Canada’s population dropped last year, marking the first time the country has seen an annual net decline in residents since Confederation.

According to the latest quarterly estimate from Statistics Canada, the population of citizens, landed immigrants and non-permanent residents in Canada stood at 41,472,081 on Jan. 1, 2026 — a decrease of 0.2 per cent, or just over 102,000, from Jan. 1, 2025.

StatsCan said that even though the population increased by just over 77,000 people in the first six months of last year, it wasn’t enough to outweigh the decline of almost 180,000 in the second half of 2025.

This preliminary estimate said a reduction in the number of non-permanent residents was the “leading factor in slowing population growth.”

“After reaching 3,149,131 on Oct. 1, 2024, the number of non-permanent residents living in Canada steadily decreased to 2,676,441 on Jan. 1, 2026,” the agency said. 

Non-permanent residents include people holding work or study permits as well as asylum claimants and any family members living with them. 

A spokesperson for the agency told CBC News that it has tracked Canada’s population growth since 1867. Prior to 1946, population growth was tracked starting on June 1, and since then is tracked starting Jan. 1.

In all that time, the agency said, there has never been a one-year period that has shown a population decrease before 2025.

StatsCan said this preliminary estimate “should be interpreted with caution” because work and study permit extensions could “lead to larger than usual updates” in the coming months. 

“As a result, the population decrease noted today could be smaller or greater or even turn into an increase when the estimates are updated in a few months, after more complete and accurate administrative data become available,” the agency said.

Cutting immigration and temporary residents

The government under former prime minister Justin Trudeau began cutting back on both permanent and temporary immigration after it rapidly increased during the post-pandemic labour shortage.

Prior to Prime Minister Mark Carney taking office, the Liberals had already taken steps to shrink temporary residents’ share of Canada’s population.

In the fall budget, the Carney government said Canada would admit only 385,000 temporary residents in 2026 — about 43 per cent less than the 2025 target — and 370,000 in 2027 and 2028.

The budget also said that the federal government would limit the number of new permanent residents to 380,000 annually between 2026 and 2028.

StatsCan said the reduction in the number of permanent immigrants in the last quarter of 2025, which dropped from more than 103,000 to just over 83,000, is in line with new targets established by the Liberal government.