Canada’s new immigration policies succeed in curbing population growth

Changes in immigration policy have all but halted Canada’s population growth, according to numbers released by Statistics Canada.

Between January 1, 2025, and April 1, 2025, Canada’s population increased by only 20,107 (or 0.0%).

The reduction in population growth was largely driven by a reduction in temporary and permanent resident admissions.

According to Statistics Canada, the number of temporary residents in Canada fell by 61,111 from January 1, 2025 to April 1, 2025.

This small a quarterly increase has not been seen since the third quarter of 2020, when the population dropped due to COVID-19 border restrictions (tied with the third quarter of 2014).

In contrast, Canada's population averaged a growth rate of 0.3% between the first quarter of 2001 to the first quarter of 2024.

Throughout 2024, the Canadian federal government embarked on a sustained program to reduce Canada’s temporary resident levels, citing as a rationale the increased pressure on housing, social services, and other infrastructure.

Below, we identify the measures the government has taken which have been driving the decrease in temporary resident population levels.

Immigration measures

There are several factors that are likely contributing to the slowing quarterly population growth reported by Statistics Canada.

Fewer temporary and permanent resident admissions

In October of 2024, the federal government announced that they would be reducing the number of permanent resident (PR) admissions in their 2025-27 Immigration Levels Plan.

In 2024, the permanent resident admissions target was 485,000, whereas the most recent Levels Plan highlights a PR admissions target of 395,000 for 2025.

This year’s Levels Plan also introduced temporary resident targets, with an overall target of 673,650 admissions for foreign workers and international student admissions.

The federal government has stated that it intends to reduce the number of temporary residents in Canada to 5% of the population by the end of 2026.

The first quarter of 2025 represents the sixth consecutive quarter of slowing population growth since these intended changes were announced.

Cap on study permit applications

Earlier this year, the federal government announced it would be capping study permit applications (for processing) at 550,162 for 2025 (from 22 January to 31 December).

The number of study permits it aims to issue is lower yet, at 437,000—which represents a 10% decrease from the 2024 cap.

Study permit caps are a relatively new immigration stabilization strategy, first introduced in 2024.

To implement this cap, Immigration, Refugees and Citizenship Canada (IRCC) introduced Provincial Attestation Letter (PAL) requirements for most study permits submitted on January 22, 2024, onward.

Moratorium on low-wage LMIAs

Certain Labour Market Impact Assessments (LMIAs) submitted from September 26, 2024, onward will no longer be processed by Employment and Social Development Canada (ESDC).

This change applies to the low-wage stream of the Temporary Foreign Worker Program (TFWP), and was announced in August of 2024.

Applications submitted with a wage below the provincial or territorial threshold or in a census metropolitan area (CMA) with a 6% or higher unemployment rate will not be processed.

The federal government releases a list of CMAs and their corresponding unemployment rate quarterly.

Without an LMIA, employers are unable to hire a foreign national through the TFWP—and a TFWP will not be permitted to renew their work permit.

Restricted eligibility for spousal open work permits

As of January 2025, the federal government announced that only spouses of certain international students and foreign workers can apply for an open work permit (OWP).

Spousal OWPs for spouses of international students have been restricted to the spouses of those enrolled in master's programs that are 16 months or longer in duration, doctoral programs, and certain select professional programs, such as nursing, engineering, and law.

Additionally, foreign workers must be working in Training, Education, Experience, and Responsibilities (TEER) 0 or 1 occupations, or select in-demand TEER 2 and 3 occupations for their spouse to be eligible for an OWP.

The foreign worker must have a work permit that will be valid for at least 16 months at the time their spouse applies for an OWP.

Post-Graduation Work Permit Eligibility restrictions

In 2024, IRCC changed the eligibility requirements for Post-Graduation Work Permits (PGWPs).

Effective November 1, 2024, international student graduates seeking PGWPs were required to meet certain field of study and language proficiency requirements—in addition to other criteria.

Unless an international student's study program is exempt, they must have graduated from a program linked to labour shortage market in order to be eligible for a PGWP, if they applied for their study permit after November 1, 2024.