Canada’s federal government has implemented sharp reductions in temporary resident arrivals through the 2026-2028 Immigration Levels Plan, capping new students and workers at 385,000 for the year while holding permanent resident admissions steady at 380,000. These measures, aimed at lowering the non-permanent resident share of the population below 5 percent by late 2027, have produced consecutive quarterly population declines in late 2025 and early 2026, according to Statistics Canada data. Outflows of temporary residents, elevated emigration of citizens and permanent residents, and flat or negative natural increase have offset new permanent admissions. Parliamentary Budget Office projections indicate overall population growth will remain near zero for 2026, reinforcing trader expectations of a net annual decline.