Canada's tighter immigration policies strain higher education and impact communities reliant on newcomers
Prime Minister Justin Trudeau’s government has shifted its immigration policy, significantly impacting Canada’s higher education sector.
According to Financial Post, this 180-degree turnaround has caused disruptions and is expected to affect other industries reliant on newcomers in the coming years.
Earlier this year, the government capped foreign student permits to address record population growth, which has strained housing, the job market, and public services.
Additionally, it reduced temporary worker programs and permanent resident targets.
The policy aims to reduce the number of temporary residents in Canada over two years as millions of visas expire.
While the government seeks to alleviate housing and social pressures, experts warn this approach might be unrealistic and create significant uncertainty.
The impact is especially evident in Ontario’s post-secondary institutions, where colleges face declining enrolment, job losses, and suspended programs.
Sheridan College in Brampton suspended 40 programs and implemented job cuts to balance its budget.
Mohawk College announced potential layoffs for 200 to 400 workers, while Seneca Polytechnic closed a campus designed for international students.
Fleming College suspended 29 programs, and Fanshawe College paused new intakes in several areas while planning for fewer students in the future.
Private colleges, such as Ace Acumen Academy in Toronto, are also struggling. CEO John Wu described the college’s dire situation, noting zero new students enrolled for the fall semester.
“We’re dying. I’m really in tears every time we talk about the future of the school,” said Wu.
He acknowledged problems with some colleges exploiting foreign-student enrolment but called the policy “reckless,” saying, “I can’t deny there are some bad apples among us—they’re just for profit. But the policy is just so rough and tough.”
Beyond education, the government’s broader immigration plan aims to remove hundreds of thousands of foreign workers.
Business groups have warned this could worsen labour shortages and reduce economic output. Economists are divided on the policy’s inflationary impact.
While Bank of Canada Governor Tiff Macklem expects limited effects on prices, Rebekah Young from Bank of Nova Scotia argued it could become “more inflationary than disinflationary.”
Immigration Minister Marc Miller defended the plan, describing it as necessary to restore Canada’s immigration system.
“The numbers of visas reserved for people coming in internationally are still very high,” Miller said in an October interview.
He insisted the measures would not “asphyxiate” the market but are essential for a temporary adjustment after significant population growth.
Trudeau’s policy aimed to reduce new foreign student visas to 360,000 in 2024, a 35 percent cut from 2023. However, the decline has been sharper than expected.
Study permit approvals in the second quarter of this year dropped by over half compared to 2022.
ApplyBoard projects that the total number of permits issued in 2023 could drop by 47 percent to 231,000.
The government also ended work permits for graduates of private-public partnership programs, which were a major driver of foreign student growth.
These programs had enabled private colleges in urban centres to deliver licensed curricula from public colleges in smaller communities. The policy has restricted enrolment at private colleges while affecting the economies of communities that hosted their public partners.
Ontario colleges are expected to lose $1.7bn in revenue over two years due to the student cap. Larger colleges like Conestoga, which enrolled 30,000 foreign students last year, are better positioned to withstand the changes compared to smaller institutions like Ace Acumen.
Conestoga received 4,600 new permits this fall, while Ace Acumen received none. However, even larger institutions face challenges, such as housing shortages and part-time job availability for students.
Fanshawe College, in London, Ontario, reported a drop in enrolment from 11,000 foreign students last year to 9,500 this September, with a 47 percent decline projected for January.
Despite these struggles, Conestoga’s campus in Kitchener remains busy, though its expanded facilities are not fully utilised. Students in the area continue to face difficulties finding jobs and housing.
The changes have affected Canada’s standing as a preferred destination for international students. According to an annual survey, Canada lost its top spot to other countries.
Universities, which generate an estimated $45bn in economic activity, are also feeling the strain.
International students, who account for 18 percent of university enrolment, have decreased in numbers, and projections indicate enrolments will remain below allocated visa levels.
Khawla Taha, founder of 365 Canada International Education and Integration Services, said she has no students coming to Canada this year, compared to more than 60 last year. “They asked me to apply elsewhere,” she said.
Ace Acumen is now in the process of ‘winding down’ operations, with about a third of its 200 employees set to lose their jobs by January.
Wu expects the college to close as early as mid-2025, when its remaining students finish their programs. In Toronto, instructor Munira Mistry fears losing her job by April.
Mistry, who came to Canada as an international student in 2020, said, “The government is only looking at us as liabilities, not assets. Immigrants can be assets.”
