Canada's New Immigration Policies Slow Population Growth

Recent data from Statistics Canada shows that Canada's extensive changes to its immigration laws and policies have been very successful in lowering the number of temporary and permanent immigrants entering the country, and that the country's population growth has essentially stopped.

In January and April 2025, the population in Canada increased by 20,107 people, a 0.0 growth rate, the lowest rate since the COVID-19 pandemic. To compare, Canada had an average quarterly growth rate of 0.3% over the period 2001 to early 2024.

This sharply decelerating pace has been due to drastic Canada immigration reforms implemented in late 2024 and early 2025 to alleviate the strain on housing, healthcare, and infrastructure.

Why the Slowdown? Changes In Immigration Policies

The slowdown in birth rates in Canada can be linked to a strategic change in immigration policy. Here's how:

1. Low Permanent Resident Admission

In October 2024, the 2025-2027 plan on immigration levels was announced, which also reduced the PR target to 395,000 in 2025, down from 485,000 (2024). It is aimed at establishing a more balanced immigration system that will be more than the willingness and economic ability to accommodate and provide settlement services.

This is a significant change compared to the previous position of the country, in which immigration quotas continued to grow each year following the pandemic.

2. Limit on Temporary Residents

This is marked as the first time ever where Canada has imposed temporary resident caps with 673,650 admissions of both foreign workers and international students as the goal.

This contains limits of:

• Study Permits: The target is to reduce the number of new permits to 40% compared to 2024 (104,000), and the permitted applications are set to 550,162 in 2025.
• Temporary Foreign Workers: Particularly via the low-wage LMIA stream, which is currently discontinued in regions where the unemployment level is 6 % or higher.

3. Modernization of Spousal Open Work Permits

As of January 2025, only those spouses who satisfy tough conditions can receive open work permits:

The student needs to be enrolled in a master's or doctoral degree that must be of a minimum of 16 months duration or in a select few professional programs.

The foreign worker must have a 16-month work permit and work in TEER 0/1 jobs or select popular TEER 2/3 jobs.

4. Access to Post-Graduation Work Permits (PGWP) Restricted

The eligibility of PGWP is now limited to:

• The field of study's relevance to the demands of the labour market
• Language proficiency skills
• Exemptions from the program (depending on whether it meets IRCC standards)

Students in non-priority fields who applied after this date may no longer qualify for PGWPs, impacting their long-term ability to immigrate to Canada.

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The Outcome: Sixth Consecutive Quarter of Retarded Growth

It is the sixth straight quarter of lower population growth since these changes were first indicated in 2023. Remarkably, the number of temporary residents in Canada decreased by 61,111 in the first quarter of 2025 alone, adding to the slowdown.

Analysts attribute this policy orientation to rising public disquiet about the affordability of housing policy, healthcare pressures, and infrastructure constraints within major cities in Canada.

Express Entry and The Road Ahead

The Express Entry Program, once seen as a fast track to PR, is also being affected. As there are not as many PR slots, candidates are encountering:

• Increased CRS score cut-offs
• Less often draws
• More attention to provincial selections and employment proposals

Studying strategies and utilizing tools such as the CRS Calculator, therefore, becomes essential now more than ever, or enlisting the assistance of regulated immigration activity.

Conclusion

There is a significant change occurring in Canada, as suggested by the new immigration policies towards quality over quantity. The nation continues to take skilled workers and international students, but it is now doing this at a regulated rate.

For those looking to immigrate to Canada, the process is still very much alive but now demands higher qualifications, targeted career choices, and an understanding of the evolving immigration landscape.

Whether you're eyeing the Express Entry Program, the Provincial Nominee Programs, or a study-to-PR pathway, staying informed and proactive is the only way forward in 2025.

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Tags: Canada New Immigration Policies Canada Immigration Open Work Permits Spousal Open Work Permits Post-Graduation Work Permits temporary residents in Canada Canada Immigration News