10,000 Ontario college layoffs, 600 programmes scrapped: Canada education is hurting, and there may be an India connection

Canada higher education crisis: Indians and other international students are slowly removing Canada as a favourite destination for higher education, and the country is feeling the pinch now. The Trudeau-era crackdowns on immigration, including on international student visas and work permits, have contributed to a crisis in Canada's higher education system. Many colleges are laying off staff and rolling back several programmes.

Ontario college layoffs are a sign of the times

In the latest, a report from Ontario said there were more than 10,000 college layoffs in the past year in Canada's most populous province. More than 600 programmes have been suspended, including in important sectors, across the province's 24 public colleges. This, said a report in The Star, represents “one of the largest mass layoffs in the province's history”.

The layoffs and programme cuts have hit nearly every discipline: from nursing and business to culinary arts and forest management.

Why are Canadian colleges laying off staff?

The colleges are hit hard by policy changes on immigration, and years-long freezes on fees.

But the main driver is the sharp decline in international student enrollment, especially from India.

Federal immigration reforms, introduced by the government of former prime minister Justin Trudeau, and continued by the current administration of Mark Carney, contributed to this drop.

The governments capped international study permits, amid diplomatic tensions with India.

There was a 342 per cent rise in international enrolment between 2012 and 2021 in Canada. This had made many colleges financially dependent on international tuition revenues, which are much higher than domestic rates. It would be fair to say that it was the fee-paying foreign students who kept the Canadian higher education system going.

With these funds drying up gradually, the educational institutions are facing major budget shortfalls.

The India connection to Canada higher education crisis

In this context, remember that Indians constitute the largest number of international students in Canada.

Historically, India has been Canada’s largest source country for international students.

But in recent years, there has been a massive drop. Indian student enrolments in Canada dropped by 41 per cent in 2024, from 233,500 in 2023 to 137,600, as per recent data.

Impact on Canadian education

Budget constraints meant that Ontario's higher education sector lost one-sixth of its 60,000-strong workforce, including both full- and part-time roles.

Institutes like Centennial College alone suspended 116 programmes, according to the Star report.

The cuts affected both urban and rural areas.

Blame game on cost-cutting in Canadian higher education sector

Ontario Public Service Employees Union (OPSEU) accused colleges of resisting transparency and mismanaging funds. The Star report quoted its President JP Hornick calling it a “manufactured crisis” while management classes expanded, and their salaries exploded.

The future looks dark for Canada higher education

The Ontario situation could be a shape of things to come for Canada's higher education system. More closures are likely, with privatisation of education looming large. This would mean limited access to community programmes, leading to a cascading effect on the Canadian society and quality of living.

Rural and northern Canada economies, which relied heavily on college-trained workers, could be damaged.

Ontario colleges alone serve half a million students each year. This makes the disruption caused by layoffs a serious threat to both education and the broader labour market, noted the Star report.