Canada experiences its first population decline in decades 

For the first time in recent history, Canada's population declined, dropping by 76,068 people in the third quarter of 2025 to 41,575,585 as of October 1. Statistics Canada's preliminary data reveals that this 0.2% decrease marks a significant shift from the country's sustained growth pattern. The decline stems primarily from a substantial reduction in non-permanent residents, reflecting new government measures to manage temporary residency programs. Ontario and British Columbia experienced the steepest drops at 0.4% and 0.3%, respectively, while only Alberta and Nunavut maintained modest growth of 0.2% each during this period.
The reduction of 176,479 non-permanent residents represents the largest quarterly decrease since records began in 1971, driven by record-high permit expirations of 339,505 against only 163,026 new permits issued. By October 1, non-permanent residents numbered 2,847,737, comprising 6.8% of the total population – down from 7.3% just three months earlier. This marks a dramatic reversal from October 2024's peak of 3,149,131 non-permanent residents. Ontario saw the largest provincial decline with 107,280 fewer temporary residents, followed by British Columbia, Quebec, and Alberta, signalling the tangible effects of revised federal immigration policies.

Canada reports a major decline in international student and temporary worker arrivals 

Canada's efforts to manage temporary migration are showing tangible results, with new data revealing a significant drop in international student and temporary worker arrivals. According to IRCC, the country welcomed 53% fewer new arrivals between January and October 2025 compared to the same period in 2024 – a reduction of more than 323,000 individuals. This downward trend reflects the government's commitment to addressing housing shortages and easing pressure on infrastructure and services, which aims to reduce the temporary resident population to below 5% while maintaining sustainable immigration levels.
The decline was particularly pronounced among international students, with October 2025 seeing just 3,030 new study permit holders – a 60% decrease from the previous year. Government measures, including annual caps on study permits introduced in 2024 and strengthened program requirements, have been instrumental in achieving these reductions. Similarly, temporary worker arrivals dropped by 48%, with only 14,585 new work permits issued in October 2025. Reforms to the Temporary Foreign Worker Program (TFWP), including wage thresholds and regional unemployment considerations, have prioritized job opportunities for Canadians and newcomers already in the country. Despite these reductions, Canada continues to support pathways to permanent residence for well-integrated temporary residents, with nearly 168,000 transitioning to permanent residence in the first 10 months of 2025.

Ottawa temporarily suspends Home Care Worker Immigration Pilot applications

IRCC announced on December 19, 2025, that it will pause new applications for the Home Care Worker Immigration pilots indefinitely. The decision aims to align immigration intake with current labour market demand while managing application backlogs. The pilots have seen overwhelming interest from workers who provide critical care to seniors, children, and individuals with disabilities, resulting in available spaces significantly outpacing demand and creating extended processing times for applicants.
The pause means the pilot program will not reopen for new applications in March 2026 as previously scheduled. However, IRCC has committed to continuing the processing of all applications already submitted, ensuring existing applicants remain in the queue. While officials acknowledge the disappointment this will cause for prospective applicants and their families, the temporary suspension is intended to prevent further inventory buildup and help restore immigration levels to more sustainable numbers.

IRCC to stop accepting new applications under the Start-Up Visa Program

Immigration, Refugees and Citizenship Canada (IRCC) announced sweeping changes to its business immigration pathways on December 19, aligning with the country's 2026-2028 Immigration Levels Plan. Starting immediately, the agency has closed applications for optional work permits under the Start-Up Visa Program, with exceptions only for current permit holders in Canada seeking extensions. The government is now prioritizing permanent residence applications from entrepreneurs already working in Canada under Start-Up Visa permits, aiming to reduce the temporary resident population while maintaining existing evaluation standards for these cases.
Further restrictions take effect at year's end, as IRCC will cease accepting new Start-Up Visa applications after December 31, except for entrepreneurs who secured commitments from designated organizations during 2025. The Self-Employed Persons Program remains paused indefinitely. These adjustments are designed to manage the substantial backlog in business immigration applications and lay the groundwork for a new pilot program targeting immigrant entrepreneurs. Officials indicated that details about this replacement initiative will be released sometime in 2026.

Ontario slashes international student permits by 42% as province shifts focus to workforce development

Ontario is tightening its doors to international students in 2026, with the province facing a sharp 42% cut in available study permits following federal restrictions. The allocation drops to just over 70,000 permits from more than 116,000 the previous year, marking the third consecutive year of reductions. Minister Nolan Quinn announced that the province will strategically distribute these limited spots to programs aligned with Ontario's most pressing labour needs, including construction, healthcare, and STEM fields. Graduate students at public institutions will now be exempt from requiring attestation letters. The move comes as Ontario attempts to balance federal immigration policy shifts with its own economic priorities. Rather than spreading permits across all programs, the government is channelling 96% of allocations to public colleges and universities that train students for high-demand careers. This strategy accompanies a nearly $1 billion investment announced in Budget 2025 to create more than 100,000 new seats across critical sectors. The province maintains that this targeted approach will attract top talent while protecting the integrity of its education system, even as institutions grapple with significant enrollment uncertainty for the third year running.Ontario Colleges face an uncertain future as the federal international student cap drives program cuts and layoffs
Ontario's college sector is grappling with significant upheaval as tighter federal restrictions on international student visas force institutions to suspend programs and reduce services. Ottawa's decision to reduce study permit issuance to 408,000 in 2026 – down from 485,000 in 2024 – has prompted colleges to cut hundreds of programs and eliminate more than 8,000 positions. Students at institutions such as George Brown, Conestoga, and Fanshawe are experiencing reduced support services, including mental health resources and food programs, while popular programs in hospitality and other fields are being cancelled. Union representatives have called the changes inhumane, particularly after Conestoga issued nearly 400 layoff notices just before the holidays, affecting both faculty and support staff across multiple campuses.

Canada reports a 53% drop in international student and worker arrivals

Canada's efforts to reduce temporary resident numbers are showing measurable results, with new data revealing a 53% decrease in student and worker arrivals between January and October 2025 compared to the same period in 2024. The government has implemented stricter caps on international student permits and tightened eligibility for temporary foreign workers as part of its commitment to bring the temporary population below 5% of the total population by late 2027. Only 3,030 new students arrived in October 2025, down 60% year-over-year, while worker arrivals dropped by 48%.

Canadian job vacancies drop nearly 3% in Q3 2025, continuing three-year decline

Canada's job market saw vacancies fall by 14,000 positions in the third quarter of 2025, marking a 2.8% decrease to 492,500 openings. This decline follows similar drops earlier in the year and extends a downward trend that began after vacancies peaked at nearly 986,000 in mid-2022. Full-time and permanent positions bore the brunt of the reduction, while part-time and temporary roles remained relatively stable. Year-over-year figures show even steeper declines, with full-time vacancies down 12.3%. However, there's a silver lining: long-term vacancies requiring 90+ days to fill dropped to 27.1%, suggesting employers are having an easier time filling available positions than in previous quarters.