Ontario colleges and universities say the federal government’s cap on international students is taking a toll on the higher education sector, as some schools face growing deficits, layoffs and, in at least one case, to a temporary campus closure.

St. Lawrence College in Kingston, Ont., said it had cut 30 administrative and support positions and warned of further job cuts after international student enrollment fell 50 percent.

President and CEO Glenn Vollebregt said the college is participating in a province-wide efficiency review expected to conclude early next year and as it will take place, “SLC cannot guarantee that there will not be further layoffs. »

However, the school “will continue to hire positions of all types” — including a director of indigenous services — to ensure it can still operate “effectively,” Vollebregt said in a statement. Mohawk College in Hamilton has also informed its staff that layoffs are on the horizon, while Seneca Polytechnic will temporarily close one of its campuses north of Toronto by the end of the fall semester.

“Due to recent decisions by the federal government regarding international students, we anticipate a decline in enrollment at the Markham campus,” Seneca said in a statement last month, adding that students displaced by the closure will transfer to two other campuses .

Several universities say they are also considering cuts amid financial uncertainty.

Groups representing postsecondary institutions say this may be just the tip of the iceberg, as the dramatic decline in international student enrollment exacerbates existing budget deficits at some schools.

The federal government says it will issue about 300,000 fewer international student permits over the next three years – a decision that will particularly affect Ontario as the country has seen greater growth in the number of international students .

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Data reveals Ontario public colleges account for largest share of international study permits

New data obtained by CBC News shows which colleges and universities are behind the sudden growth in the number of international students in Canada. As CBC’s Mike Crawley reports, Ontario’s public colleges account for a disproportionately high share.

Ottawa also limits work permits for international students after graduation to regions experiencing labor shortages in Canada.

Although the full impact of these policy changes on college programs and staffing levels is not yet known, early signs do not look good, said Michael McDonald, director of government relations and policy for Colleges and Institutes. Canada.

The organization says international students contributed nearly $31 billion to the Canadian economy and supported more than 360,000 jobs in 2022.

But about 70 percent of programs currently offered by colleges are deemed ineligible for post-graduation work permits, McDonald said. Nearly $2 billion in revenue is potentially at risk as international student enrollment has declined by 54 percent across the country, he added.

McDonald said some colleges have already undertaken “enrollment adjustments,” while others are considering doing the same.

“We know there is a lot of anxiety and worry in the system right now and unfortunately there is not a lot of clarity,” he said.

Some schools are hit harder than others

Sean Coffey, director of communications and special events at Mohawk College, said the school is projecting a $50 million deficit for the 2025-2026 academic year, making job cuts inevitable.

“There will be layoffs, but we don’t have numbers right now,” he said. “The impact will be felt across the entire college and will not be limited to one area.”

Algonquin College, which has campuses in Ottawa and the Ottawa Valley, said it was facing a $32 million loss in revenue due to a drop in international student enrollment.

“We anticipate that for this year, our actual enrollment will be about 2,400 students lower than what we projected about a year ago,” said Claude Brûlé, the college’s president and CEO.

“All institutions that recruited internationally will have experienced a greater or lesser impact depending on the intensity with which they recruited internationally,” he said in a telephone interview.

He said that while Algonquin is in the midst of discussions about possible job cuts, no decisions have yet been made. But the college’s leadership team has been tasked with reducing company expenses and reviewing all hiring and staffing decisions, he said.

The financial challenges come amid ongoing negotiations between OPSEU, a union representing 15,000 professors, instructors, librarians and counselors, and the College Employers Council over salaries, workloads and job stability. Union members voted last month in favor of a strike if negotiations fail.

Government says student cap maintains sustainable growth

Immigration, Refugees and Citizenship Canada did not respond to questions about the impact of declining international student enrollment on colleges and universities. But he said the federal government’s measures were necessary to reduce the number of temporary residents in the country and to ensure schools could adequately support their international students.

“The annual growth in international student numbers could not be sustained without ensuring that students receive the support they need,” said IRCC spokesperson Isabelle Dubois.

Ontario universities are also feeling the effects of the cap on study permits, even though fewer than 20 per cent of their students come from abroad.

The University of Windsor said it faces a $10 million deficit this year, which is expected to increase to $30 million next year, in part because of limits on international students and a freeze on tuition fees in the country in force since 2019.

“We can expect layoffs. They’re going to be immediate, they’re going to be ongoing, and they’re going to affect all categories of university employees,” said Clinton Beckford, vice president for human resources, equity. and inclusion at university. staff at a public meeting last week.

WATCH | Universities and colleges say international student cuts could harm Canada’s reputation:

Universities and colleges say international student cuts could harm Canada’s reputation

Some Canadian colleges and universities say they are concerned that the Liberal government’s cuts to international student permits will hurt their operating budgets and harm Canada’s reputation as a world leader in education.

In Ottawa, Carleton University said it had initially estimated its 2024-25 operating budget deficit would be $26 million, but the projection is now “significantly higher” as the number of international students undergraduate and graduate studies decreased by 55 and 35 percent respectively. .

Steve Orsini, president and CEO of the Council of Ontario Universities, said universities are facing financial losses of $300 million this year, which are expected to double next year due to declining student populations international.

“As a result, you’re going to see hiring freezes and layoffs,” he said in an interview. “You’re going to see programs and services offered to students less and less often, whether it’s coaching or mentoring, and the demand for mental health will be more difficult to meet in the future. »

Canadian universities “at a critical moment”

Universities were already struggling financially and are now suffering a “double whammy” with the loss of income brought in by international students, he said.

Orsini called on the province to increase operating grants for universities and lift the funding cap for domestic students to help universities admit more high school graduates.

“The sector is at a critical juncture, and without additional support, Ontario risks lacking the critical talent and research needed to drive economic growth and prosperity,” he said in a statement. .

A spokesperson for Colleges and Universities Minister Nolan Quinn said funding for post-secondary institutions is “higher than ever,” pointing to the $1.3 billion Ontario announced earlier this year to “stabilize » the sector.

Dayna Smockum also said decisions related to job and staff cuts “rest solely” on colleges and universities and that the province “will not impose additional costs on the backs of students and families by increasing fees of schooling”.