Canada’s Population Growth Slows Sharply Due To Immigration Cuts

Canada’s population growth has taken a noticeable dip. From April 1 to July 1, 2025, the population rose by only 47,098 people. That’s just 0.1% growth—the slowest second-quarter increase since 2020, when the pandemic nearly halted growth altogether.

This slowdown reflects new federal immigration policies put in place to manage population growth.

New Immigration Rules in Effect

In 2024, the federal government introduced several changes aimed at reducing the number of newcomers entering Canada. These include:

• A cap on study permit applications
  
• Stricter rules for work permits
  
• A 20% cut to permanent resident admissions
  
• New targets for temporary resident entries
  

By 2025, these changes began to show real effects in population data.

Sharp Drop in Immigration-Driven Growth

In the second quarter of 2025, immigration accounted for 71.5% of total population growth. That’s a big drop compared to the same time last year, when immigration made up 95.3% of population growth.

Permanent residents made up the bulk of new arrivals this year. Meanwhile, the number of non-permanent residents (such as international students and temporary workers) has fallen sharply.

Non-Permanent Residents Continue to Decline

The number of non-permanent residents in Canada dropped for the third straight quarter. By July 1, 2025, there were 3,024,216 non-permanent residents—about 7.3% of the total population. That’s down from 7.6% in October 2024.

Here’s how different categories were affected between April and July:

• Study permit holders only: down 32,025
  
• Work permit holders only: down 19,637
  
• Holders of both permits: down 19,072
  

The government introduced new policies in 2024 to help reduce these numbers. These included:

• Limiting study permit applications
  
• Pausing low-wage job permits in cities with high unemployment
  
• Tightening spousal work permit rules
  
• Changing eligibility for post-graduation work permits
  

Long-Term Plan to Reduce Temporary Residents

The government’s Immigration Levels Plan 2025–2027 includes the first-ever targets for temporary residents. The goals are:

• 673,650 in 2025
  
• 516,600 in 2026
  
• 543,600 in 2027
  

The goal is to bring temporary residents down to 5% of the population by the end of 2026. Officials hope this will ease pressure on housing, healthcare, and other public services.

Big Drops in New Arrivals This Year

So far in 2025, new arrivals are down sharply compared to last year. Between January and July 2025, Canada welcomed:

• 98,070 fewer students
  
• 137,000 fewer workers
  

In July 2025 alone, student arrivals fell by 55% and worker arrivals by 37%, compared to July 2024.

These figures show the federal policies are having a clear impact.