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Canada's New Immigration Policies Take Effect: Population Growth Nears Standstill as Q1 Increase Hits Recent Low
Published Date: June 20, 2025

A series of restrictive immigration policies implemented by the Canadian federal government since last year are showing their initial effects. According to the latest data released by Statistics Canada, the country's explosive population growth has been effectively brought under control.

The data shows that between January 1, 2025, and April 1, 2025, Canada's national population increased by only 20,107, representing a growth rate of virtually zero (0.0%). This marks the lowest quarterly population increase since the third quarter of 2020, when borders were closed due to the COVID-19 pandemic, and is on par with the historic low of Q3 2014. By comparison, Canada's average quarterly population growth rate was 0.3% from the first quarter of 2001 to the first quarter of 2024.

The core reason for this sharp slowdown is a dual reduction in the intake of both temporary and permanent residents. Data indicates that the total number of temporary residents in Canada saw a net decrease of 61,111 in the first quarter of 2025 alone.

This shift is not accidental but the direct result of continuous policy adjustments by the federal government since 2024. At that time, the government explicitly stated that record-high levels of temporary residents were placing unprecedented pressure on Canada's housing, social services, and infrastructure, necessitating intervention. This also marks the sixth consecutive quarter of slowing population growth since the intended policy changes were announced.

The following are the key policy measures driving this trend:

1. A Two-Pronged Approach: Drastic Cuts to Permanent and Temporary Resident Quotas

In October 2024, when announcing its 2025-2027 Immigration Levels Plan, the federal government confirmed a lower target for permanent resident (PR) admissions. The PR target for 2025 was reduced to 395,000, down from 485,000 in 2024.

More significantly, the plan introduced a target for temporary resident admissions for the first time, capping the total intake of foreign workers and international students at 673,650. The government's long-term goal is to reduce the proportion of temporary residents in Canada's total population to 5% by the end of 2026.

2. Tightening the Door for International Students: Cap on Study Permit Applications

Effective January 22, 2025, the federal government implemented an annual cap on study permit applications, limiting the number to be processed to 550,162. The target for issued study permits is even lower at 437,000, representing a 10% decrease from the 2024 cap.

To enforce this cap, Immigration, Refugees and Citizenship Canada (IRCC) introduced the Provincial Attestation Letter (PAL) system. Since January 22, 2024, the vast majority of international students must obtain a PAL from a provincial government before submitting their study permit application.

3. Restricting Low-Wage Positions: Moratorium on Processing Certain LMIA Applications

As of September 26, 2024, Employment and Social Development Canada (ESDC) announced it would pause the processing of certain Labour Market Impact Assessment (LMIA) applications. This moratorium primarily targets the low-wage stream of the Temporary Foreign Worker Program (TFWP).

Specifically, LMIA applications will not be processed if the offered wage is below the provincial or territorial median hourly wage, or if the job is located in a Census Metropolitan Area (CMA) with an unemployment rate of 6% or higher. The federal government updates unemployment data for CMAs quarterly. Without an approved LMIA, employers cannot hire foreign nationals through the TFWP, and existing workers cannot renew their work permits.

4. Stricter Eligibility for Spousal Open Work Permits

Beginning in January 2025, the federal government severely restricted eligibility for Spousal Open Work Permits (SOWPs).

For spouses of international students, eligibility is now limited to those whose partners are enrolled in master's programs of 16 months or longer, doctoral programs, or specific professional degree programs (e.g., nursing, engineering, law).

For spouses of foreign workers, the principal applicant must be employed in a high-skilled occupation under the Training, Education, Experience, and Responsibilities (TEER) system (TEER 0 or 1) or in select in-demand TEER 2 and 3 occupations. Furthermore, the principal applicant's work permit must be valid for at least 16 months at the time their spouse applies for the SOWP.

5. Higher Bar for Post-Graduation Work Permits: Linking PGWP Eligibility to Labour Market Needs

In 2024, IRCC made significant changes to the eligibility requirements for the Post-Graduation Work Permit (PGWP). Effective November 1, 2024, international graduates applying for a PGWP must meet specific field of study and language proficiency requirements in addition to existing criteria.

Unless their program of study is exempt, international students who applied for their study permit after November 1, 2024, must have graduated from a program aligned with an occupation in labour shortage to be eligible for a PGWP. This rule fundamentally alters the previously more lenient PGWP landscape, aiming to channel student talent more directly into industries where Canada needs it most.

Friendly reminder: There are many pathways to immigrate to Canada. We recommend first using UNA AI to generate an objective and neutral immigration plan, so you can gain an initial understanding of the possible immigration pathways and their requirements, and then choose to proceed with one-on-one consultations with a licensed Canadian immigration consultant partnered with UNA.
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