Canada reduces immigration to witness population decline in 2025, 2026

Key Takeaways

  • Canada’s population is expected to decline in 2025 and 2026 due to reduced immigration targets.
  • The 2025-2027 Immigration Levels Plan aims to result in a marginal population decline of 0.2 percent in both 2025 and 2026.
  • Canada’s population growth is expected to return to 0.8 percent in 2027 after a two-year decline.

Ottawa: The Canadian federal government announced an immigration levels plan on Thursday to pause population growth in the short term which will witness a population decline in 2025 and 2026.

Canada’s population has grown each year since 1867, primarily due to endless immigration.

Immigration, Refugees and Citizenship Canada said in a news release that the 2025-2027 Immigration Levels Plan is expected to result in a marginal population decline of 0.2 percent in both 2025 and 2026 before returning to a population growth of 0.8 percent in 2027.

These forecasts account for the announcement of reduced targets across multiple immigration streams over the next two years, as well as expected temporary resident outflows resulting from the 5 percent target, natural population loss and other factors, the release said.

For the first time ever, the levels plan includes controlled targets for temporary residents, specifically international students and foreign workers, as well as for permanent residents.

Canada’s population has grown in recent years, reaching 41 million in April 2024. In 2023, 98 percent of Canada’s population growth was attributed to immigration, with 60 percent of that growth coming from temporary residents.

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