Canada’s Population Growth Slows Sharply Amid Stricter Immigration Policies
June 19, 2025 — Canada is seeing a dramatic shift in its population growth trajectory, as a result of newly implemented immigration policies aimed at reducing temporary and permanent resident admissions. Statistics Canada reports that between January 1 and April 1, 2025, the national population grew by only 20,107 people, translating to a virtually flat growth rate of 0.0%.
This marks one of the slowest quarterly growth rates in recent Canadian history, comparable only to the third quarter of 2020—when COVID-19 restrictions halted travel and migration—and the third quarter of 2014.
The data reflect a notable reversal from the country’s long-standing population growth trend. Between the first quarter of 2001 and the first quarter of 2024, Canada saw average quarterly growth of 0.3%. But since late 2023, the federal government has been actively scaling back temporary resident levels, citing concerns over the mounting strain on housing, healthcare, education, and infrastructure systems.
Policy Changes Behind the Decline
A closer look at recent federal immigration measures reveals a multi-pronged approach to limiting new admissions:
1. Reduced Permanent and Temporary Resident Admissions
In October 2024, Canada released its 2025–2027 Immigration Levels Plan, lowering the permanent resident (PR) target from 485,000 in 2024 to 395,000 in 2025.
More notably, for the first time, the plan included specific temporary resident targets—with 673,650 admissions allocated for foreign workers and international students combined.
The government also aims to reduce the temporary resident population to just 5% of Canada’s total population by the end of 2026.
2. Cap on Study Permit Applications
In a significant policy shift, Canada introduced a cap on the number of study permit applications it would process in 2025. The limit was set at 550,162 applications, with a goal of issuing no more than 437,000 permits—a 10% reduction compared to 2024.
To enforce this, the Provincial Attestation Letter (PAL) requirement was introduced in January 2024, making it harder for international students to apply without provincial backing.
3. Moratorium on Low-Wage Labour Market Impact Assessments (LMIAs)
As of September 26, 2024, Employment and Social Development Canada (ESDC) stopped processing low-wage LMIA applications in areas where unemployment exceeds 6%. This effectively limits employers’ ability to hire low-wage foreign workers in affected regions.
Without a valid LMIA, temporary foreign workers (TFWs) cannot obtain or renew their work permits under the Temporary Foreign Worker Program (TFWP).
4. Restrictions on Spousal Open Work Permits
Effective January 2025, eligibility for spousal open work permits (OWPs) has been narrowed significantly. Now, only spouses of:
- International students in master’s, doctoral, or certain professional programs (e.g., law, nursing, engineering)
- Foreign workers in TEER 0 or 1 occupations, or in-demand TEER 2 or 3 roles
can apply for an OWP, provided the principal applicant holds a work permit valid for at least 16 months at the time of application.
5. Tightened Eligibility for Post-Graduation Work Permits (PGWPs)
Starting November 1, 2024, PGWPs are no longer available to all international student graduates. Applicants must meet language and field-of-study criteria, and the program must be aligned with Canada’s labour market shortages.
Students who applied for a study permit after this date must ensure their academic program qualifies under the updated rules to be eligible for a PGWP.
Looking Ahead
With six consecutive quarters of declining population growth, Canada’s immigration landscape is undergoing a seismic transformation. While policymakers argue these changes are necessary to ensure sustainability, critics warn they may exacerbate labour shortages and reduce Canada’s global competitiveness in attracting talent.
The federal government insists the measures are temporary and subject to review, but for now, Canada is entering a period of managed migration unlike anything seen in recent decades.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
