Canada’s recent recalibration of its immigration policies appears to be achieving its intended effects, with early economic indicators suggesting gradual easing in both housing and labor markets, Maple News reports.
A new report by TD Economics, authored by Chief Economist Beata Caranci and Senior Economist Marc Ercolao, finds that reductions in new arrivals—both temporary and permanent residents—have had a notable economic impact. The study attributes a 36% reduction in projected rent increases and a near 1% improvement in the unemployment rate to these immigration policy shifts.
Interestingly, despite a slowdown in population growth, the report highlights that household spending behavior remains stable. “Contrary to expectations, decreased demographic growth has not translated into lower consumer activity,” the authors noted, signaling resilience in domestic demand.
These findings come ahead of the federal government’s anticipated release of its next Immigration Levels Plan, which outlines targets for new immigrants across a three-year range. Last year’s plan—covering 2025 to 2027—marked a strategic shift by reducing targets for permanent resident admissions from 500,000 to 395,000 and, for the first time ever, setting explicit targets for temporary residents.
The objective of the revised plan appears to be twofold: easing strain on Canada’s housing market and infrastructure while maintaining economic stability. Data from Statistics Canada supports this outcome, showing flat population growth in the first half of 2025—0.0% in Q1 and just 0.1% in Q2.
The impact is especially pronounced in cities with higher concentrations of temporary residents, where a cooling rental market is offering some relief to renters facing years of upward pressure on housing costs. Analysts suggest that while broader affordability challenges remain, the data indicate that moderated immigration flows contribute to localized improvements.
As Maple News continues to follow developments, experts await the forthcoming 2026–2028 Levels Plan for further insights into Canada’s evolving approach to immigration, economic growth, and social balance.