Canada’s population has continued to shrink for the third straight quarter, reflecting the impact of the federal government’s efforts to reduce the number of temporary residents and moderate overall immigration growth.
According to the latest estimates released by Statistics Canada, the country’s population fell by 55,025 people, or 0.1%, between January 1 and April 1, 2026. The decline follows population contractions recorded during the latter half of 2025, indicating a sustained demographic slowdown after years of rapid growth driven largely by immigration.
The primary factor behind the decline was a sharp reduction in the number of non-permanent residents, a category that includes international students, temporary foreign workers and asylum seekers. Preliminary figures show that the number of non-permanent residents decreased by nearly 118,000 during the first quarter of 2026. Statistics Canada noted that the figures remain subject to revision and will be updated later this year.
The decline comes amid a broader shift in Canada’s immigration strategy. Over the past two years, the federal government has introduced measures aimed at reducing the intake of temporary residents, particularly international students and temporary workers, in response to mounting concerns over housing affordability, pressure on public services and infrastructure constraints.
Permanent immigration has also slowed. Canada admitted 83,149 permanent residents during the first quarter of 2026, representing a drop of more than 20% compared with the same period a year earlier. The reduction aligns with Ottawa’s revised immigration targets, which seek to balance economic needs with the country’s capacity to accommodate newcomers.
Adding to the demographic slowdown, Canada recorded a negative natural increase during the quarter, meaning deaths slightly outnumbered births. The development highlights the country’s aging population and increasing dependence on immigration as a driver of long-term population growth.
The latest figures reinforce a trend that became evident last year when Canada recorded its first annual population decline in decades. Statistics Canada previously estimated that the country’s population fell by more than 100,000 people in 2025, largely due to the departure of temporary residents and lower immigration inflows.
Prime Minister Mark Carney recently acknowledged that slower population growth could have economic consequences, including weaker overall GDP growth. However, he maintained that the government’s decision to tighten immigration controls was necessary to ensure sustainable growth and ease pressures on housing and public infrastructure.
Demographers and economists expect Canada’s population growth to remain subdued over the next few years as the government continues implementing stricter immigration policies. While the slowdown may help address concerns related to housing shortages and rising living costs, experts caution that it could also create challenges for labour markets and long-term economic expansion in a country increasingly reliant on immigration to offset low birth rates and an aging workforce.
