaneously controlling temporary resident numbers.

This dual-pronged approach creates exceptional opportunities for permanent residency for skilled professionals and requires companies to be agile in their hiring and compliance strategies, making global employment solutions more critical than ever.

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