Canada’s Education Crisis: International Student Decline Sparks Mass Layoffs in Ontario Colleges

Canada’s education sector is facing a crisis as a 31% drop in study permits issued to Indian students in early 2025 sparks mass layoffs in Ontario’s public colleges. The decline, tied to tighter immigration caps, has led to job losses nearing 10,000 and over 600 program cuts. The Ontario Public Service Employees Union blames underfunding, while provincial officials refute the claims, citing increased investment. With nearly 1.5 million Ontarians impacted by campus closures, the future of post-secondary education remains uncertain.

In a startling turn of events, Canada's education sector is witnessing significant turbulence, with a sharp decline in international student enrollment triggering widespread layoffs in Ontario’s public colleges. The numbers paint a concerning picture: Immigration, Refugees, and Citizenship Canada (IRCC) data reveals a 31% drop in study permits issued to Indian nationals during the first quarter of 2025, compared to the same period in 2024. This decline, coupled with other challenges, has led to one of the largest mass layoffs in Ontario’s history.

A Sharp Decline in Indian Student Enrollment

Indian students, who make up a substantial portion of international enrollees in Ontario’s public colleges, have been notably absent in 2025. Between January and March, only 30,650 Indian nationals were granted study permits, a steep fall from 44,295 during the same months in 2024. This drop coincides with Canada’s decision to cap study permits at 437,000 for 2025, a 10% reduction from the previous year, as part of efforts to alleviate pressure on housing, healthcare, and other essential services.

The ripple effects of this policy shift are already being felt. By mid-2025, Canada had issued just over 96,000 study permits, a significant drop from the 121,070 issued during the same period in 2024. Adding to the concern, an IRCC report revealed that nearly 20,000 Indian students failed to show up at their designated institutions in March and April, further exacerbating the situation.

Ontario Colleges Grapple with Layoffs and Program Cuts

The decline in international students has had a catastrophic impact on Ontario’s public colleges, with the Ontario Public Service Employees Union (OPSEU) estimating job losses could reach 10,000. As of June, 19 colleges reported reducing their workforce by over 8,000 employees, and more than 600 programs have been cut across the province. OPSEU President JP Hornick described the layoffs as "one of the largest mass layoffs in Ontario’s history," surpassing even the Hudson’s Bay liquidation that affected 8,000 workers nationwide.

Hornick emphasized the critical role of colleges in providing accessible, low-barrier job training, especially in a challenging economic climate. However, with nearly 1.5 million Ontarians witnessing campus closures in their communities, the long-term implications are expected to be severe.

A War of Words: Union vs. Provincial Authorities

The layoffs have sparked a heated debate between OPSEU and the Ontario government. The union accuses the province of neglecting post-secondary education through insufficient funding and a lack of transparency regarding the scale of layoffs. Hornick criticized the government, stating, “We’re bleeding jobs,” and warning of generational consequences if the trend continues.

In response, Bianca Giacoboni, a spokesperson for Colleges and Universities Minister Nolan Quinn, dismissed the allegations as "categorically false." She highlighted the government’s significant investments in the sector, including over $2 billion in new funding over the past 14 months, in addition to the $5 billion allocated annually. Giacoboni also announced plans to review the college funding model later this summer.

Centennial College Pushes Back

Centennial College, one of the institutions at the center of the controversy, challenged OPSEU’s claims that it had cut over 100 programs, clarifying that only 54 programs were suspended in 2025. This discrepancy underscores the complexity of the issue, with both sides presenting conflicting narratives.

The Road Ahead

As Ontario’s colleges navigate this turbulent period, the broader implications for Canada’s education system remain uncertain. The decline in international students, particularly from India, serves as a stark reminder of the delicate balance between immigration policies and the economic stability of educational institutions. With a funding model review on the horizon, stakeholders are hopeful for solutions that will safeguard the future of post-secondary education in the province.

For now, the challenges persist, leaving thousands of educators, students, and communities grappling with the fallout of a rapidly shifting landscape.