Steve Orsini is the president and CEO of the Council of Ontario Universities.
For generations, people from around the world came to Canada to fulfill their dreams and to help build our economy. But after years without a national plan, the number of temporary residents skyrocketed – adding to the already growing pressures on housing and community services. In response to growing public pressure, on Jan. 24, the federal government slammed on the brakes by reducing the number of international student permits it will issue this year by 35 per cent; then, in September, it announced a further 10-per-cent cut, to come in 2025.
This has had devastating effects on Ontario’s universities, which have been generating the talent and expertise our economy so desperately needs. Instead of targeting the “bad actors” that led to jaw-dropping increases in international students despite the lack of supports, and with numerous reports of questionable program offerings, the federal government took a blunt approach that affected those institutions that have acted responsibly in recruiting and supporting international students for decades.
Ontario’s universities worked together in establishing leading practices for international students to support their unique needs and promote a positive student experience. In fact, less than 20 per cent of all university students in Canada are international students, and the sector saw very modest growth rates over the years while providing students with robust wraparound services.
The federal government missed the opportunity to implement a targeted approach, and instead chose to make sweeping changes that affected all postsecondary institutions, regardless of good performance. This will have untold consequences for Canada’s ability to recruit top talent from around the world. Ontario universities alone are projecting nearly $1-billion in lost revenue over the next two years as a result of the federal changes.
In fact, the consequences of these changes are further exacerbating the deep financial challenges that Ontario’s universities are facing as a result of the provincial government’s 10-per-cent cut and freeze to tuition fees in 2019 and the decline of the real value of per-student operating grants. Even before accounting for the effects of the federal changes to international students, 10 universities reported operating deficits of more than $300-million in 2023-24.
International students from both graduate and undergraduate levels bring immense value to Canada’s economy, a fact underscored by a recent study, co-authored by University of Waterloo Professor Mikal Skuterud, that highlights that international students have strong employment outcomes and help boost Canada’s GDP. The Organization for Economic Coordination and Development data also shows that students with graduate level education enhance Canada’s productivity.
So what can the federal government do to rebuild Canada’s global reputation? First, when in a deep hole, stop digging. The blunt policy changes have created confusion and uncertainty, which is discouraging students from coming to Canada. We need the world’s top scientists, researchers and innovators to help grow our economy and to make up for our slowing labour-force growth rate.
Second, the federal government needs to accelerate its targeted approach to international student enrolment through a simplified and streamlined “Recognized Institutional Framework” that incentivizes good performance and focuses on quality programming and students applying to Canada. Unfortunately, including master’s and PhD students under the international student cap will further discourage highly skilled students from coming to Canada, and add further delays to an already lengthy process.
Third, the federal government needs to work with the provinces, industry and the postsecondary sector to rebuild our brand so that Canada once again becomes a destination for top talent from around the world. Our country has lost our global reputation as a top destination for talent because of changes like the latest student-permit cuts.
As we continue to work with the Ontario government on ensuring greater financial sustainability for universities, we are urging the province to protect universities’ existing allocation of attestation letters from further cuts, and ensure that the province’s universities receive the full allocation of spaces needed for master’s and PhD students and other university-based programs, so we can continue to attract top talent from around the world.
It will take years to restore Canada’s brand as a desirable destination for highly skilled talent from around the world. So we need to act quickly to do so – our future prosperity depends on it.