Canada’s Population Declines for the First Time in Years

Canada’s population has recorded a notable decline, marking a sharp reversal from the rapid growth seen in recent years. According to Statistics Canada, the country’s population fell by 76,068 people between July and October, largely due to tighter limits on immigration. This contraction reflects a significant policy shift by the federal government and highlights changing priorities in managing population growth.

Immigration Limits Drive the Decline

Statistics Canada reported that the population decrease was driven mainly by a drop in non-permanent residents, including international students and temporary foreign workers. This comes after Ottawa set a target to reduce temporary residents to 5% of Canada’s total population of 41.5 million by 2027.

As of October, there were more than 2.8 million non-permanent residents living in Canada, accounting for approximately 6.8% of the population. The government’s efforts to reduce this figure are now clearly reflected in the latest population data.

A Sharp Contrast With Recent Growth

The population decline stands in stark contrast to 2022, when Canada’s population grew by more than one million people. That surge was fueled largely by immigration policies aimed at easing labour shortages across key sectors of the economy.

The recent drop is the second-largest population decline on record, with comparable decreases only seen in rare periods dating back to the 1940s. It also marks a turning point after several years of record-breaking growth driven almost entirely by newcomers.

Shifting Government Strategy

Former Prime Minister Justin Trudeau championed ambitious immigration targets, including a plan to welcome 500,000 immigrants annually by 2025. By 2023, immigration accounted for roughly 97% of Canada’s population growth, underscoring its central role in the country’s demographic expansion.

Under Prime Minister Mark Carney, however, the Liberal government has adopted a more restrained approach. The government plans to reduce the number of new temporary residents from 673,650 to 385,000 next year, with further cuts to 370,000 in both 2027 and 2028.

Regional Impact Across Canada

Preliminary data show that Canada’s population shrank by 0.2% in the third quarter of 2025, marking the first decline since the Covid-19 pandemic in 2020. The effects were not evenly distributed across the country.

Ontario and British Columbia experienced the largest population declines, while Alberta and the territory of Nunavut were the only regions to record population growth.

What This Means Going Forward

Canada’s population decline signals a new phase in federal immigration policy. As the government balances housing, infrastructure, and labour needs, population trends will remain closely watched—both at home and internationally.