Canada experienced a decline in its population last year, marking the first annual net decrease since Confederation. Statistics Canada’s latest quarterly estimate revealed that the total population, including citizens, landed immigrants, and non-permanent residents, was 41,472,081 as of January 1, 2026, showing a 0.2% drop of over 102,000 compared to the previous year.
Although the population saw a slight increase of over 77,000 individuals in the first half of the year, it was offset by a significant decline of nearly 180,000 in the latter half of 2025. The primary reason for the slowdown in population growth, as per StatsCan, was the decrease in the number of non-permanent residents.
The number of non-permanent residents in Canada decreased steadily from 3,149,131 on October 1, 2024, to 2,676,441 by January 1, 2026. Non-permanent residents encompass individuals with work or study permits, asylum seekers, and their accompanying family members.
According to a spokesperson from Statistics Canada, the agency has been monitoring Canada’s population growth since 1867, with data recorded from different starting points over the years. The agency noted that prior to 2025, there had never been a year with a population decrease.
The preliminary estimate provided by StatsCan advised caution in its interpretation due to potential fluctuations caused by work and study permit extensions. The agency indicated that the population decrease reported could be subject to change when more comprehensive administrative data becomes available in the following months.
In response to the population trends, the government, led by former Prime Minister Justin Trudeau, initiated reductions in both permanent and temporary immigration following a surge in post-pandemic labor shortages. The current administration, under Prime Minister Mark Carney, outlined plans to decrease the intake of temporary residents to 385,000 in 2026, a 43% reduction from the previous year, with further decreases to 370,000 in 2027 and 2028.
Additionally, the government announced restrictions on new permanent resident admissions, capping it at 380,000 annually from 2026 to 2028. The decrease in permanent immigrants in the last quarter of 2025, aligning with the new targets set by the Liberal government, dropped from over 103,000 to just above 83,000.
Overall, the shift in immigration policies and the fluctuations in non-permanent residents have contributed to Canada’s recent population dynamics, and future updates from Statistics Canada will provide a clearer picture of the evolving demographic landscape.