Canada experienced a decline in population last year, marking the first annual decrease in residents since Confederation. Statistics Canada’s latest quarterly estimate revealed that as of January 1, 2026, the total population of citizens, landed immigrants, and non-permanent residents in Canada was 41,472,081, which was a 0.2% decrease from the previous year, equating to over 102,000 fewer individuals.
While the population saw a slight increase of over 77,000 people in the first half of the year, it was outweighed by a decline of nearly 180,000 individuals in the latter half of 2025. Statistics Canada attributed the slowing population growth primarily to a decrease in the number of non-permanent residents.
The agency reported that the number of non-permanent residents in Canada decreased from 3,149,131 on October 1, 2024, to 2,676,441 on January 1, 2026. Non-permanent residents include individuals with work or study permits, asylum claimants, and their accompanying family members.
Statistics Canada noted that this preliminary estimate should be interpreted cautiously, as extensions of work and study permits could lead to significant updates in the future, potentially altering the reported population decrease. The agency emphasized that more accurate administrative data could influence the final population figures in the coming months.
The government, led by former Prime Minister Justin Trudeau, initiated a reduction in both permanent and temporary immigration following a surge in post-pandemic labor shortages. Before Prime Minister Mark Carney assumed office, the Liberal government had already begun efforts to decrease the proportion of temporary residents in the country’s population.
In the recent budget announcement, the government outlined plans to admit only 385,000 temporary residents in 2026, a 43% reduction from the 2025 target, with further decreases to 370,000 in 2027 and 2028. Additionally, the federal government aims to cap the intake of new permanent residents at 380,000 annually between 2026 and 2028.
The decrease in the number of permanent immigrants in the last quarter of 2025, dropping from over 103,000 to just above 83,000, aligns with the new immigration targets set by the Liberal government.
