The sharp decline in international student enrolment at Okanagan College (OC) has left the institution grappling with an $8.3 million deficit for the 2025-26 fiscal year. This financial hole is not just a challenge for OC; it is a symptom of a broader economic shift in Canada, one that could have lasting repercussions for post-secondary institutions, local economies, and the overall job market.

The Immediate Financial Fallout

The revenue shortfall at OC, largely due to a projected $13.4 million loss in international student tuition, underscores the financial reliance that Canadian colleges and universities have on international enrolments. International students often pay significantly higher tuition fees than domestic students, providing a crucial source of funding for many institutions. With OC now planning for nearly half as many international students in the coming academic year, the budget strain will likely result in difficult cost-cutting measures, including workforce reductions and program adjustments.

OC President Neil Fassina has indicated that while some financial losses may be mitigated by internal adjustments, the process will involve one-time costs and workforce restructuring. The potential layoffs of more than 30 employees in the arts, foundation programs, and the School of Business further highlight the real-world consequences of this financial shortfall.

The Broader Economic Implications

The challenges facing OC reflect a larger trend that could reshape Canada’s post-secondary landscape. Federal policy changes—most notably the cap on international study permits—have led to a nationwide decline in international student enrolment. While these policies were introduced to address concerns about housing shortages and system integrity, they are now having unintended economic consequences.

Many communities, particularly in smaller urban and rural areas, rely on international students as economic drivers. These students not only pay tuition but also contribute to local economies through housing, transportation, food, and retail. A significant drop in international enrolment could mean fewer jobs and reduced revenue for businesses that depend on student spending.

Beyond immediate economic concerns, declining international enrolment could have long-term effects on Canada’s workforce. Many international students transition to permanent residency and fill essential roles in industries facing labor shortages. A sharp decline in this student pipeline could exacerbate workforce gaps in fields like technology, healthcare, and engineering, potentially stunting economic growth.

What’s Next for Canadian Post-Secondary Institutions?

With colleges legally required to balance their budgets, OC’s situation may foreshadow similar financial crises at other institutions across Canada. Universities and colleges must now navigate a challenging landscape, balancing financial sustainability with the need to maintain academic excellence and accessibility.

To adapt, post-secondary institutions may need to:

  • Diversify their revenue streams beyond tuition, including corporate partnerships, government funding, and research grants.
  • Invest in domestic recruitment strategies to bolster enrolment from local students.
  • Develop more online and hybrid learning options to attract international students who may not be able to relocate to Canada.
  • Advocate for policy adjustments that allow a more sustainable approach to international student enrolment.

A Call for Policy and Economic Adaptation

The financial struggles of OC are not isolated—they are a sign of broader economic and policy challenges that require careful navigation. As Canada reassesses its approach to international education, policymakers must consider the economic role that international students play while balancing concerns about housing and system capacity.

For businesses, educators, and policymakers alike, this is a pivotal moment. Strategic planning and adaptive measures will be necessary to ensure that Canada’s post-secondary institutions remain financially viable while continuing to serve both domestic and international students. The decline in international student numbers may be a wake-up call, but it is also an opportunity to reshape the future of education and economic growth in Canada.

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Jenny is a business insurance broker with Waypoint Insurance. She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

Tags:  #Jenny Holly Hansen #International Students #Student Tuition #President Neil Fassina #Employee Layoffs

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