The Problem

Colleges are in crisis, student futures are at risk

Our post-secondary education system is under stress. Years of underfunding have left colleges and universities increasingly reliant on high student fees, especially from international students. Now, sudden federal immigration policy changes have caused massive enrolment drops, forcing schools to cut jobs, close programs, and scale back essential student services. Without urgent investment, the future of post-secondary education in Canada is at stake.

Job losses and precarious work are on the rise

Underfunding has led to more temporary, contract, and part-time positions in the post-secondary sector, disproportionately affecting workers from equity-deserving groups. With enrolments dropping, schools are responding with hiring freezes and layoffs, pushing academic and support staff into even more precarious work conditions.

Canada's future workforce is at risk

Colleges and universities train the next generation of health care workers, skilled trades workers, and tech professionals—but funding gaps are making it harder for students to access affordable, high-quality education. If we don’t fix this now, Canada will face even more severe labor shortages, affecting our economy and essential services.

Colleges and universities are struggling to stay alive

Public funding for colleges has plummeted—dropping from 67% of total revenue in 2008 to just 48.5% today. Institutions have been forced to rely on student tuition, with international students paying the highest price. With fewer international students now enrolling, schools face budget shortfalls leading to layoffs, program cuts, and even campus closures.

Solutions

The federal government needs to support struggling colleges and protect Canada’s future workforce by committing to the following solutions.

1. Provide emergency funding to public colleges and universities

The federal government needs to inject emergency funding into public colleges and universities to prevent cuts to programs, services, and jobs. These funds should be restricted to supporting programs, services, and staff, not capital expenditures or administration, and be accompanied by a long-term strategy for funding.

2. Expand the number of public college programs eligible for the PGWP program

The federal government’s recent changes to the Post-Graduatation Work Permit unfairly limit opportunities for many international students to stay and contribute to Canada’s economy. Looking at national labour market shortages to determine which programs would be eligible can overlook shortages at a provincial, territorial or local level. Programs like business, hospitality, and other service industries—sectors that are essential to Canada’s economic strength—are now excluded from PGWP eligibility. Without the ability to work after graduation, many talented students will be forced to leave, worsening labour shortages in key industries. Canada needs to expand the PGWP eligibility criteria to include more programs/fields of study at public colleges, working with the colleges and local governments to determine local labour market needs.

3. Support for international students and workers in Canada

The federal government introduced the international student policy changes in response to a public debate around the cost-of-living crisis in Canada. Critics blame immigration for the lack of access to affordable housing and challenges facing our public services like health care. But international students and others are being scapegoated for problems that they did not cause and are themselves affected by.

We must reject the undercurrent of racism and xenophobia that’s too often present in debates surrounding immigration. International students and graduates are valuable members of our communities. They are our coworkers, classmates, and neighbours. As we continue to see staffing shortages in many sectors and an aging population in Canada, we should be welcoming and investing in those who wish to come study and work here.

The federal government needs to protect international students and graduates, including those already working in Canada and with permits expiring, have a pathway to permanent immigration status. Governments need to stop scapegoating international students, migrant workers, and immigrants, and deal with the real issues in PSE and areas like housing and health care, as we’ve advocated elsewhere.

4. Strengthen the federal role in funding: dedicated PSE transfer and legislation

Although post-secondary education falls under provincial jurisdiction, both the federal and provincial governments provide funding. Over the past several decades, the federal government has significantly decreased the amount it provides to colleges and universities. The federal government must renew its role in funding these institutions.

We need the federal government to develop a dedicated funding transfer for PSE. This must be supported by a federal Post-secondary Education Act that would outline conditions on the funds to ensure that public funding goes towards a PSE system that is publicly administered, accessible and affordable to all, and high quality.

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