Canada Immigration News: 2025 Policy Changes Impact Growth

Canada’s Population Growth Stalls Amid Major Immigration Policy Changes

Key Highlights

• Canada’s population increased by only 0.0% in Q1 2025 — the slowest growth since 2020.
• Temporary resident numbers dropped by over 61,000 between January and April 2025.
• The federal government introduced stricter caps and eligibility changes for international students and foreign workers.
• New policies include capping study permit applications, restricting spousal open work permits, and halting some low-wage LMIA applications.
• Permanent resident targets were also lowered for 2025, dropping from 485,000 to 395,000.
• These changes are part of a broader plan to reduce temporary residents to 5% of Canada’s total population by 2026.

Canada’s Population Growth Slows to a Crawl

Canada’s population barely budged in the first three months of 2025, growing by just 20,107 people—effectively a 0.0% increase. New numbers from Statistics Canada confirm what many immigration watchers have already suspected: the federal government’s recent immigration policy shift is having a major impact.

From January 1 to April 1, 2025, the number of temporary residents in the country actually dropped by more than 61,000. That’s a significant turnaround compared to previous years, especially considering that from 2001 to 2024, Canada’s population grew at an average rate of 0.3% per quarter.

So, what’s behind this dramatic slowdown? Let’s break it down.

Why Is Canada’s Population Growth Slowing?

Throughout 2024 and into 2025, the Government of Canada began rolling out a series of policy changes aimed at reducing the number of temporary residents in the country. These changes were largely motivated by concerns over housing shortages, strained social services, and other infrastructure pressures.

The first quarter of 2025 marks the sixth consecutive quarter of declining growth in the temporary resident population — and the impact is now clearly visible in national growth figures.

1. Lower Permanent Resident Targets

In October 2024, the federal government released its new 2025–2027 Immigration Levels Plan. One of the biggest takeaways? A notable reduction in the annual permanent resident (PR) admissions target.

For 2024, the PR target was 485,000. But for 2025, that number is being scaled back to 395,000. That’s nearly 100,000 fewer new permanent residents expected to arrive this year.

This reduction alone has a major impact on overall population figures, but it’s only one piece of the puzzle.

2. New Targets for Temporary Residents

For the first time, the federal government introduced explicit targets for temporary resident admissions — including international students and foreign workers. In total, the plan aims for 673,650 temporary resident admissions in 2025.

The government has also committed to reducing the number of temporary residents to 5% of Canada’s total population by the end of 2026. That’s a big shift, especially considering how much the country has relied on temporary residents to fill labour shortages and support the economy in recent years.

3. Cap on Study Permits

Another major change came in January 2025, when the federal government capped the number of study permit applications it would process for the year at 550,162. The actual number of permits expected to be issued is even lower—437,000—representing a 10% drop from 2024.

To manage the cap, Immigration, Refugees and Citizenship Canada (IRCC) also introduced a requirement for a Provincial Attestation Letter (PAL) for most new study permit applications. This added administrative step makes it trickier for students to apply and limits the number of permits issued.

4. Moratorium on Low-Wage LMIAs

As of late September 2024, Employment and Social Development Canada (ESDC) stopped processing Labour Market Impact Assessments (LMIAs) for low-wage jobs in cities with an unemployment rate of 6% or higher.

This change affects employers looking to hire through the Temporary Foreign Worker Program (TFWP), particularly in regions already facing economic challenges. Without a valid LMIA, employers can’t hire new foreign workers, and current workers can’t renew their work permits.

This move has likely contributed to the significant drop in the number of active temporary foreign workers in Canada.

5. Restrictions on Spousal Open Work Permits

In January 2025, IRCC also tightened eligibility for spouses of international students and foreign workers seeking open work permits (OWPs).

Now, only spouses of students enrolled in master’s or doctoral programs (or certain professional programs like nursing or law) can apply. For foreign workers, the primary applicant must be working in a TEER 0 or 1 occupation—or a select in-demand TEER 2 or 3 role—and have a valid work permit for at least 16 months.

These stricter rules have reduced the number of family members accompanying international students and workers, further slowing population growth.

6. Tougher Post-Graduation Work Permit (PGWP) Requirements

In late 2024, IRCC added more restrictions to PGWP eligibility. International students who applied for a study permit after November 1, 2024, must now graduate from a program that aligns with Canada’s labour market needs to qualify for a PGWP.

Language requirements and other academic criteria have also been tightened, limiting the number of graduates who can stay and work in Canada after finishing their studies.

What Does This Mean for Immigration in Canada?

For years, immigration has been a key driver of population growth in Canada. But with these new policies in place, that trend is slowing—at least for now.

While the aim is to ease pressure on housing and public services, the slowdown could also have ripple effects across the economy, especially in sectors that rely on international talent.

If you’re considering immigrating to Canada or sponsoring someone through one of the country’s many programs, it’s more important than ever to stay informed about the latest immigration updates.

Looking to move to Manitoba?

The Manitoba Provincial Nominee Program (MPNP) remains an excellent option for skilled workers. Check your eligibility using our free MPNP points calculator.

Final Thoughts

Canada’s immigration system is evolving quickly. With new goals to reduce the temporary resident population and stricter eligibility rules across the board, it’s clear the federal government is taking a more cautious approach to growth.

This shift may be temporary, or it may signal a long-term change in how Canada balances population growth with infrastructure capacity. Time will tell — but for now, keeping up with policy changes is key if you’re planning your immigration journey.

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