Canada’s Population Growth Slows as Temporary Resident Numbers Decline

Decline in Temporary Residents Contributes to Slower Population Growth in 2024

Canada’s population growth has significantly slowed, largely due to a drop in the number of temporary residents, such as international workers and students, as well as a decrease in new work and study permits. The country’s total population now stands at 41.5 million, with a noticeable slowdown in population growth during the latter half of 2024.

Temporary Residents’ Inflow Slows in the Final Quarters of 2024

Canada had seen a rapid rise in its temporary resident population earlier in 2024, thanks to an increase in foreign students and workers arriving in the first two quarters. However, by the third and fourth quarters, this growth slowed substantially. In total, Canada’s temporary resident population grew from 2.7 million at the beginning of the year to 3.02 million by January 1, 2025. This increase of 291,165 people is significantly smaller compared to the growth seen throughout 2023.

Between October 1, 2024, and January 1, 2025, Canada saw a net loss of 28,341 temporary residents as more people departed the country. The total population gain for Canada in 2024 was 744,324 people—still an increase, but notably lower than the population gains in 2022 and 2023. The lower growth rate marks a reversal from the rapid population increases Canada had experienced in recent years.

Changes in Asylum Claimants and Foreign Workers

Despite the reduction in temporary residents, certain groups helped offset the decline. The number of asylum claimants, protected persons, and similar groups grew by 25,774, reaching a record-high total of 457,285 people by the end of 2024. However, the number of international students and foreign workers declined over the same period. Study permit holders decreased by 32,643, while work permit holders dropped by 18,435.

Regional Population Trends Across Canada

On a provincial level, Canada’s Atlantic provinces saw small population decreases in the last quarter of 2024. Newfoundland and Labrador lost 301 temporary residents, while Prince Edward Island and Nova Scotia saw smaller losses of 21 and 50 people, respectively. However, New Brunswick did not report any losses during this time.

In contrast, the prairie provinces of Alberta, Saskatchewan, and Manitoba saw slight population increases, with Alberta leading the way with a 0.6% rise in its population. Northern regions like Yukon and Nunavut also recorded growth of 0.4%, while the Northwest Territories experienced a smaller 0.3% increase.

Canada’s Immigration Policy Adjustments to Curb Temporary Resident Numbers

Starting in December 2023, Canada’s immigration department, Immigration, Refugees, and Citizenship Canada (IRCC), began implementing a series of policies aimed at reducing the number of temporary residents, also referred to as Non-Permanent Residents (NPRs). These measures were driven by the growing concerns over housing affordability and overall population pressure. The Canadian government sought to slow down population growth to better align with available housing stock.

The government’s 2025-2027 Immigration Levels Plan highlighted that immigration accounted for nearly 100% of population growth in Canada, with 60% of that growth attributed to temporary residents. Consequently, the IRCC began to target both international students and foreign workers with a series of new policies, including:

• Setting specific caps on the number of temporary residents allowed under the Immigration Levels Plan.
• Tightening eligibility criteria for Post-Graduation Work Permits (PGWPs), including adding requirements for fields of study and language proficiency.
• Raising the financial support requirements for study permits.
• Limiting the number of study permit applications that could be processed.
• Freezing Labour Market Impact Assessment (LMIA) processing for low-wage jobs in metropolitan areas with unemployment rates over 6%.
• Increasing wage requirements for high-wage workers under the Temporary Foreign Worker Program (TFWP).
• Tightening rules for Intra-Company Transfers and making it harder for foreign nationals from certain countries, including Mexico, to enter Canada.

Why Immigration Is Critical to Canada’s Future

Canada’s immigration policies play a critical role in the country’s economic stability and demographic structure. Like many countries in North America and Europe, Canada faces the dual challenge of an aging population coupled with low birth rates, which leaves the country with insufficient workers to sustain its economy.

Without immigration, Canada would struggle to replenish its aging workforce and meet the demands of key sectors like healthcare and construction, which have long faced persistent labor shortages. Immigration not only fills these gaps but also generates taxable income that funds crucial public services, including pensions and healthcare.

The Canadian government has emphasized the importance of immigration in maintaining economic growth. Former Immigration Minister Marc Miller noted that immigration was essential in preventing a recession following the COVID-19 pandemic, with newcomers playing a key role in supporting the labor market.

Conclusion: Canada’s Ongoing Immigration Strategy

While Canada’s overall population growth has slowed, immigration continues to be a cornerstone of the country’s demographic and economic strategy. The recent adjustments to immigration policies reflect the government’s efforts to balance population growth with the availability of housing and other resources. As Canada continues to grapple with an aging population and labor shortages, immigration will remain a key driver of the country’s future economic and social well-being.

For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!