The latest data from Statistics Canada shows that Canada’s population growth almost stagnated in the second quarter of this year, increasing by only47,098people, a growth rate of only0.1%. This figure is the same as in the first quarter of this year, setting a new low in recent years.
Canada’s current total population is 41.65 million. In comparison, between 2021 and 2024, Canada’s population experienced rapid growth, with an average quarterly increase of 217,000 people over three years. The main reason for the stagnation in population growth is the outflow of non-permanent residents. The number of temporary residents fell by nearly 60,000 between April 1 and July 1 this year. This is the highest number of temporary residents leaving the country since the start of the COVID-19 pandemic, matched only by the third quarter of 1971.
The change stems from immigration restrictions implemented by the federal government last year. The influx of international students and temporary foreign workers into Canada between 2021 and 2024 has sparked concerns about housing shortages and rising living costs, putting pressure on the federal government to limit the influx of non-permanent residents.
To address this issue, the government introduced a series of policy adjustments in 2024, with the goal of limiting the number of temporary residents to less than 5% of the total population by the end of 2026. These measures are gradually taking effect. In October 2024, the number of temporary residents reached 7.6% of the total population, but has now fallen to 7.3%, or about 3 million people. So far this year, there has been a net outflow of approximately 120,000 non-permanent residents from Canada. The impact has been particularly pronounced among international students, with the number of international students holding study permits falling by 32,025 between April and July. This represents a drop of nearly 18% in the past year alone. However, the decline in the total number of temporary residents was mitigated somewhat by an increase in the number of asylum seekers, which has risen by 25 per cent since July 2024.
The demographic shift has also had another impact: Canada’s aging population is resurfacing. Over the past year, the median age of the Canadian population has risen from 40.3 to 40.6 years. It is worth noting that the aging trend of the population was once alleviated due to the influx of many young new immigrants between 2021 and 2024. However, this trend has reappeared as the number of young immigrants has decreased.
The statistics reflect the direct effects of Canada’s immigration policy adjustments. The government’s measures to ease housing and living cost pressures by limiting the number of temporary residents is producing the desired results, but they also bring new challenges from slowing population growth and a changing age structure.
This sharp change in population growth marks the end of Canada’s rapid population expansion in recent years and the beginning of a new phase of more stable but slower growth.