Canada Immigration Update: TR Numbers Drop for First Time

Canada Sees First Decline in Temporary Residents in Years: What’s Behind the Drop?

For the first time in years, Canada is seeing fewer temporary residents—specifically international students and foreign workers—living in the country. This surprising shift comes after a long stretch of growth in temporary immigration, and it’s sparked conversation about what’s changed and why it matters.

Key Highlights

• Canada experienced a net decrease of nearly 15,000 temporary residents between 2024 and 2025
• Major metropolitan areas like Toronto and Vancouver saw the steepest declines
• Smaller population centres and some provinces like Alberta and Quebec saw modest increases
• New government policies and permit restrictions are limiting renewals and new arrivals
• International students and low-wage temporary workers face stricter eligibility criteria
• The overall drop signals a significant policy shift in Canada’s approach to temporary immigration

Why Canada’s Temporary Resident Numbers Are Dropping

Canada has long been known for its welcoming immigration policies, especially for international students and skilled workers. But between 2024 and 2025, the country saw a reversal in this trend, with a net loss of 14,954 temporary residents (TRs). That’s a big change compared to the previous year, when Canada added over 780,000 non-permanent residents.

So, what’s going on? Much of this change stems from new immigration policies meant to tighten control over the volume of temporary residents. These measures were introduced to manage housing pressures, labour market concerns, and strain on public services. While the overall number may seem small at first glance, it represents a major policy pivot.

Where Are Temporary Residents Leaving From?

The biggest declines in TR numbers were seen in Canada’s largest urban centres. Here’s a breakdown of the top regions with net losses:

Toronto took the biggest hit, with nearly 45,000 fewer temporary residents in the past year alone—more than triple the national net decrease. Ontario, British Columbia, and Manitoba saw the steepest losses, with some exceptions like Quebec and Alberta, which actually welcomed more TRs.

It’s important to note that these numbers reflect the total number of TRs living in Canada, not just new arrivals. So while new applications have already been slowing since 2024, we’re only just beginning to see the full impact as people try to renew or extend their permits under stricter rules.

Which Regions Are Gaining Temporary Residents?

Not all regions saw a decline. In fact, some areas, especially in Alberta and Quebec, saw their temporary resident numbers grow:

This suggests that while heavily populated hubs like Toronto and Vancouver are losing TRs, smaller cities and provinces with lower costs of living and growing job markets are becoming more attractive for newcomers.

Policy Changes Driving the Decline

The drop in TRs isn’t random—it’s directly tied to several federal immigration policy changes introduced over the past year. Here are some of the major updates that are making it tougher for foreign workers and students to stay or come to Canada:

1. LMIA and TFWP Restrictions

• Low-wage LMIA moratorium: Applications under the low-wage Labour Market Impact Assessment stream are no longer processed in regions with unemployment above 6%.
• Shorter work permits: The maximum duration for low-wage TFWP permits dropped from two years to just one.
• Higher wage thresholds: Employers must now offer 20% above the regional median to qualify for the high-wage TFWP stream.

2. Spousal Work Permit Limitations

• Open work permits for spouses are now only available for certain applicants, including those with high-skilled jobs or studying in master’s or doctoral programs.

3. Tightened Post-Graduation Work Permit (PGWP) Rules

• Language and program-specific eligibility criteria introduced for PGWPs
• Graduates of public-private college programs are no longer eligible

4. Removal of COVID-Era Flexibility

• The policy allowing visitors in Canada to apply for work permits was repealed in August 2024

5. Ban on Flag Poling

• Same-day processing of permits at the border (known as flag poling) is now prohibited

6. Study Permit Cap for 2025

• IRCC introduced a national cap, limiting study permits to 437,000 in 2025—a 10% drop from the year before
• New students must also obtain a Provincial Attestation Letter (PAL)

These changes are aimed at managing the growing pressure on Canada’s infrastructure and economy but have also made it tougher for temporary residents to settle or stay long-term.

What This Means for Immigration Going Forward

Canada’s shift in immigration strategy—particularly around temporary residents—marks a new chapter. While permanent immigration targets remain ambitious, the federal government is clearly trying to curb short-term influxes of students and workers until infrastructure and housing catch up.

If you’re considering moving to Canada through a work permit or as an international student, it’s more important than ever to stay informed and plan ahead. You might also explore alternative pathways to permanent residency, such as provincial nominee programs. For example, Manitoba offers an excellent route through the Manitoba PNP.

Final Thoughts

Canada’s first decline in temporary residents in years is more than just a statistic—it’s a reflection of shifting policy, evolving priorities, and growing pressures at home. While the road ahead may be more complex for newcomers, opportunities still exist for those willing to adapt and navigate the new rules.

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