Immigration and International Students Drive Canada’s Population Rebound in Early 2021

Maple News reports that Canada’s population saw its strongest quarterly growth since the pandemic began, thanks to a surge in immigration and the return of international students during the first quarter of 2021.

According to data assessed by Maple News, immigration pushed Canada’s population up by 82,000 people in Q1 2021. This rebound marks a major shift from the pandemic slump, with the federal government’s focus on converting temporary residents already in Canada—such as international students and work permit holders—into permanent residents playing a crucial role in the turnaround.

Notably, the issuance of study permits saw a 44% year-over-year increase. In the first quarter alone, Immigration, Refugees, and Citizenship Canada (IRCC) issued approximately 21,000 new study permits. Additionally, around 24,000 Post-Graduation Work Permits (PGWPs) were granted—a 160% rise compared to last year. This significant recovery in student migration follows a sharp decline in 2020, when Canada’s international student population dropped by 60,000.

Despite these gains, the overall annual population growth rate remained a modest 0.4%, far below the 2.1% required to maintain long-term demographic balance. The natural increase—births minus deaths—hit a historic low of just 6,400, partly due to COVID-19 fatalities. Economist Andrew Agopsowicz noted that as natural population growth continues to decline, immigration will be increasingly essential to offset demographic shortfalls.

Canada has set an ambitious target of welcoming 401,000 new permanent residents in 2021. However, by the end of April, only 91,600 new PRs had arrived, leaving a steep monthly requirement of over 38,000 newcomers for the rest of the year to meet the goal.

To accelerate progress, the IRCC concentrated on in-Canada candidates via Express Entry, inviting more than 88,000 applicants to apply for permanent residence in the first half of 2021—the most ever seen in such a timeframe. IRCC also rolled out temporary policy changes to simplify the process, including waiving medical exam requirements for some applicants and easing travel restrictions for approved permanent residents.

In addition, the Canadian government introduced new immigration streams specifically targeting essential workers, refugees, and residents from Hong Kong, all designed to expand pathways to citizenship amid global uncertainty.

Canada continues to face long-term demographic challenges tied to its aging population and declining birth rate. Without a strong influx of immigrants, the labour force will shrink, and economic growth may wane. An estimated nine million baby boomers are approaching retirement within this decade, placing growing pressure on a smaller workforce to uphold productivity and care for an older population.

With these trends in mind, immigration remains central to Canada’s strategy for ensuring sustained economic and demographic vitality, and 2021 marks a crucial step in that ongoing mission.

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