New data released by CIC News on 17 January 2026 show that Canada ended 2025 with 14 954 fewer temporary residents—work-permit and study-permit holders combined—than the year before. Although the drop represents only about 1 % of the total temporary-resident population, it is the first annual decline since 2012 and marks a sharp reversal from 2024, when Canada added more than 780 000 people in these categories.
Analysts attribute the downturn to a series of policy tightenings rolled out in 2024-25, including caps on study-permit allocations to private colleges, higher financial-proof thresholds for students, and tougher employer-compliance audits for Work Permit holders. The largest decreases were recorded in Ontario and British Columbia—provinces that had seen the most aggressive growth in private-college enrolment—while Quebec and Alberta posted modest gains.
Against this backdrop, VisaHQ offers a streamlined way for employers, students and other applicants to stay compliant with Canada’s evolving entry rules. Its online portal (https://www.visahq.com/canada/) provides real-time guidance, document vetting and concierge submission services that cut down on errors and delays—an especially valuable advantage as financial-proof requirements rise and employer audits become more stringent.
![Number of foreign workers and students in Canada falls for first time in a decade]()
For corporate mobility managers the shift has two immediate repercussions. First, processing queues for employer-specific work permits are easing, with IRCC reporting a 12 % reduction in inventory for the Global Talent Stream since October. Second, housing-market pressures in Vancouver and Toronto, long blamed in part on record student arrivals, may soften slightly—potentially reducing living-cost allowances on future expatriate assignments.
Policy experts are divided on whether the downturn is a blip or the start of a sustained contraction. Some argue that Canada’s 2026-28 Immigration Levels Plan still relies heavily on temporary-to-permanent pathways and will force numbers up again. Others point to the federal government’s stated objective of “re-balancing” migration to match housing and infrastructure capacity. Employers with high volumes of foreign talent should therefore plan for continued policy fluidity, possibly including further reductions in study-permit quotas and more targeted work-permit categories linked to in-demand occupations.
In practical terms, HR teams are advised to file extension and restoration applications well before status expiry, as IRCC continues to prioritise in-Canada applicants. Companies operating in sectors facing acute shortages—health care, construction and advanced manufacturing—may find it easier to justify Labour Market Impact Assessments in 2026 as overall temporary-resident numbers level off.
Analysts attribute the downturn to a series of policy tightenings rolled out in 2024-25, including caps on study-permit allocations to private colleges, higher financial-proof thresholds for students, and tougher employer-compliance audits for Work Permit holders. The largest decreases were recorded in Ontario and British Columbia—provinces that had seen the most aggressive growth in private-college enrolment—while Quebec and Alberta posted modest gains.
Against this backdrop, VisaHQ offers a streamlined way for employers, students and other applicants to stay compliant with Canada’s evolving entry rules. Its online portal (https://www.visahq.com/canada/) provides real-time guidance, document vetting and concierge submission services that cut down on errors and delays—an especially valuable advantage as financial-proof requirements rise and employer audits become more stringent.
For corporate mobility managers the shift has two immediate repercussions. First, processing queues for employer-specific work permits are easing, with IRCC reporting a 12 % reduction in inventory for the Global Talent Stream since October. Second, housing-market pressures in Vancouver and Toronto, long blamed in part on record student arrivals, may soften slightly—potentially reducing living-cost allowances on future expatriate assignments.
Policy experts are divided on whether the downturn is a blip or the start of a sustained contraction. Some argue that Canada’s 2026-28 Immigration Levels Plan still relies heavily on temporary-to-permanent pathways and will force numbers up again. Others point to the federal government’s stated objective of “re-balancing” migration to match housing and infrastructure capacity. Employers with high volumes of foreign talent should therefore plan for continued policy fluidity, possibly including further reductions in study-permit quotas and more targeted work-permit categories linked to in-demand occupations.
In practical terms, HR teams are advised to file extension and restoration applications well before status expiry, as IRCC continues to prioritise in-Canada applicants. Companies operating in sectors facing acute shortages—health care, construction and advanced manufacturing—may find it easier to justify Labour Market Impact Assessments in 2026 as overall temporary-resident numbers level off.
