The government has greatly restricted the number of work and study permits issued to foreigners following an unpopular immigration boom during the pandemic.

The population of Canada has declined, driven by a drop in immigration, new census data shows, as the federal government tries to limit the number of international students allowed into the country.

Canada’s population now stands at just under 41.6 million people, decreasing by about 76,000 people, or 0.18 percent, over the last quarter, according to demographic estimates published Wednesday by Statistics Canada, the census agency. That follows nearly a year of virtually zero population growth, agency data shows.

The last time Canada’s population decreased on a quarterly basis was at the end of 2020, when border restrictions in response to the Covid-19 pandemic were in place.

The agency attributed the population decrease to a reduced number of arrivals of nonpermanent residents.

While the dip was small, it was the largest decline since 1946, as Canada, like much of Europe and Asia, struggles with falling birthrates and has become dependent on immigration for growth.

Canada has historically been known as a welcoming nation for its friendly approach to immigration. But economic hardships brought on by the pandemic and discontent over the persistently high cost-of-living has washed away much of the good will toward newcomers, and the Canadian government has moved to sharply curtail the number of international work and study permits it issues.

This tightening of rules allowing immigrants into Canada was part of the government’s backlash against the immigration policies under Canada’s former leader, Justin Trudeau.

Mr. Trudeau, aiming to address labor shortages and stimulate the economy, announced a plan in 2022 to allow in nearly 1.5 million immigrants between 2023 and 2025. About 1.2 million immigrants have been admitted into Canada during that period so far.

But the policy set off widespread complaints among many Canadians, who blamed immigration for straining overburdened public services, like health care, and driving up housing costs. Mr. Trudeau reversed course in October 2024, slashing immigration targets for 2026 and 2027.

Mr. Trudeau’s successor, Prime Minister Mark Carney, has continued reigning in immigration, with a goal of reducing the nonpermanent resident population, or as the government has taken to calling it, the “temporary population,” to less than 5 percent of the total population by 2027. It is currently about 6.8 percent, or 2.8 million people.

To achieve this, Canada’s immigration department is cutting the number of temporary residents, primarily workers and students, allowed to enter the country in the coming years.

The population dip is a stark reversal from immigration milestones hit in the later stages of the pandemic after border restrictions eased again, especially in 2023, when Canada grew by over one million people in a single year for the first time in its history because of newcomers.

The caps on foreigners have started to strain colleges and universities, which rely on the higher tuition fees paid by international students, and some business owners, who count on temporary worker programs for cheaper labor.

The new data show that foreign student permits issued by the government decreased by almost 74,000 between July and September, primarily in Ontario and British Columbia, the two most populous English-speaking provinces.

But as temporary resident numbers decline, demographic data shows that Canada has continued to receive more applications for asylum, which have increased more than threefold in 2025 to about 505,000 asylum seekers, up from 161,000 in 2022.

(http://www.autoadmit.com/thread.php?thread_id=5811521&forum_id=2.#49518004)