Canada’s population soared to a historic peak of 40.77 million in 2023, a record-breaking surge primarily fueled by temporary immigration, according to Statistics Canada. The country welcomed 1.27 million new residents, marking a remarkable 3.2% increase from the previous year, the highest growth rate since 1957.
Why It Matters: The influx of immigrants, although contributing to the population boom, has been linked to a housing shortage that has escalated house prices and exacerbated affordability challenges, leading to a decline in Prime Minister Justin Trudeau’s approval ratings. Additionally, the rapid population growth has impacted Canada’s gross domestic product per capita figures and productivity levels, as noted by economists and the Bank of Canada.
Key Insights: Statistics Canada highlighted that a significant 97.6% of Canada’s population growth in 2023 stemmed from international migration, encompassing both permanent and temporary immigration, while the remaining 2.4% originated from natural increase.
The dominance of temporary immigration in driving population growth persisted for the second consecutive year, marking the third consecutive year with a net increase of non-permanent residents (NPRs).
Context: Canada has leaned heavily on immigration to bolster its labor force and foster economic expansion, with nearly a quarter of its population comprising non-native born Canadian residents as of 2021, according to the IMF’s 2021 report, the highest proportion among G7 nations.
Despite this reliance, in recent months, Trudeau’s Liberal government has responded to mounting pressure by implementing measures to limit the influx of international students and non-permanent residents entering Canada annually.