Canada universities suffer: Why falling Indian student numbers are leading to layoffs

Government limitations on study permits have led to approximately 10,000 faculty and staff layoffs. Colleges heavily reliant on international tuition fees are struggling, with some suspending programs and reducing staff.

India and Canada flags

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Ottawa: A fall in enrolment of Indian students in Canada colleges have resulted in around 10,000 faculty and support staff losing their jobs. According to the Ontario Public Service Employees Union (OPSEU), the heavy dependence of the colleges on international tuition fees, especially from Indian students, have forced the institutions to resort to layoffs. 

The Canadian government had limited the number of study permits (visas for international students), leading to fewer students coming to study in Canada. Indian students make up more than half of the International students in many colleges, such as in Ontario. 24 public colleges are reportedly on the cusp of financial instability within the college system. OPSEU has sought emergency government support, without which the situation could worsen. The government policy has also disrupted private-public college partnerships, which earlier helped international enrolments.

‘Canada universities should rely less on India’ 

In February, Canada Immigration Minister Marc Miller had asked universities and colleges to limit the reliance on Indian students and widen their recruitment strategies. He said that the goal should be to focus on educational standards amid high student numbers. “Universities and colleges need to put a little more effort into the price of acquisition and invest more in the talent that you’re bringing here, and that includes going to more countries and expanding your resources,” Miller stated, without denying the impact of Indian students on the Canada's economy.

However, colleges in Canada are suffering. According to reports:

• Mohawk College in Hamilton announced a 20% reduction in administrative staff and suspended 16 academic programs in December 2024, citing financial pressures.
• Northern College in Timmins is projecting a $6 million deficit for the 2025–2026 academic year, which is expected to rise to $12 million by 2026–2027.
• In November 2024, Sheridan College suspended 40 programs in response to budget shortfalls and falling enrolment.
• Seneca College temporarily shuttered its Markham campus, attributing the decision to a sharp decline in international student numbers.
• Ontario’s universities are bracing for collective financial losses of $330 million in the current fiscal year, with the shortfall projected to climb to $600 million next year.