Canada's Population Growth Slows Amid Immigration Crackdown

Canada's population growth in Q4 reached its slowest rate since the pandemic due to reduced immigration. Government policy changes announced by former Prime Minister Justin Trudeau are expected to further slow growth. Industry groups worry about potential economic impacts as immigration levels are adjusted downward.

Canada's population grew at its slowest pace since the pandemic's onset, as new data revealed a government-led crackdown on immigration is taking effect. In the fourth quarter ending December 31, the population rose by just 0.2% to 41.53 million, the slowest growth rate since 2020's fourth-quarter climb of 0.1%, according to Statistics Canada. This subdued growth is attributed to a diminished influx of non-permanent residents.

Once a haven for migrants, Canada now faces an affordability and housing crisis attributed in part to high immigration levels. In response to increasing public dissatisfaction, former Prime Minister Justin Trudeau last year announced measures likely to bring about a population contraction of 0.2% in both 2025 and 2026.

The revised immigration strategy plans for 395,000 new permanent residents in 2025, dropping to 380,000 in 2026 and 365,000 in 2027, down from the 485,000 targeted in 2024. Industry bodies have expressed concerns that reduced immigration could limit labor supply and dampen demand, particularly as U.S. trade tariffs already strain consumer and business confidence.