Canada experienced a population decline last year, marking the first instance of a net decrease in residents since Confederation. According to the most recent quarterly estimate from Statistics Canada, the total population of citizens, landed immigrants, and non-permanent residents in Canada was 41,472,081 as of January 1, 2026, representing a 0.2% decrease, equivalent to over 102,000 individuals, compared to the previous year.
Statistics Canada reported that although the population saw a growth of over 77,000 individuals in the first half of the year, this increase was overshadowed by a decline of nearly 180,000 in the latter half of 2025. The agency attributed the slowdown in population growth primarily to a decrease in the number of non-permanent residents.
The number of non-permanent residents living in Canada declined steadily from 3,149,131 on October 1, 2024, to 2,676,441 on January 1, 2026. Non-permanent residents encompass individuals holding work or study permits, asylum claimants, and their accompanying family members.
Statistics Canada emphasized the preliminary nature of the estimate, cautioning that extensions of work and study permits could lead to significant updates in the upcoming months. Consequently, the reported population decrease might vary or even transform into an increase as more precise administrative data becomes accessible.
The government, led by former Prime Minister Justin Trudeau, initiated reductions in both permanent and temporary immigration levels following a surge in post-pandemic labor shortages. Prior to Prime Minister Mark Carney assuming office, the Liberal government had already begun efforts to decrease the proportion of temporary residents in Canada’s population.
In the recent budget announcement, the Carney administration disclosed plans to admit only 385,000 temporary residents in 2026, a 43% reduction from the 2025 target, and 370,000 in 2027 and 2028. The government also outlined intentions to cap the intake of new permanent residents at 380,000 annually between 2026 and 2028.
Statistics Canada highlighted a decline in the number of permanent immigrants in the final quarter of 2025, dropping from over 103,000 to slightly above 83,000, aligning with the newly set targets by the Liberal government.