Falling Numbers: Canada’s Population Declines in 2025
Canada’s population declined in the third quarter of 2025, marking the first drop since 1947. Statistics Canada reported the decrease on December 12, 2025. The total population dropped by 33,000 people, mainly due to fewer newcomers and rising deaths.
The federal agency said international migration — a major driver of growth — slowed sharply. Meanwhile, Canada recorded over 400,000 deaths in 2025, the highest in decades. The result was a rare net loss of residents.
Why the Population Dropped
The main reason for the decline is a sharp fall in immigration. Migration levels have dropped because of global travel disruptions and changes in visa processing. These factors limited the number of people arriving from abroad.
At the same time, Canada’s population is aging. A larger share of residents are elderly, which raised the death count. The combination of fewer arrivals and more deaths pushed the total below previous levels.
Demographers said the shift reflects broader changes in global movement and domestic demographics. Canada had relied on strong immigration for decades to support economic growth and population gains.
Impact on Economy and Services
A falling population could affect the labour force and economic growth. Fewer workers may slow business expansion and productivity. Some industries that rely on new workers, like construction and healthcare, may feel pressure.
Governments may face higher costs for health care and senior services as the population ages. A smaller workforce may also strain pension systems and public finances in the long term.
Experts say Canada must adapt policies to respond to the shift. Some suggest targeted immigration programs to attract workers with in‑demand skills.
What Comes Next
Officials expect demography to remain a key issue for policymakers. The government will monitor trends closely and may adjust immigration rules and settlement programs.
While the population drop is notable, experts caution it may be temporary if migration rebounds. Canada plans to keep its doors open to newcomers, especially skilled workers, to support its future growth.
