Canada's population shrinks for third consecutive quarter
Temporary residents dropped by 118,000 in Q1 2026; federal goal targets 5% of population by end of 2027.
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Canada's population fell by approximately 55,000 people in the first quarter of 2026, marking the third consecutive quarterly decline driven by the federal government's efforts to reduce temporary residents.
As of April 1, 2026, Canada's population stood at 41.4 million people—down from 41.6 million a year earlier. The number of temporary residents decreased by roughly 118,000 people in Q1 2026, a 4.4 per cent decline over three months, bringing the total to 2.56 million, or 6.1 per cent of the total population. Temporary residents had peaked at 3.15 million (7.6 per cent of population) in late 2024.
Canada saw significant population growth between 2022 and 2024 when the previous Liberal government sought to fill job openings as pandemic restrictions eased. That influx faced backlash from residents linking newcomers to housing affordability and other concerns.
While Justin Trudeau's government initially resisted changing immigration policies, it eventually introduced adjustments in 2024 and 2025 that made it harder for international students and temporary foreign workers to arrive and stay.
The federal government is now targeting temporary residents at 5 per cent of the total population by the end of 2027. The recent quarterly declines directly reflect those new immigration goals.
Statistics Canada warned that the temporary resident figures are estimates and forecast there could be "more pronounced upward changes" in months ahead. The agency cited rapidly shifting migration policies and lengthened processing times at the immigration department as reasons for revised estimates.
Permanent resident admissions also declined significantly in Q1 2026. Approximately 83,149 people were granted permanent residency between January and April 2026, a drop of 20.2 per cent compared with the same quarter in 2025. The federal government's current annual target for permanent resident admissions is 380,000 people, or just under 1 per cent of the total population.
Economists have noted that reduced immigration targets are dragging on economic growth. Sustained improvement in economic growth would require stronger productivity, higher labour force participation, and increased hours worked, according to analysts at the C.D. Howe Institute.