Canada experienced a decrease in its population last year, marking the first annual net decline since Confederation. Statistics Canada’s latest quarterly estimate revealed that the total population, including citizens, landed immigrants, and non-permanent residents, was 41,472,081 as of January 1, 2026. This reflected a 0.2% decrease, equating to over 102,000 fewer individuals compared to the previous year.
Despite a slight population increase of over 77,000 in the first half of the year, it was overshadowed by a decline of almost 180,000 in the latter half of 2025. Statistics Canada attributed this trend to a reduction in the number of non-permanent residents, which significantly impacted the overall population growth.
The agency highlighted that the number of non-permanent residents residing in Canada dropped from 3,149,131 on October 1, 2024, to 2,676,441 by January 1, 2026. Non-permanent residents encompass individuals with work or study permits, asylum claimants, and their accompanying family members.
According to a spokesperson for Statistics Canada, the agency has been monitoring Canada’s population growth since 1867. Prior to 1946, population growth data was recorded from June 1, shifting to January 1 since then. The agency noted that before 2025, there had never been a year with a population decrease in Canada.
The preliminary estimate cautioned that extensions of work and study permits might lead to significant updates in the future, potentially altering the reported population decrease. Statistics Canada advised interpreting the current data with caution, as more accurate administrative information could influence the final population figures in the coming months.
In response to the population decline, the Canadian government, led by former Prime Minister Justin Trudeau, initiated measures to reduce both permanent and temporary immigration following a surge in post-pandemic labor shortages. The government aimed to decrease the number of temporary residents by admitting only 385,000 in 2026, a 43% reduction from the 2025 target, with further reductions planned for 2027 and 2028. Additionally, the government planned to limit new permanent residents to 380,000 annually between 2026 and 2028, aligning with the revised immigration targets.
The decrease in the number of permanent immigrants in the last quarter of 2025, dropping from over 103,000 to just above 83,000, was consistent with the new immigration targets set by the federal government.