Canada’s population experienced a decline last year, marking the first annual net decrease in residents since Confederation. According to the latest 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, showing a decrease of 0.2% or approximately 102,000 compared to January 1, 2025.
Although the population saw an increase of over 77,000 individuals in the first half of the year, it was outweighed by a decline of nearly 180,000 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 highlighted that Canada’s population growth has been monitored since 1867, with a change in tracking from June 1 to January 1 starting in 1946. The agency noted that prior to 2025, there had never been a year with a population decline in all the years of tracking.
The agency cautioned that the preliminary estimate should be viewed carefully as extensions of work and study permits may lead to significant updates in the following months. Therefore, the reported population decrease might change or even turn into an increase when more accurate administrative data becomes available.
Following a period of rapid post-pandemic labor shortages, the government, led by former Prime Minister Justin Trudeau, began reducing both permanent and temporary immigration. Measures were taken to decrease the share of temporary residents in Canada’s population. The current government announced in the fall budget that Canada would admit only 385,000 temporary residents in 2026, a 43% reduction from the 2025 target, with further decreases planned for 2027 and 2028.
Additionally, the budget outlined plans to limit the intake of new permanent residents to 380,000 annually between 2026 and 2028. The reduction in the number of permanent immigrants in the last quarter of 2025, aligning with the new government targets, decreased from over 103,000 to just above 83,000, as reported by Statistics Canada.