The Canadian post-secondary education sector is grappling with recent policy changes from Immigration, Refugees, and Citizenship Canada (IRCC) that limit student permits and restrict post-graduation work permit (PGWP) eligibility. These decisions have introduced significant financial and operational challenges for colleges and universities nationwide. Leaders in the education sector are voicing their concerns and rallying together to address the impact on Canada’s institutions and the country’s global reputation as a top destination for international students.
Financial Implications for Colleges
Among the hardest-hit institutions is Algonquin College, which recently reported a $32 million revenue shortfall due to declining international student enrollment following the IRCC’s policy changes. President and CEO Claude Brulé highlighted that the college’s enrollment numbers for international students in 2024 are expected to fall nearly 2,400 short of budget targets in a message to colleagues. This reduction and the eligibility restrictions for PGWPs severely impact colleges that rely on international enrollment to offset funding gaps left by stagnant domestic tuition fees and limited provincial support.
Brulé’s second-quarter financial projection report showed that approximately 65 percent of Algonquin’s programs no longer qualify for PGWPs under the new IRCC guidelines, thus adding to the challenges. This restriction makes it more difficult for colleges to attract international students seeking work experience in Canada following their studies, further hindering their financial stability and professional growth.
Nationwide Concerns
Pari Johnston, President and CEO of Colleges and Institutes Canada (CICan) has spoken out against Ottawa’s “one-size-fits-all” approach, arguing that the new policies ignore local post-secondary institutions’ unique needs and contributions. Johnston emphasized the critical role of public colleges in regional workforce development, stating that community colleges in cities like Red Deer, Vancouver, and Chicoutimi understand their local labour markets better than policymakers in Ottawa.
Johnston has urged institutional leaders to rally their communities and advocate for change, highlighting that many colleges are already aligned with regional labour market needs, especially in rural and remote areas. The demand for skilled workers in healthcare, construction, and education, often met by graduates of local colleges, could be jeopardized as institutions struggle to adjust to these policy shifts. Additionally, Johnston calls for unified action to convey the harmful effects of the IRCC policy to federal and provincial decision-makers, emphasizing the need for a collaborative framework that accounts for the diverse economic needs across Canada’s regions.
The Impact on Global Competitiveness
Canada’s reputation as a preferred destination for international students has taken a notable hit, with the country now ranked third after the U.S. and the U.K. The shift is attributed to the restrictive measures and lack of clarity surrounding PGWP eligibility, which make it challenging for prospective students to make informed decisions. International students have long been drawn to Canada for its education quality and the opportunities to work and potentially build a life here. However, recent policy changes risk discouraging students who seek those pathways.
According to Gabriel Miller, President of Universities Canada, international students contribute disproportionately to university operating budgets, paying tuition fees that can be four to five times higher than those for domestic students. Miller expressed concern that the restriction on study permits, and work permits could lead to budget deficits at institutions across Quebec, Ontario, and the Maritimes, where many universities are already struggling financially.
This trend may have long-term consequences for the Canadian economy. As Miller pointed out, the policies could deprive Canada of a future workforce comprising doctors, engineers, and entrepreneurs—skilled professionals the country urgently needs to sustain its growth.
A Call for Reforms
In response to the outcry from educational leaders, the IRCC has acknowledged areas for improvement in its approach to managing international student enrollment. Immigration Minister Marc Miller, speaking on CBC’s Power and Politics, emphasized the importance of transparency in Canadian institutions’ recruitment and enrollment practices. However, he noted that reliance on international student tuition cannot be the sole answer to institutions’ financial challenges, calling for provincial governments to assume a more active role in supporting public colleges and universities.
For some, the recent tightening of student permits and work eligibility aligns with a broader political agenda, reflecting public concerns over the strain on housing and healthcare infrastructure attributed to the rising number of international students. While Dale McCartney, a Canadian international student policy researcher, acknowledged the pressures international students place on infrastructure, he also criticized the policy shift as a politically motivated response that ultimately risks undermining Canada’s potential to attract and retain talent.
Advocating for Policy Revision
The combined voices of Canada’s college presidents and CICan underscore a need for policy changes that better align with the labour needs of local economies. Johnston and others are advocating for a labour alignment framework that reflects the unique regional expertise of institutions. Such a framework, they said, would ensure that students’ fields of study correspond with local labour demands without subjecting public colleges to the same criteria applied to universities, given their differing roles and scopes.
As public institutions adapt to the changing landscape. Brulé has asked Algonquin College’s Executive Team to “prioritize the needs of our learners and focus on the college’s financial sustainability.” He outlined mitigation measures, including postponing some expenses and reviewing hiring and staffing decisions in a proactive move to manage finances while prioritizing student needs. However, the college’s leadership and others across the country are clear that sustained advocacy is crucial to address the systemic challenges these policies pose.
The Future of International Education in Canada
Canada’s post-secondary sector has reached a pivotal moment where the future of international education and workforce development are inextricably linked. With continued advocacy from leaders like Brulé and Johnston, there is hope that Ottawa will consider reforms to better support the education sector while addressing immigration policy concerns. However, Canadian institutions’ financial stability and global competitiveness are at risk without swift action.
Canada’s success as an international education destination depends on fostering an environment where students can study and envision a future. In this high-stakes environment, policymakers and educational leaders must collaborate to create solutions that meet Canada’s economic needs and international students’ aspirations.
