Canada Records First Decline in Foreign Worker and Student Population in Years
For the first time in several years, Canada has experienced a year-over-year decline in the total number of temporary residents, including international students and foreign workers. This shift marks a notable turning point after years of rapid growth driven by labour shortages and international student intake.
Between 2024 and 2025, Canada recorded a net reduction of 14,954 temporary residents. Although the decline appears modest in absolute numbers, it represents a major policy reversal when compared to the sharp increase of over 780,000 non-permanent residents seen between 2023 and 2024.
A Sharp Contrast to Recent Growth Trends
Prior to the implementation of stricter immigration controls, Canada had been adding temporary residents at an unprecedented pace. The most recent figures show that this trend has reversed, reflecting the impact of tighter eligibility rules, reduced permit validity periods, and caps on study permits.
While new arrivals have slowed since 2024, the effect on overall numbers has taken time to materialize, as many temporary residents only encounter these restrictions when attempting to renew or extend their permits.
Large Cities See the Biggest Declines
The decrease in temporary residents has been most pronounced in Canada’s largest metropolitan areas. Major population centres experienced a combined net loss exceeding 20,000 temporary residents, with Ontario, British Columbia, and Manitoba recording the steepest declines.
Toronto alone accounted for a reduction far greater than the national net decrease, indicating that losses in large cities were partially offset by gains elsewhere.
Metropolitan areas with the largest net decreases:
- Toronto, Ontario
- Vancouver, British Columbia
- Kitchener–Cambridge–Waterloo, Ontario
- London, Ontario
- Hamilton, Ontario
- Winnipeg, Manitoba
These declines reflect the cumulative impact of higher housing costs, labour market changes, and stricter immigration policies.
Growth Shifts Toward Quebec and Alberta
In contrast, several regions experienced growth in temporary resident numbers, particularly in Quebec and Alberta. These provinces saw increased inflows of students and workers, likely due to targeted provincial programs, labour demand, and relatively lower living costs compared to Canada’s largest cities.
Metropolitan areas with net gains:
- Montréal, Quebec
- Calgary, Alberta
- Edmonton, Alberta
- Ottawa–Gatineau
- Windsor, Ontario
- Saskatoon, Saskatchewan
Smaller population centres across Canada also recorded modest overall growth, suggesting a redistribution of temporary residents rather than a uniform decline nationwide.
Emigration Also Contributes to Lower Numbers
Between 2024 and 2025, more than 120,000 people emigrated from Canada. This outflow further contributed to the net decrease in temporary residents, compounding the effects of reduced admissions and stricter renewals.
Policy Changes Driving the Decline
The federal government introduced multiple policy changes between 2024 and 2025 aimed at slowing the growth of temporary residents. These measures have directly affected both international students and foreign workers.
Key policy changes include:
- Suspension of low-wage LMIA processing in regions with higher unemployment rates
- Reduction of maximum work permit validity under the low-wage TFWP stream
- Increase in wage thresholds for high-wage TFWP positions
- Narrowing eligibility for spousal open work permits
- Introduction of language and field-of-study requirements for PGWP eligibility
- Removal of PGWP eligibility for certain public-private college programs
- Elimination of COVID-era pathways that allowed visitors to transition to work permits
- End of same-day permit processing at ports of entry
- National cap on study permits for 2025, reducing overall intake
- Introduction of Provincial or Territorial Attestation Letters for most new international students
Together, these measures have significantly reshaped Canada’s temporary immigration landscape.
What This Shift Signals Going Forward
The decline in foreign workers and students suggests a deliberate recalibration of Canada’s immigration system. While the country continues to rely on temporary residents to support its economy, the focus has shifted toward tighter controls, regional balance, and long-term sustainability.
As these policies continue to take effect, further adjustments in where and how temporary residents settle in Canada are expected.
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