Undocumented Residents in Immigration Planning

Why Economists Urge Canada to Include 500,000 Undocumented Residents in Immigration Planning

As Canada prepares its next immigration levels plan for 2025–2027, economists are calling for a major shift, include the estimated 500,000 undocumented residents already living in the country. Experts argue that accurate data on the population is crucial for shaping housing, labor, and economic policies.

Without accounting for these residents, projections for infrastructure, schools, and health care could fall short, leaving gaps in planning.

The Hidden Population in Canada

While Canada officially tracks temporary and permanent residents, undocumented individuals are often left out of the statistics. These include people who overstayed visas, had asylum claims refused, or lost work permits but remained in the country.

Economists like CIBC’s Benjamin Tal emphasize that these residents are no longer a small group half a million is large enough to impact Canada’s economy and housing demand. Ignoring them could distort immigration targets and lead to under preparedness in key sectors.

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Why This Matters for Immigration Policy

The immigration levels plan for 2025–2027 is more than just a numbers game. It determines how many new permanent and temporary residents Canada admits each year, shaping everything from the workforce to community growth.

If undocumented residents remain excluded:

  • Housing needs may be underestimated.
  • Healthcare systems may lack proper funding.
  • Job market data may appear inaccurate, even when industries rely on undocumented labor.

Economists argue that integrating these residents into official plans would improve policy accuracy and strengthen economic stability.

Government’s Current Approach

So far, the federal government has made limited progress. In March 2025, it announced a pathway for 6,000 undocumented construction workers. While this was seen as a step forward, implementation has been delayed. Broader regularization programs, similar to those in countries like Ireland have been discussed but not finalized.

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The last immigration plan included modest targets: 250 undocumented residents in 2025, 500 in 2026, and 1,000 in 2027. Critics argue this is far too low compared to the actual scale of the population.

A Call for Broader Regularization

Advocates stress that many undocumented residents have lived in Canada for years, raised families, and contributed to industries in need of labor. Bringing them into the system would not only support fairness but also improve Canada’s workforce stability.

Including them in the immigration levels plan for 2025–2027 would help Canada better manage growth, address labor shortages, and ensure more reliable planning for housing and infrastructure.

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The push to include 500,000 undocumented residents in Canada’s immigration planning is about more than statistics; it’s about aligning policy with reality. By factoring in this population, the government can make the immigration levels plan for 2025–2027 more accurate, equitable, and sustainable for the future.

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