Canada experienced a decrease in its population last year, marking the first annual net decline in residents since Confederation. According to the most recent quarterly estimate from Statistics Canada, the total population of citizens, landed immigrants, and non-permanent residents in Canada was 41,472,081 on January 1, 2026. This figure reflects a 0.2% decrease, equivalent to over 102,000 individuals, from January 1, 2025.
Statistics Canada reported that while the population grew by over 77,000 in the first half of the previous year, it was offset by a decline of nearly 180,000 in the latter half of 2025. The agency attributed the slowing population growth primarily to a reduction in the number of non-permanent residents.
The number of non-permanent residents in Canada decreased steadily 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.
A spokesperson for Statistics Canada mentioned that the agency has been monitoring Canada’s population growth since 1867. Never before 2025 had there been a year with a population decrease in all the years of tracking, which started on January 1 since 1946.
The government, led by former Prime Minister Justin Trudeau, initiated reductions in both permanent and temporary immigration following a surge in post-pandemic labor shortages. Before Prime Minister Mark Carney took office, efforts were already underway to decrease the proportion of temporary residents in Canada’s population.
In the recent budget, the Carney administration announced plans to admit only 385,000 temporary residents in 2026, a 43% reduction from the 2025 target, and 370,000 in 2027 and 2028. Additionally, the government set a cap on new permanent residents at 380,000 annually between 2026 and 2028.
Statistics Canada noted that the decrease in the number of permanent immigrants in the last quarter of 2025 aligns with the Liberal government’s revised immigration targets. The agency cautioned that the preliminary population estimate should be interpreted carefully, as extensions of work and study permits could lead to significant updates in the upcoming months, potentially altering the reported population decrease.