Canada's population in the fourth quarter increased at the slowest rate since the pandemic, rising by 0.2% to 41.53 million people by December 31. This growth rate represents the lowest since the fourth quarter of 2020, when it rose by 0.1%, according to Statistics Canada.
The moderate growth was largely attributed to a decrease in the number of non-permanent residents. While Canada had been welcoming to migrants, the influx contributed to an affordability and housing crisis last year. In response to growing public discontent, the former Prime Minister indicated that a projected population decline of 0.2% is expected in both 2025 and 2026.
The new immigration plan aims to welcome 395,000 new permanent residents in 2025, 380,000 in 2026, and 365,000 in 2027, a decrease from 485,000 in 2024. Industry groups have warned that slowing immigration may negatively impact labor availability and demand, particularly as consumer and business sentiment has already begun to weaken.
Statistics Canada reported that there were 28,341 fewer non-permanent residents on January 1, 2025, compared to October 1, 2024, marking the largest decline since the third quarter of 2020, when Canada welcomed approximately 68,000 individuals. At the end of the fourth quarter, non-permanent residents comprised 7.3% of the total population, slightly down from 7.4% at the end of the third quarter.
Despite the slowdown, strong growth in the first two quarters of last year led to an overall population increase of 744,324 in 2024, resulting in a growth rate of 1.8%. Although this figure is lower than the growth rates of 2.5% in 2022 and 3.1% in 2023, it still surpasses the growth rates recorded in any year from 1972 to 2021.