Canada Sees First Decline in Foreign Workers and Students in Years

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Canada Sees First Decline in Foreign Workers and Students in Years

Key Takeaways

  • The number of temporary residents in Canada decreased by 14,954 between 2024 and 2025, marking a significant U-turn in immigration policy.
  • The largest metropolitan areas in Canada, including Toronto, Vancouver, and Kitchener-Cambridge-Waterloo, saw the greatest reductions in temporary residents.
  • Quebec and Alberta saw gains in temporary residents, with Montreal and Calgary experiencing significant increases.
  • Tighter regulations, including a moratorium on low-wage Labour Market Impact Assessments and reduced validity periods for low-wage stream Temporary Foreign Worker Program permits, have contributed to the decrease in temporary residents.
  • The Canadian government has also introduced restrictions on spousal open work permits, Post-Graduation Work Permit eligibility, and study permit applications.

Introduction to the Decline in Temporary Residents

For the first time in years, the overall number of study and work permit holders in Canada has decreased year over year, as tightening immigration regulations in the country continue to impact temporary residents. Between 2024 and 2025, Canada saw a net decrease of 14,954 temporary residents, with the greatest reductions coming from the country’s largest metropolitan areas. This decrease represents a significant shift in immigration policy, as between 2023 and 2024, Canada gained 781,075 non-permanent residents.

Regional Variations in Temporary Resident Numbers

The bulk of the decrease in temporary residents came from Canada’s largest metropolitan areas, which saw a net decrease of 20,611 temporary residents. Ontario, British Columbia, and Manitoba experienced significant losses, while Quebec and Alberta saw gains. In contrast, smaller population centers around Canada saw a slight increase of 3,524 temporary residents. The number of temporary residents in these areas will likely continue to be affected by the tightened regulations, as those already in Canada with existing study and work permits will only feel the consequences of these changes when seeking to renew or extend their status.

Emigration and Net Decreases in Temporary Residents

A total of 120,016 people emigrated from Canada between 2024 and 2025. The largest net decreases in temporary residents were seen in the Toronto, Vancouver, and Kitchener-Cambridge-Waterloo areas, with Toronto experiencing a net decrease of 44,792 temporary residents. This decrease is more than three times the net decrease across Canada overall, indicating that significant declines in Toronto were offset by gains in other areas of the country.

Regions with the Largest Gains in Temporary Residents

Several Census Metropolitan Areas (CMAs) saw net gains in temporary residents, particularly in Quebec and Alberta. Montreal experienced a gain of 17,635 temporary residents, while Calgary and Edmonton saw gains of 9,608 and 8,972, respectively. Other areas, such as St. Catharines-Niagara and Ottawa-Gatineau, also saw significant increases in temporary residents.

Causes of the Decrease in Temporary Residents

The decrease in temporary residents in Canada can be attributed to the tightening of immigration regulations, particularly those targeting international students and foreign workers. The Canadian government has enacted policies such as a moratorium on low-wage Labour Market Impact Assessments, reduced validity periods for low-wage stream Temporary Foreign Worker Program permits, and restrictions on spousal open work permits and Post-Graduation Work Permit eligibility. Additionally, the government has introduced a study permit cap for 2025, which limits the number of study permits that can be issued.

Impact of the Regulations on Temporary Residents

The tightened regulations have had a significant impact on temporary residents in Canada. The moratorium on low-wage Labour Market Impact Assessments has made it more difficult for employers to hire foreign workers, while the reduced validity periods for low-wage stream Temporary Foreign Worker Program permits have limited the amount of time that foreign workers can stay in Canada. The restrictions on spousal open work permits and Post-Graduation Work Permit eligibility have also limited the opportunities for temporary residents to work in Canada. Overall, the decrease in temporary residents in Canada is a result of the government’s efforts to tighten immigration regulations and reduce the number of temporary residents in the country.

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