Canada experienced a decline in its population last year, marking the first annual decrease in residents since Confederation. According to the latest quarterly estimate from Statistics Canada, the total population of citizens, landed immigrants, and non-permanent residents in Canada was reported at 41,472,081 as of January 1, 2026. This figure showed a decrease of 0.2 percent, equivalent to over 102,000 individuals compared to the previous year.
While the population saw an increase of over 77,000 people in the first half of the year, it was not sufficient to offset the decline of nearly 180,000 in the latter half of 2025. Statistics Canada attributed the slowing population growth primarily to a decrease in the number of non-permanent residents living in the country.
The agency highlighted that the count of non-permanent residents dropped from 3,149,131 on October 1, 2024, to 2,676,441 on January 1, 2026. Non-permanent residents encompass individuals with work or study permits, asylum claimants, and their accompanying family members.
Statistics Canada, which has been monitoring Canada’s population growth since 1867, emphasized that prior to 1946, population growth data was recorded starting on June 1, and since then, it has been tracked from January 1. The agency noted that until 2025, there had never been a single year displaying a population decrease.
The preliminary estimate cautioned that extensions of work and study permits could lead to significant updates in the forthcoming months, potentially altering the reported population decrease. The agency advised that more accurate administrative data would be available in the future, which might result in revisions to the population figures.
The government, under 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 assumed office, the Liberal government had already started efforts to decrease the proportion of temporary residents in Canada’s population.
In the recent budget, the Carney administration announced plans to admit 385,000 temporary residents in 2026, a decrease of approximately 43% from the previous year, with further reductions to 370,000 in 2027 and 2028. Additionally, the budget outlined that the intake of new permanent residents would be capped at 380,000 annually between 2026 and 2028.
Statistics Canada observed a decline in the number of permanent immigrants in the last quarter of 2025, aligning with the new immigration targets set by the Liberal government.