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The Wall Street Publication > Blog > World > Canada’s worldwide scholar cap helped decrease rents. However will it deliver schools and universities down as effectively?
World

Canada’s worldwide scholar cap helped decrease rents. However will it deliver schools and universities down as effectively?

Editorial Board Published November 16, 2025
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Canada’s worldwide scholar cap helped decrease rents. However will it deliver schools and universities down as effectively?
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Amanda Shaw has labored at St. Lawrence Faculty’s Cornwall campus for greater than a decade, lengthy sufficient to have lived via the worldwide scholar growth. And now the bust.

When she began, overseas enrolment was low. Then it appeared to skyrocket. The small campus on the shores of the St. Lawrence River in japanese Ontario began to bustle; the faculty ran funds surpluses and launched modern packages. Even through the chaos of COVID-19 the numbers continued to develop. The identical factor was taking place at schools throughout the province and in different elements of the nation.

Then, in January 2024, the federal authorities successfully pulled an emergency brake. It introduced speedy steps to scale back the variety of worldwide research permits by about 35 per cent, primarily in an try to chill an overheated housing market. A few dozen associated coverage shifts, a mixture of cuts and restrictions, adopted over the subsequent 18 months. “All of a sudden the landscape changed,” Ms. Shaw stated.

Practically two years later, lease costs have come down in some cities because the variety of worldwide college students has dropped. It’s simpler to discover a place to reside. However there was a trade-off.

The decline in worldwide college students has had a devastating impression on many schools and universities. In Ontario’s school system alone, at the very least 8,000 folks have misplaced their jobs, in accordance with figures printed in a mediator’s report. 1000’s extra positions have been reduce at postsecondary colleges throughout the nation, and a whole lot of packages have been closed or suspended. What was as soon as a $35-billion a yr business – equal to about 1.6 per cent of GDP – is now struggling to adapt to a brand new actuality.

Any hope that the federal authorities would change course was erased final week. Prime Minister Mark Carney’s first funds introduced that the variety of worldwide research permits could be reduce practically in half once more, to 155,000 subsequent yr from a objective of about 306,000.

Open this picture in gallery:

Final week, Finance Minister François-Philippe Champagne unveiled a federal funds that tightens the reins even additional on worldwide research permits.Dave Chan/The Globe and Mail

Governments in Canada used to rejoice internationalization. They prodded universities and schools to pursue overseas college students as a supply of funding, since they pay charges a number of instances increased than home charges. When the technique proved profitable, provinces eased up on their monetary assist for the sector, which has been largely stagnant. The elevated worldwide tuition income made it potential to maintain prices for Canadian college students comparatively low and sponsored costly packages.

Then got here the research allow cap in 2024.

The variety of new worldwide scholar arrivals from January via August 2025 dropped to 89,430, down from 221,940 within the first yr of the cap, in accordance with knowledge printed by the federal authorities.

The worth has been paid most closely in Ontario. The province, which gives the bottom stage of per-student funding of any within the nation, has frozen home tuition charges since 2019. Its 24 publicly funded schools got here to depend on worldwide college students, primarily from India, to fund operations. So excess of 600 packages have been suspended at these colleges, at the very least two campuses have closed and between 8,000 and 10,000 jobs have been misplaced. The universities say they’ve decreased spending by $1.8-billion, however the cuts to check permits introduced within the newest federal funds may imply an extra drop of as much as $2.5-billion in tuition income.

At St. Lawrence Faculty in Cornwall, the layoffs began final fall. Ms. Shaw’s workforce within the tutorial planning division was reduce in half, as was the group of clerks that helps them. This yr, what she calls the “hemorrhaging of jobs” has led to an enormous improve in workload.

She spent 5 weeks on strike in September and October, a significant disruption that put roughly 10,000 Ontario school assist workers on the picket strains. The principle situation was job safety. Ms. Shaw, a pacesetter within the native union chapter, desires to work within the school sector till retirement, however that future appears to be like rather more unsure. “It’s hard not to think, ‘What’s going to happen to me?,’” she stated.

What some see as a problem with roots primarily in Ontario has had penalties in different areas. In Saskatchewan, a few hundred staff have been laid off and 17 packages have been suspended at Saskatchewan Polytechnic, which has misplaced about 40 per cent of its worldwide enrolment – a income drop of tens of tens of millions. “We were able to run additional programs with additional seats for domestic students as a result of our international enrolments, and that won’t happen now,” stated Larry Rosia, the college’s president. “We just don’t have the funds.”

The sector as a complete has been “devastated” by the 2024 coverage adjustments, he added, citing a public tally saved by training marketing consultant Ken Steele that exhibits greater than 12,000 jobs misplaced throughout the nation.

“If we were talking about any other industry – the steel industry, the auto industry, the lumber industry – it would be on the TV every night and the federal government would be stepping in to help,” Mr. Rosia stated.

Many within the sector agreed that one thing wanted to be carried out, he stated, however authorities coverage has ignored the necessity for younger, expert graduates typically crammed by overseas college students in Saskatchewan and past. Worldwide grads from his faculty have a 96 per cent employment charge, he added.

Saskatchewan Polytechnic, whose Saskatoon campus is one in every of a number of throughout the province, has plans to construct a brand new, extra fashionable campus right here. In the meantime, it has needed to reduce 17 packages and hearth a whole lot of workers. President Larry Rosia is alarmed by the postsecondary job losses throughout in Canada.Liam Richards/The Globe and Mail

The federal government was in such a rush to decrease the variety of non permanent residents that it didn’t pay sufficient consideration to who it was pushing away, stated Gabriel Assets Ltd. Miller, president of Universities Canada, which represents practically 100 Canadian colleges.

“The challenge here was always to lower numbers in a smart way,” he stated. “It’s a bit like they decided to go on a diet and they stopped eating vegetables.”

One measure within the current funds that was welcomed by universities was the choice to take away grasp’s and PhD college students at public universities from being counted in opposition to the research allow cap. That ought to make it simpler for colleges to recruit high candidates, lots of whom might need to keep in Canada and will have sturdy prospects for high-paying employment.

“Going forward, targets will continue to be set with the objective of attracting the best and brightest international students to study at Canada’s world-class learning institutions in volumes aligned with community capacity and the economic needs of the country,” stated Matthew Krupovich, a spokesperson for the Division of Immigration, Refugees and Citizenship Canada.

Training is primarily a provincial matter, he added, and people governments are liable for allocating the research permits allotted to them by Ottawa.

However with demand down, it stays to be seen what number of candidates will select Canada over different in style worldwide locations, akin to Britain or Australia.

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Cutbacks have created labour friction at some colleges. Dalhousie locked out its college in August amid a contract dispute over wages and workload, which obtained settled in September.Darren Calabrese/The Canadian Press

In B.C., a whole lot of postsecondary jobs have already been misplaced, together with tens of millions in income. Unions have stated the system is being decimated whereas the provincial authorities blames “abrupt” coverage adjustments from Ottawa. Atlantic Canada’s universities lately reported that their worldwide scholar numbers are down 36 per cent over two years. The lack of income performed a task within the current lockout of college at Dalhousie College in Halifax, and is hitting each college within the area.

The state of affairs is considerably completely different in Quebec, the place a lot of worldwide college students at francophone universities hail from France or Belgium and pay home tuition charges beneath an settlement with the Quebec authorities.

Nonetheless, the decline in worldwide college students within the couple of years has been dramatic, stated Christian Blanchette, president of the College of Quebec at Trois-Rivières, the place about two-thirds of worldwide college students come from sub-Saharan Africa. It has value his college about six per cent of its income, or $18-million, which isn’t simply changed, he stated.

“I think there is a housing issue across the country, yes, but the international students are not the ones creating it,” Dr. Blanchette stated. “International students are an easy target.”

By late 2023 the variety of worldwide college students in Canada had surpassed a million, having tripled in a few decade. That created stress on the decrease finish of the housing market, the place some low-income Canadians had been competing with college students for inexpensive lodging. Rents rose steadily, inspired by the inflationary stress of the pandemic.

The federal authorities knew that housing wouldn’t be constructed shortly, but it surely may reduce the variety of non permanent residents it was admitting. When saying the decreased immigration ranges plan in October 2024, IRCC stated the cap on scholar admissions would have a constructive impact on housing, infrastructure and social providers.

“While it’s clear our economy needs newcomers, we see the pressures facing our country, and we must adapt our policies accordingly,” stated Marc Miller, the Immigration Minister on the time. “These changes will make immigration work for our country so that everyone has access to the quality jobs, homes and supports they need to thrive.”

Since 2024, rental worth will increase in lots of cities have eased, in accordance with the Canada Mortgage and Housing Company. Nonetheless, “it’s a two-sided story,” stated Tania Bourassa-Ochoa, deputy chief economist at CMHC.

The principle driver, she stated, has been a leap in rental provide: This yr, for the primary time in 4 a long time, extra rental models had been constructed than condos.

Nevertheless it’s additionally clear that worldwide scholar demand is down, significantly at schools, stated Anthony Passarelli, CMHC market analyst for various southwestern Ontario cities with massive scholar populations (together with Windsor, London, Kitchener-Waterloo and Hamilton).

“I talk a lot with the rental property operators in those areas and they all said the same thing,” Mr. Passarelli stated. “There’s less competition for units.”

Sherin Sara John, an Indian worldwide scholar on the College of Waterloo, stated it was comparatively straightforward to discover a shared lodging for the summer season time period this yr. She lived with 4 others in an residence close to campus and paid solely $800 a month, at the very least $200 lower than the typical in recent times.

“It was great,” Ms. John stated. “I did enjoy that I wasn’t paying over $1,000 to live.”

Sherin Sara John, a Waterloo scholar from India, has two years left in her psychology research.Alicia Wynter/Globe and Mail

André Côté, interim government director of the DAIS suppose tank at Toronto Metropolitan College, advised a Parliamentary committee this fall that it’s clear the worldwide scholar program had grown “a little out of control.”

There had been an enormous improve within the variety of overseas college students, primarily in school packages, who had been unlikely to go on to well-paying jobs, Mr. Côté stated. And there was by no means going to be sufficient spots for all those that needed to remain in Canada long-term, he added.

“As much as it stinks to close campuses and to lay off staff, I look at all this and say we had a system that grew far too big for its britches,” he stated to the committee. “It was a bit of a reckoning that had to happen.”

Dr. Blanchette of UQTR thinks the tide might ultimately flip once more when governments notice the essential position that overseas expertise can play of their pursuit of financial development.

Worldwide recruitment is vital as a result of it brings in gifted people who enrich a college group, stated Daniel Jutras, rector of the College of Montreal and chair of the U15 group of huge analysis universities. “We’re bringing them in because they contribute to our research, our programs, our learning environments.”

Open this picture in gallery:

Amir Khajepour is an engineering professor in Waterloo. Discovering the most effective college students for analysis jobs is tougher than typical, he says.Alicia Wynter/Globe and Mail

Amir Khajepour, a professor of engineering on the College of Waterloo in Ontario, says he usually has 40 to 50 graduate college students and postdocs working in his lab. His analysis has attracted grants and business partnerships centered on autonomous automobiles, underground mining, robotics and well being care. However he’s struggling to fill obtainable positions.

“We are not looking for just anyone. We are looking for the best students from the best universities with the best credentials,” he stated.

Within the final yr he has accepted about 20 to 30 worldwide candidates, however solely 4 have been capable of get hold of research permits, as processing instances have elevated, he stated, including his lab is right down to about 30 college students.

Prof. Khajepour stated he doesn’t perceive why the federal government was beforehand unable to differentiate between high college students coming to attend prestigious universities and other people whose main goal is immigration.

“You are damaging research. In Canada, you are in a good position to attract the best. You are not even using this opportunity,” he stated.

Prof. Khajepour and his college students are persevering with their analysis into autonomous automobiles, regardless of having fewer folks within the Waterloo lab than he would love.Alicia Wynter/Globe and Mail

Greater training: Extra from The Globe and Mail
The Decibel podcast

Girls make up about 60 per cent of college enrolment in 2025, and that gender imbalance will not be new: It’s been widening a long time. Why? Postsecondary reporter Joe Friesen spoke with The Decibel about why fewer males are in increased training, and what colleges may do to lure them again. Subscribe for extra episodes.

Extra from Joe Friesen

Scorching takes and scorching ideas at McMaster assist ease newcomers into campus life

TMU president marks milestone of opening a brand new medical faculty

For a few of Canada’s prestigious packages, mid-90s grades will not be sufficient

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