Canada’s Demographic Shift Puts Immigration’s Economic Role in Focus

Canada’s Population Growth Has Slowed Sharply

Canada’s population growth slowed to 0.5 per cent in 2025, its weakest rate in more than a century. This reflects an ageing population and lower immigration following federal policy changes.

Annual growth averaged around 1.2 per cent for most of the past 50 years before reaching 3 per cent in the early 2020s. That surge expanded the workforce but added pressure to housing and services. Since immigration levels were reduced in 2024, fewer arrivals and more temporary resident departures are expected.

Why Lower Immigration Matters for the Canadian Workforce

Immigration has offset Canada’s persistently low birth rate. Newcomers often arrive in their prime working years, with temporary workers filling shortages in sectors including agriculture, hospitality and care, and skilled migrants supplying specialist expertise.

The report suggests as more Canadians retire, fewer overseas workers could restrict labour supply and economic output. Competition may intensify in shortage occupations, increasing the need for immigration routes aligned with genuine labour-market demand.

Lower immigration may ease some housing pressure, but migrants also create demand for goods and services. Reduced spending could therefore contribute to slower growth.

Canada May Need to Prioritise Retention and Skills

Immigration will remain central to Canada’s productive capacity even with lower intake. Government immigration policy may need to focus retaining existing workers, recognising overseas credentials and directing skills towards shortage occupations.

Anyone planning a move to Canada should not interpret the Bank’s analysis as an announcement of new visa rules or a more relaxed approach to immigration.
However, the economic case for well-targeted migration remains strong, particularly in sectors exposed to retirements, persistent vacancies or specialist skills gaps.

Other Immigration News: Temporary Workers Can Take Short Courses Without a Study Permit

A temporary policy introduced on 4 September 2026 allows eligible work permit holders to study full-time or part-time on programmes lasting up to six months without a study permit. Permission ends when the course or work permit expires, whichever comes first. Eligible workers in Quebec do not need a Quebec Acceptance Certificate.

The change may help workers complete short training or licensing programmes while employed, including in healthcare and skilled trades. It is due to expire on 31 December 2027 unless revoked earlier.

However, the new approach is limited and is unlikely to remove the wider barriers faced by internationally trained professionals. Many qualification programmes take longer than six months, while workers may still encounter tuition costs, licensing requirements, limited course availability and difficulty balancing study with employment.

What Should Work Permit Holders and Employers Do?

Workers should confirm that their permit covers the full course, that regulators recognise the training and whether study could affect a future permanent residence application. Employers should choose programmes addressing defined skills gaps and agree any changes to working hours.

How Can IAS Help?

If you are applying for temporary work in Canada, already hold a work permit or are considering permanent residence, our immigration advisers can assess your options, eligibility and application requirements.

If you want to study while working, IAS can advise whether the temporary policy applies, how your permit expiry and course length affect eligibility, and whether longer training requires a study permit.

We can also explain the immigration implications of licensing, credential-recognition and skills training, including how Canadian work experience and study may relate to permanent residence. For tailored advice on applying for a Canadian work permit, studying while you work or planning your longer-term immigration options, contact us today on +1 844 312 4979 or reach out to us online.