Canada’s population is shrinking. The change is reaching the country’s smallest province

Fewer people are immigrating to Canada, but P.E.I. is still celebrating multiculturalism despite a slowing population. Mariah Sarrouh reports.

CHARLOTTETOWN - Music, dance and food from around the world filled Charlottetown’s waterfront Sunday, offering a snapshot of how newcomers have changed P.E.I. at a moment when fewer are arriving.

DiverseCity marked its 20th year Sunday, with the capital kicking off a summer series that will see celebrations in seven communities. The festival is an annual showcase of arts, crafts and cultures representing immigrants and First Nations groups. But after a period of rapid population growth, that trend is turning.

“That’s certainly put on a different set of pressures,” said Dean Constable, executive director of the Immigrant and Refugee Services Association of P.E.I.

“We hear from employers that there is a need, especially in certain fields across the province, for workers (and) for population in rural areas in order to sustain services.”

P.E.I.’s population has dropped for three straight quarters, according to a provincial report based on the latest estimates from Statistics Canada.

In the first three months of the year, international immigration to the province decreased by 23 per cent compared with the same time last year.

That slowdown stretches well beyond the Island. Across the country, the population fell by 55,025 in the first quarter of 2026.

Statistics Canada says permanent immigration was down 20.2 per cent compared with the same time in 2025, in line with the lower federal target. That decline was driven largely by fewer people with temporary status, including international students, work permit holders and asylum claimants.

Those changes have started to trickle down and affect Charlottetown’s economy, said Mayor Philip Brown.

While Canadian immigration policy must adapt to the needs of bigger centres, Brown said smaller cities and towns across the Atlantic region rely on “open doors.”

“We just don’t have the capacity to continue on economically,” Brown said.

At his food stall, Syed Akbar Sadat said a lot has changed since he came to P.E.I. as a refugee from Afghanistan in 2007.

“Different culture, different food, different people. It’s amazing,” Sadat said. “Feels like home.”

That feeling rippled through the festival grounds.

“We feel the sense of belonging,” said Candice Chen. “We are so proud to show our traditional culture.”

Mabel Chu echoed the sentiment.

“We love it here,” she said. “We want to contribute to Canada here and want to do more things to support the community here.”

Emily Le, president of the Vietnamese Association of P.E.I., said: “I really like P.E.I. It’s safe, friendly and quiet.”

Earlier Sunday, dozens of new Canadians were sworn in, representing 12 countries, many of them families.

“It just showed me how strong we are when we are respecting each other’s cultures, language, customs,” Brown said. “That tapestry of differences makes us strong.”