Canada’s population continued its upward trajectory into 2025, reaching 41,528,680 people as of January 1, according to new data released by Statistics Canada. However, the latest figures reveal a notable slowdown in the growth rate compared to previous quarters.
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The total population increase of 63,382 people between October 1, 2024, and January 1, 2025, represents a quarterly growth rate of just 0.2%, the slowest pace recorded since the fourth quarter of 2020 when pandemic-related border restrictions drastically curbed immigration.
Declining Growth After 2023 Peak
In contrast, 2023 witnessed an unprecedented population surge, particularly in the third quarter, driven largely by immigration and an influx of non-permanent residents. However, this rapid expansion has since moderated, signaling a potential shift in demographic trends.
One of the key drivers behind the slowing growth is the decline in non-permanent residents, a category that includes temporary foreign workers, international students, and asylum seekers. Canada saw a net decrease of 28,341 non-permanent residents between October 1, 2024, and January 1, 2025—marking the first quarterly decline in this group since late 2021.
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Canada’s Total Population Growth in 2024
Despite the recent slowdown, Canada experienced a total annual population increase of 744,324 people in 2024, translating to a 1.8% growth rate. This figure highlights the nation’s continued attractiveness for immigrants and the steady expansion of its workforce.
Factors Influencing the Slowdown
Several factors are contributing to the moderation in population growth:
- Tighter Immigration Policies: The Canadian government has introduced new measures to manage immigration, particularly regarding international students and work permits.
- Economic Uncertainty: Rising housing costs and inflationary pressures have made it more challenging for newcomers to settle in Canada.
- End of Temporary COVID-19 Measures: Special programs introduced during the pandemic to facilitate immigration have largely wound down.
What’s Next for Canada’s Population Growth?
While Canada remains one of the fastest-growing developed nations, the recent slowdown could influence future economic and labor market trends. Policymakers will need to balance the need for skilled labor with housing availability and infrastructure demands.
As 2025 progresses, attention will be on whether this dip in non-permanent residents continues or if new policies will reinvigorate immigration-driven growth. With the nation’s long-term economic strategy heavily reliant on immigration, future government decisions will play a crucial role in shaping Canada’s demographic outlook.
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