Canada has entered a new chapter in its immigration landscape. For the first time in several years, the total number of temporary residents has declined on a year over year basis. This change follows a period of unprecedented growth driven largely by international students and foreign workers and reflects the cumulative impact of stricter federal controls introduced since 2024. Between 2024 and 2025, the number of temporary residents fell by 14,954. While the figure itself is relatively small, it represents a clear departure from recent trends. In the previous year alone, Canada added more than 780,000 non permanent residents before most of the current restrictions came into force.

Large metropolitan areas see the sharpest losses

The overall decline was concentrated in Canada’s largest population centres. Major metropolitan regions recorded a combined net loss of more than 20,000 temporary residents. Ontario and British Columbia experienced the most significant reductions, with Manitoba also reporting declines. These losses were partially offset by gains in Alberta and Quebec, though not enough to reverse the national trend.

The Toronto census metropolitan area stands out in particular. With a net decrease of 44,792 temporary residents, Toronto alone accounted for more than three times the national net decline. This imbalance highlights how population losses in the country’s largest hub were counterbalanced by growth elsewhere. Other metropolitan areas with notable decreases included Vancouver, Kitchener Cambridge Waterloo, London, Hamilton, Winnipeg, Victoria, and Halifax.

Smaller centres continue to attract temporary residents

In contrast, smaller population centres saw modest growth. Collectively, these areas added 3,524 temporary residents during the same period. Several regions outside the largest urban markets recorded meaningful gains, particularly in Alberta and Quebec.

Montreal posted the largest increase, followed by Calgary and Edmonton. Growth was also observed in Ottawa Gatineau, Windsor, Saskatoon, and a number of mid-sized communities across Alberta and Quebec. These patterns suggest a gradual redistribution of temporary residents toward regions with stronger labour demand or more manageable housing conditions.

Departures and slower arrivals reshape the total count

The reduction in total temporary residents reflects both rising departures and slowing arrivals. Between 2024 and 2025, 120,016 people emigrated from Canada. At the same time, approvals for new study and work permits have been contracting since 2024. Because temporary resident totals measure people already in Canada, policy changes tend to appear with a delay. Many permit holders only feel the impact when applying to renew, extend, or transition their status and discover that fewer options are available.

Policy changes driving the decline

The shift in numbers follows a series of targeted policy changes affecting both foreign workers and international students. Under the Temporary Foreign Worker Program, low wage LMIA applications submitted after September 26, 2024 are no longer processed in regions with unemployment rates of six percent or higher. The list of affected regions is updated quarterly. In addition, the maximum duration for low wage work permits was reduced from two years to one.

For higher paid positions, the wage threshold for the high wage stream was increased to 20 percent above the regional median. Eligibility for spousal open work permits was also narrowed. Access is now limited to spouses of higher skilled workers in specific occupations and spouses of students enrolled in doctoral programs, longer master’s programs, or select professional fields. Eligibility depends on occupation, program type, and minimum work permit validity.

International students have faced substantial changes as well. Post Graduation Work Permit eligibility now includes language requirements and field of study restrictions for many applicants. Graduates of public private college partnership programs became ineligible for PGWPs as of May 2024. Study permit volumes were capped nationally, with 2025 allocations reduced by ten percent compared to the previous year. Most new applicants must now submit a provincial or territorial attestation letter as part of the application process.

Several pandemic era measures were also withdrawn. The policy allowing visitors to transition more easily to job offer supported work permits ended in August 2024. In December 2024, same-day processing at ports of entry was eliminated through a formal ban on flag-poling.

Recalibration of temporary immigration

Taken together, these developments point to a deliberate recalibration rather than a temporary adjustment. The federal government has signalled a clear intention to manage temporary resident volumes more tightly in response to housing pressures, infrastructure capacity, and public concern.

For employers, students, and foreign workers alike, the environment has become more restrictive and more complex. The period of rapid and largely unchecked expansion has ended, replaced by a system that places greater emphasis on limits, eligibility, and regional balance.