Canada’s population declined for a third straight quarter, with the outflow of temporary residents identified as the main driver behind the drop.
The latest data shows net losses from temporary residents — including international students, foreign workers and asylum seekers whose permits expired or were not renewed — have outweighed gains from permanent immigration and natural population growth.
—Immigration policy shift takes effect—
The decline comes after the federal government lowered immigration targets and tightened rules around temporary work permits and study permits in late 2024. Prime Minister Mark Carney recently attributed “weakness” in recent economic data partly to the reduced inflow of newcomers.
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Economists say the population contraction is already weighing on consumer spending, housing demand and labour supply in sectors that rely heavily on temporary foreign workers.
—Related trends—
The population drop aligns with other signs of economic slowdown. Canada’s economy posted consecutive quarterly declines earlier this year, with analysts noting that reduced immigration has removed a key source of demand that previously cushioned growth.
For context, temporary residents made up a record share of Canada’s population growth from 2022 to 2024. As those permits expire and departure rates rise, the demographic engine that powered post-pandemic expansion is now reversing.
Statistics Canada is expected to release more detailed provincial breakdowns in its next quarterly update.
This story will be updated as new data becomes available.
