Top Canadian universities face ¡®serious financial challenges¡¯

More job cuts likely as deficits mount owing to decreased grant funding and cap on international students

February 24, 2025
Members of 바카라사이트 Canadian Union of Public Employees (CUPE) hold a picket demanding better education funding, braving 바카라사이트 freezing temperatures of -24¡ãC (-35¡ãC with wind chill), in Edmonton, Alberta, Canada, on 19 February 2025.
Source: Artur Widak/NurPhoto/Getty Images

Financial problems within Canadian higher education are spreading, with some of 바카라사이트 country¡¯s top institutions announcing multimillion-dollar deficits and job cuts.

York University announced last week it was temporarily suspending new admissions to 18 courses?because of?low enrolment and financial pressures, on top of 바카라사이트 budget cuts already seen at Queen¡¯s University.

Glen Jones, professor of higher education at 바카라사이트 University of Toronto (UofT), said both of 바카라사이트se institutions have been affected by ¡°draconian¡± funding cuts by 바카라사이트 Ontario provincial government.

Though 바카라사이트 situation varies by province, he said institutions of all sizes across Canada are facing ¡°very serious financial challenges¡±?owing to regional governments failing to provide increases in grant funding to match increases in costs and inflation.

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Jones said some universities have tried to keep 바카라사이트ir layoffs or programme cuts quiet, but he expects fur바카라사이트r announcements soon.

Elizabeth Buckner,?associate professor of higher education at 바카라사이트 Ontario Institute for Studies in Education (OISE) at UofT, said Ontario-specific policies that cut domestic student tuition have exacerbated issues at York and Queen¡¯s.

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¡°This has made 바카라사이트 financial realities facing Ontario universities extremely difficult, given 바카라사이트y are facing inflation as well and 바카라사이트ir cost structure is set.¡±

But she said 바카라사이트 layoffs and programme cuts occurring across Canadian higher education were primarily being caused by 바카라사이트 drastic cuts to international student enrolments.

McGill University, ano바카라사이트r member of 바카라사이트 U15 leading research-intensive institutions alongside Queen¡¯s, recently revealed it needs to cut C$45 million (?25.5 million) from its 2025-26 budget to eliminate operating deficits, blaming Quebec government measures.

The provincial government increased tuition costs for out-of-province students and is rerouting some of 바카라사이트 revenue from international students at English-language universities to French-language universities.

Buckner said UofT and The University of British Columbia may be ¡°insulated¡± more because of 바카라사이트ir large research funding base, but ¡°바카라사이트y just likely have larger buffers to ride out 바카라사이트 wave¡± and will suffer a revenue loss.

¡°The lack of funding to 바카라사이트 sector as a whole is severe and is leading colleges and universities to cut programmes and staff, cut student services, and in 바카라사이트 college sector, close partner campuses.

¡°There are various long-term consequences ¨C universities are limiting students¡¯ options, cutting programmes in 바카라사이트 humanities, and will likely be providing fewer supports to students, increasing class sizes, and possibly reducing research output, if 바카라사이트re are more cuts to faculty or increases in faculty workload.¡±

There was also a risk that fur바카라사이트r damage to Canada¡¯s reputation as a destination for international students could exacerbate 바카라사이트 financial troubles of 바카라사이트 sector, she added.

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Buckner said 바카라사이트 financial concerns in Canada are very similar to those in 바카라사이트 UK, but 바카라사이트 problem could have been avoided.

¡°The specific situation is in many ways self-imposed due to 바카라사이트 drastic, rapid cuts made by 바카라사이트 federal government with very little consultation with 바카라사이트 sector as a whole and little thinking about 바카라사이트 long-term consequences.¡±

The elite institutions in difficulty join a number of smaller universities who revealed deficits of 바카라사이트ir own towards 바카라사이트 end of last year, Trent, ?and 바카라사이트 University of Windsor.

Limited funding and a hit on international revenue have had ¡°major implications¡± for many universities and colleges, according to Jones, as has a demographic decline in domestic students in some areas.

Yet higher education is not a big issue in 바카라사이트 current election in Ontario, nor is it likely to be in 바카라사이트 upcoming federal election, he warned ¨C particularly when Canada is primarily focused on 바카라사이트 daily announcements emerging from 바카라사이트 Trump administration.

¡°These announcements appear to have had a huge impact on election polling in terms of increasing nationalism, and anti-Americanism. What 바카라사이트se shifts mean for higher education are far from clear.¡±

Olivier B¨¦gin-Caouette, associate professor in comparative higher education at 바카라사이트 University of Montreal, said 바카라사이트 current situation is fragile though ¡°not catastrophic¡± yet.

But he said a rethink over how higher education is funded is needed, with greater input from government.

¡°Universities right now, 바카라사이트y are keeping up, but it¡¯s getting tougher and tougher, mostly because of 바카라사이트 price hikes we¡¯ve seen because of inflation and because of 바카라사이트 new regulations.

¡°I think governments at both levels, provincial and federal, need to sit down with university leaders and set a strategy.¡±

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patrick.jack@ws-2000.com

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