Canada has set a less-than-glamorous record — net migration has turned negative for the first time. This is the first time since 1852, when data was recorded.

According to the latest data from Statistics Canada, the population actually declined by 0.2% in the third quarter of 2025. The main driver behind this is a significant decrease in the number of non-permanent residents, which dropped by 176,500 people. To alleviate the housing crisis and social service pressures, the government directly cut back on immigration targets — the permanent resident goal was halved from 500,000 to 395,000, and temporary resident quotas were reduced from 670,000 to 385,000.

It sounds like a move to control the situation, but it might have gone too far. Population growth has fallen to its lowest level since World War II, and the workforce continues to age, posing long-term risks to economic growth. Between July and September 2025, Canada also netly reduced 40,000 jobs, putting additional pressure on the labor market.

From a regional competition perspective, this policy adjustment weakens Canada's competitiveness in attracting North American talent, and instead increases the relative attractiveness of the US tech and financial sectors. But don’t jump to conclusions — as the US’s second-largest trading partner, Canada's economic slowdown will inevitably ripple through supply chains and affect certain US industries. Overall, the impact on US stocks is mildly positive, mainly benefiting industries with high demand for skilled labor.