Canada’s Population Declines Amid Immigration Cap

Canada’s population has decreased by 76,068 individuals from July to October 2025. This contraction is primarily attributed to new restrictions on immigration, as reported by Statistics Canada.
Key Factors Behind Population Decline
The reduction in population has been significantly influenced by a drop in non-permanent residents. Statistics Canada indicated that the federal government aims to limit temporary residents to 5% of the total population of 41.6 million by 2027.
- Population change from July to October 2025: -76,068
- Percentage of non-permanent residents: 6.8%
- Population goal by 2027: 5% non-permanent residents
Historical Context
This decline marks the sharpest quarterly decrease since the 1940s. According to Bank of Montreal senior economist Robert Kavcic, this is a significant demographic adjustment that reflects a major economic theme in Canada.
In contrast, 2022 witnessed a population surge of over a million residents, largely driven by increased immigration aimed at alleviating labor shortages. In 2023, immigration accounted for approximately 97% of Canada’s population growth.
Government Responses
Former Prime Minister Justin Trudeau attempted to bolster immigration levels, with plans to welcome half a million newcomers annually by 2025. However, his government later acknowledged that the rapid influx was straining housing costs and social services, leading to a pause in growth.
Current Prime Minister Mark Carney has continued this trend by proposing significant cuts to immigration targets. The figures for new temporary residents are set to decrease from 673,650 to 385,000 next year, with further reductions planned for 2027 and 2028.
Impacts of Non-Permanent Resident Drop
The recent census data highlighted that the third quarter of 2025 saw a 0.2% population decrease, primarily due to fewer non-permanent residents, especially international students and temporary workers. This marked the largest decline in this demographic since records began in 1971.
Provincial Trends
Ontario and British Columbia experienced the most significant population decreases. In contrast, Alberta and Nunavut were the only regions reporting population growth during this period.
- Provinces with the largest declines: Ontario, British Columbia
- Regions with population growth: Alberta, Nunavut
This population decline amid tight immigration policies presents a complex scenario for Canada’s future economic stability. Balancing immigration levels with societal needs remains a critical challenge for the government moving forward.




