Canada experienced a decline in its population by approximately 55,000 individuals in the first quarter of this year, as per the latest data from Statistics Canada. The estimated population as of April 1 stood at 41,417,056, showing a 0.1% decrease attributed to lower immigration rates and a decrease in births compared to deaths, according to the agency. This decline follows the previous year’s overall population decrease.
In the initial months of 2026, there was a notable 20% reduction in permanent immigrants in Canada compared to the same period in the previous year, dropping from 104,210 in 2025 to 83,149 this year. Additionally, the number of non-permanent residents decreased by over 117,000, with Statistics Canada noting potential updates to these figures due to evolving international migration policies.
The natural increase in population, where births exceed deaths, turned negative as 155 more deaths than births were recorded across the country in the first quarter. These demographic shifts have had implications on the economy, contributing to indicators showing Canada’s economic struggles recently.
Experts, including National Bank of Canada’s chief economist Stéfane Marion and University of Waterloo economics professor Mikal Skuterud, highlighted the impact of reduced immigration on the economy. Marion emphasized that the decrease in population has influenced economic metrics like gross domestic product (GDP). Skuterud pointed out that while a smaller population could mean a larger share of the economic pie per person, overall economic growth may require contributions from all members of society.
The decline in foreign students was also highlighted as a contributing factor to Canada’s economic challenges, as they often held low-wage jobs with limited impact on the GDP. Marion expressed concerns about global uncertainties affecting Canada’s economy and emphasized the importance of positive business investments to create jobs and accommodate immigration.
While Alberta continued to experience population growth, Ontario and British Columbia saw more significant drops in temporary residents compared to permanent immigrants. Marion noted that Alberta’s growth was partly attributed to inter-provincial migration, with more births than deaths recorded in the province. Both B.C. and Ontario experienced declines in permanent immigrants, offset by fewer temporary foreign workers and students relocating there.
Overall, the demographic changes in Canada have implications for economic growth, emphasizing the need for a comprehensive approach to address the challenges posed by the declining population and its impact on the economy.
