Canada's Non-Permanent Resident Population Continues to Decline in 2025
Sharp Decline Drives Population Stagnation
Canada's population growth has slowed significantly in 2025, with new data revealing a marked decline in non-permanent residents (NPRs) as a key driver. According to Statistics Canada, the country’s population increased by just 0.1 per cent between April 1 and July 1 of this year—the same rate as the first quarter—adding only 47,098 people. This marks the lowest second-quarter growth rate since 1946, excluding the pandemic years.
The primary factor behind this stagnation is a sharp decrease in the number of NPRs living in the country. In the second quarter alone, Canada saw a net loss of 58,719 non-permanent residents—the largest quarterly decline since 1971 outside of the COVID-19 period.
2024 Policy Changes Reduce Temporary Resident Intake
This drop follows major policy shifts by the Canadian government in 2024 aimed at reducing the intake of temporary residents. These changes included cutting back the number of temporary foreign workers, introducing stricter conditions for when employers can hire low-wage workers, and reducing the number of study permits issued to international students.
Statistics Canada reported that the number of people in Canada on work or study permits fell significantly in the first quarter of 2025. While there was a moderate counterbalance due to an increase in asylum claimants, it wasn’t enough to offset the overall decline in temporary resident numbers.
Labour Shortages Emerging In Key Economic Sectors
This shift is already being felt across key sectors of the Canadian economy. Industries such as construction, long-term care, child care, and food production rely heavily on foreign workers to fill essential roles. With fewer non-permanent residents entering the workforce, some businesses are facing labour shortages that threaten to disrupt services and economic productivity.
The situation is further complicated by Canada’s aging population. As more Canadians retire, the demand for skilled workers continues to rise. Newcomers, particularly non-permanent residents, have historically played a crucial role in supporting labour force growth, contributing nearly 79.9 per cent of the increase. Without a steady influx of these workers, Canada may struggle to fill vital roles, particularly in health care and elder care, where demand is expected to surge in the coming years.
Balancing Immigration Policy With Economic Needs
Canada’s declining number of non-permanent residents is having a measurable impact on population growth and the broader economy. While the federal government's policy changes may be aimed at addressing concerns over housing, infrastructure, and service availability, they also risk creating significant labour shortages, especially in essential sectors. Balancing immigration controls with economic and demographic realities will be crucial as the country navigates the challenges of a slowing workforce and an aging population.
Need Help with Your Permit Application?
📞 Contact us today for a consultation and find out how we can help with your journey into Canada.