Canada's federal government has implemented tightened immigration targets under its 2026-2028 levels plan, capping permanent resident admissions at 380,000 annually while cutting new temporary resident inflows by over 35 percent, including a 49 percent reduction in international student arrivals. These measures, introduced to ease pressure on housing and public services after prior rapid growth, have driven net outflows of non-permanent residents, resulting in Canada's first annual population decline of 0.2 percent in 2025 according to Statistics Canada data. Ongoing quarterly drops through early 2026 reflect the policy's impact on temporary worker and student numbers, supporting trader consensus around a continued net decrease this year amid stabilized permanent inflows.