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Ontario Colleges struggle as funding crisis leads to layoffs, program suspensions

The impact of federally imposed restrictions on international student applications has intensified, leading more institutions to cut programs or close campuses. As a result,...
HomeFeaturesOntario Colleges struggle as funding crisis leads to layoffs, program suspensions

Ontario Colleges struggle as funding crisis leads to layoffs, program suspensions

The impact of federally imposed restrictions on international student applications has intensified, leading more institutions to cut programs or close campuses. As a result, students across the province are facing growing uncertainty and stress about their post-secondary education.

“It’s certainly stress and pressure on us because of the changing rules and policies,” said Akshita Sharma, a personal support worker (PSW) student at Centennial College, which, as of March 6, 2025, announced the planned closure of its famed Story Arts Centre Campus, along with the suspension of 49 other programs.

Sharma, an international student and certified lawyer from India, added that despite coming to Canada to continue her studies in law – incurring an initial $18,000 in student debt in the process – she saw switching to the PSW program this year as the better alternative because of its eligibility towards a post-graduation work permit (PGWP).

“I was going to study another program – which was another $18,000 – in total $36,000, which is huge. So, to spend this much money and then you cannot work … you cannot enhance your skills, you cannot enhance your opportunities.”

With the PGWP being one of the only ways to continue residency in Canada following graduation, international students are being funnelled toward programs with worker shortages.

According to the Government of Canada website, to be eligible for a PGWP the applicant must graduate from a program linked to occupations experiencing long-term worker shortages.

Durham College (DC) Associate Vice President of Enrolment and International Education Thom MacDonald said DC remains committed to helping students, prospective students and alumni make informed choices about their education and career pathways through a variety of services, but students should also evaluate their options critically.

OSHAWA, Ont. – 2025-03-18 – A poster of Durham College’s mission statement. Located directly inside the main entrance to the Gordan Willey Building in Oshawa, Ontario. Photo by Malcom Winton.
OSHAWA, Ont. – 2025-03-18 – A poster of Durham College’s mission statement. Located directly inside the main entrance to the Gordan Willey Building in Oshawa, Ontario. Photo by Malcom Winton. Photo credit: Malcom Winton

“Students should carefully consider the labour market trends and employability when choosing programs,” said MacDonald.

Sharma said she used a variety of factors to make a responsible decision when determining which program deserved her time and money.

“I check the reputation of the program, the career opportunities with the program, is it in demand, or not? And, if I do this program, will I be stable in Canada for my work permit?” she said.

According to the Association of Universities and Colleges of Canada (AUCC), which represents 97 Canadian public and private not-for-profit universities, enrolment levels are not a true measure of overall demand. Instead, the AUCC cites enrolment levels as the measure of the amount of demand being satisfied.

MacDonald said DC employs a strategic approach to maintain program offerings and align them with current labour market trends.

“This includes regular program reviews, investment in emerging fields, and collaboration with industry partners,” said Macdonald. “Through that approach, we optimize our existing offerings and ensure they remain relevant to the job market.”

As more program suspensions, layoffs and campus closures across the college sector are announced daily, Ontario Public Service Employees Union (OPSEU), the union representing faculty and staff at Ontario’s 24 public colleges, said in a press release an “emergency infusion” of $1.4 billion is needed to stabilize the crisis.

DC layoffs announced

In an official statement from the president of Durham College, Dr. Elaine Popp, DC announced the restructuring of their faculties which included 30 approved voluntary retirements. An additional 35 full-time support staff and administrative positions have also been eliminated. In addition, 49 vacancies will remain unfilled moving forward.

In a recent interview for the Chronicle, Kathleen Stewart, chief steward of OPSEU Local 354, which represents academic staff at Durham College, said that chronic underfunding was the “single greatest” reason for the crisis to which Ontario colleges are currently responding.

Stewart said that for every international student who does not enrol, she needs to replace that income with three domestic students, highlighting the vast reliance on international student revenue.

According to Statistics Canada, Ontario ranks last across the provinces in per-student post-secondary funding, while tuition fees in the province have tripled since 2010.

In an open letter released on March 19, the presidents of the Ontario Chamber of Commerce, Colleges Ontario and Council of Ontario Universities urged Minister of Finance Peter Bethlenfalvy and Minister of Colleges, Universities, Research Excellence and Security Nolan Quinn to increase strategic investment in Ontario’s post-secondary institutions.

The letter indicates four key areas where investment would increase Ontario’s global competitiveness: increase base operating revenues, fully fund enrolment expansion, enhance research funding and strengthen partnerships.

JP Hornick, president of OPSEU, said Premier Doug Ford is to blame for the current crisis, saying he has “walked away” from post-secondary education.

As for Sharma, she prefers to stay out of the politics and focus on what is important to her, a sentiment often echoed across the international student population of Ontario.

“As an international student, it’s very important to maintain my work, my personal life and my studies, and keeping in mind all of the immigration rules,” said Sharma. “And I should not do anything wrong which may result any disqualification from my immigration.”

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