Canada has recorded its steepest population decline in nearly eight decades, marking a dramatic shift for a country long defined by steady growth through immigration. Official data shows the population fell by roughly 76,000 people over a three month period, a rare contraction outside pandemic years.
The decline is being driven largely by a sharp reduction in temporary residents, particularly international students and short term foreign workers. Numbers in these categories dropped by more than 170,000, reflecting tighter immigration controls introduced over the past year.
International student arrivals have fallen significantly after the federal government imposed caps on study permits and introduced stricter eligibility rules. The move was aimed at easing pressure on housing, healthcare, and public services, especially in major cities that have struggled to keep pace with rapid population growth.
While permanent immigration remains relatively stable, it has not been enough to offset the decline in temporary residents. Economists say this shift has tipped Canada into a net population loss for the first time in years, signalling a turning point in demographic trends.
The impact is being felt unevenly across the country. Provinces such as Ontario and British Columbia have reported the largest drops, while a few regions, including Alberta, have continued to see modest growth. Universities, rental markets, and local businesses that depend heavily on student populations are already feeling the effects.
Government officials have indicated that the policy changes are intentional and part of a broader plan to reduce reliance on temporary migration, with a long term goal of keeping such residents to a smaller share of the total population. However, critics warn that abrupt reductions could affect labour supply, economic growth, and Canada&rsquo;s global reputation as a welcoming destination.
As the country approaches its next census cycle, analysts say the coming months will be closely watched. Whether this decline proves temporary or signals a lasting demographic reset will depend on how Canada balances economic needs with public pressure to rein in immigration.

Canada Sees Sharpest Population Drop in 80 Years

Fall in international students and temporary migrants drives rare population decline

Canada Sees Sharpest Population Drop in 80 Years

Fall in international students and temporary migrants drives rare population decline

December 18, 2025 | 21:56 IST