Canada’s population growth slowed almost to a standstill in the second quarter of 2025. New data from Statistics Canada shows the country recorded one of its weakest increases since modern record-keeping began in 1946, outside the pandemic years. The sharp decline in non-permanent residents explains the slowdown, reflecting the impact of federal immigration policy changes.
Canada’s Population Growth Hits Record Low
Between April and July 2025, Canada’s population grew by just 47,098 people, a 0.1 percent increase. The growth rate matched the slow pace of the first quarter. According to Statistics Canada, this was the lowest second-quarter increase since 1946, excluding the pandemic years when international movement nearly stopped.
The agency said that the drop in non-permanent residents was the primary driver. A net 58,719 temporary residents left the country in the period, marking the largest quarterly decline since 1971, excluding pandemic-related departures.
Why Non-Permanent Residents Are Leaving Canada
Canada’s immigration framework changed significantly in 2024. The federal government introduced restrictions that directly affected non-permanent residents. These included:
-
Reduced temporary foreign worker permits: Fewer low-wage work permits were approved, and employers faced new hiring restrictions.
-
Cuts to study permits: Fewer international students were admitted, particularly to private institutions with limited oversight.
-
Stricter rules on program renewals: Renewals for both study and work permits faced tougher criteria.
These measures reversed the policies from the post-pandemic years, when Canada expanded access to temporary visas to fill labor shortages. Between 2022 and 2023, Canada’s population surged by almost one million annually, mainly due to an influx of non-permanent residents.
Canada’s Population Growth and the Role of Students
International students have historically fueled Canada’s population growth. However, the number of study permits fell sharply in 2025 after the government capped admissions. The decline hit provinces like Ontario and British Columbia hardest, where international enrollment had supported housing demand, part-time labor markets, and local economies.
With fewer students arriving and more leaving, the overall non-permanent resident population shrank. That contributed directly to the weak national growth rate.
For context, international students represented nearly 40 percent of non-permanent residents in Canada as of 2023. A large reduction in this category inevitably reshaped Canada’s demographic outlook.
Temporary Foreign Workers and Labor Market Pressures
Canada’s labor market is also adjusting to fewer temporary foreign workers. These workers have historically supported industries such as agriculture, construction, and hospitality.
According to Employment and Social Development Canada, tighter rules introduced in 2024 forced employers to prioritize Canadian citizens and permanent residents before hiring foreign workers. The changes also capped the share of low-wage temporary workers that a business could employ.
This reduced reliance on temporary workers slowed Canada’s population growth, while raising concerns in sectors still struggling with staff shortages.
Asylum Claimants Partly Offset Decline
Statistics Canada noted that an increase in asylum seekers partially offset the decline in temporary residents. However, asylum claims, while significant, could not reverse the overall negative trend.
The number of new claimants rose in spring 2025, but not at the pace seen in previous years. Processing delays and policy changes around safe third-country agreements further limited the impact on overall population growth.
Comparing Past and Present Population Growth
The difference between Canada’s current growth and the post-pandemic surge is striking.
| Year | Annual Population Growth | Key Driver |
|---|---|---|
| 2022 | +1 million | Surge in temporary residents |
| 2023 | +1 million | Study permits, work permits |
| 2024 | +850,000 | Tightened immigration policy |
| 2025 (Q1+Q2) | +94,000 | Decline in temporary residents |
This table shows how policy adjustments dramatically changed Canada’s demographic trajectory in just two years.
Policy Goals Behind Slower Population Growth
The government argues that reducing Canada’s population growth through fewer non-permanent residents is necessary. Rising housing costs, stretched health services, and crowded classrooms were among the main public concerns driving the policy shift.
Officials stressed that managing the intake of temporary residents would ease pressure on cities already facing affordability crises. The federal government also framed the cuts as part of a broader plan to prioritize permanent immigration pathways over temporary ones.
Economic and Social Impact of Population Slowdown
The decline in non-permanent residents carries significant economic implications. Industries that relied on temporary workers face higher recruitment costs. Universities and colleges that depended on international tuition face budget shortfalls. Rental markets in urban centers may see reduced demand, though affordability challenges remain.
At the same time, reduced Canada’s population growth could affect long-term labor force expansion. With an aging population and low birth rates, the country relies heavily on immigration to sustain economic development.
Canada’s Immigration Outlook
While non-permanent residents are declining, permanent resident admissions remain stable. The government continues to target over 465,000 new permanent residents annually through Express Entry and provincial nominee programs.
The policy shift suggests that Canada intends to balance permanent and temporary streams differently. Instead of allowing population growth to balloon through short-term permits, the focus is now on long-term integration.
What Slower Population Growth Means for Applicants
For individuals seeking to study, work, or live in Canada, the slowdown signals a tougher environment. Applications face higher scrutiny, and processing backlogs may extend timelines. Employers planning to hire foreign talent must account for stricter limits.
Applicants should ensure their paperwork is complete and accurate to avoid delays. Seeking guidance from experienced immigration lawyers increases the chance of approval in a shifting policy landscape.
Conclusion
Canada’s population growth slowdown reflects more than just numbers. It highlights the direct impact of immigration policy on the economy, education, and labor markets. The decline in non-permanent residents signals a shift in priorities, as Canada balances growth with social and infrastructure pressures. Yet with an aging population and ongoing labor shortages, immigration will remain central to Canada’s long-term stability. Partnering with trusted advisors like Maple Crest Immigration Law provides the clarity and direction needed to navigate these changes with confidence.
For individuals and businesses navigating Canada’s immigration system, expert guidance is essential. Maple Crest Immigration Law helps applicants understand complex policy changes and build strong cases for study, work, or permanent residence in Canada. Contact Maple Crest Immigration Law today for tailored legal support that improves your chances of success.
