Canada’s population has recorded consecutive quarterly declines through mid-2026, driven primarily by net outflows of non-permanent residents after federal caps on international students, temporary foreign workers, and related permits took effect. The 2026-2028 Immigration Levels Plan sets permanent resident admissions at 380,000 annually while cutting new temporary resident arrivals to 385,000 in 2026—down sharply from prior targets—with the explicit goal of reducing the non-permanent share of the total population below 5 percent by the end of 2027. Statistics Canada data show natural increase turning negative in recent quarters and permanent inflows running below 2025 levels, amplifying the contraction. These policy adjustments, initiated under the prior government and maintained by the current administration amid pressures on housing and services, have produced year-over-year drops exceeding 200,000 people in partial periods, positioning 2026 for a historically large annual decline relative to prior records that featured either modest growth or no contraction. Trader consensus at 85.5 percent for the largest drop on record reflects the scale of ongoing outflows and the absence of near-term policy reversal.