Canada has logged the biggest population drop in its history, and immigration policy changes are the main reason why.

According to Statistics Canada, the country’s population fell by roughly 76,000 people between July and October, bringing the total to about 41.6 million. It’s the first quarterly population decline since the pandemic, and it follows several years of rapid growth.

The biggest driver was a sharp reduction in non-permanent residents, including international students and temporary workers. Their numbers dropped by more than 176,000, as a record number of temporary permits expired while far fewer new ones were issued. Non-permanent residents now make up 6.8% of Canada’s population, down from 7.3% earlier in the year.

After aggressively expanding immigration to fill labour shortages post-COVID, the federal government began tightening the system in 2024. Measures included caps on temporary residents, fewer study permits, limits on spousal work permits, and lower permanent resident targets for the next few years.

Experts say the shift reflects a balancing act between easing pressure on housing and services while avoiding labour gaps. Some question whether the slowdown came too abruptly, and what it could mean for jobs, housing, and long-term economic growth.