Canada's federal government has implemented the 2026-2028 Immigration Levels Plan, which sharply reduces new temporary resident arrivals—including international students and workers—to 385,000, down substantially from prior targets, while stabilizing permanent resident admissions near 380,000. These adjustments aim to lower the temporary resident share of the population below 5 percent by year-end and address housing and infrastructure pressures. Parliamentary Budget Officer projections indicate flat or modestly negative overall population growth in 2026 due to net outflows of non-permanent residents offsetting permanent inflows. Preliminary Statistics Canada data already showed a 0.2 percent decline in late 2025, reinforcing trader assessments that these policy shifts make a net decrease the more probable outcome for the full year.