Canada's federal government has sustained sharp reductions in non-permanent resident inflows through the 2026-2028 Immigration Levels Plan, targeting a drop in their population share from over 7 percent to under 5 percent by late 2027 via lower student and temporary worker arrivals. This policy shift, reinforced after earlier caps, has produced net outflows exceeding 100,000 NPRs in recent quarters, driving official population declines of roughly 0.2 percent in late 2025 and early 2026—the first annual contraction on record. Parliamentary Budget Officer projections indicate continued flat or negative growth for the full year as outflows offset permanent resident admissions, supporting trader consensus that 2026 will register the largest recorded drop absent any major reversal in targets or permit extensions.