Alarm bells went off when the Canadian government capped international student numbers in January 2024. Universities across Atlantic Canada are bracing for significant challenges following the government’s decision to cap international student enrolment. The impact is already being felt as the region faces a dramatic decline in student numbers and financial contributions. A recent report from the Association of Atlantic Canadian Universities underscores the gravity of the situation. The cap on international student permits will cost Atlantic Canadian universities nearly 3,000 students, with an estimated $163 million in lost spending that would otherwise have flowed into the local economy. This loss is stark and has left institutions that rely heavily on international tuition fees reeling. Foreign student fees are typically three to four times higher than those for domestic students. Patrick Brannon, a senior researcher at the Atlantic Economic Council, said the report illustrates how vital international students are to the economy. Consequences Of International Student Decline A report by Gardner Pinfold Consultants Inc. of New Brunswick said the cap would result in the loss of 2,231 full-time equivalent jobs and $20 million in provincial tax revenue—an indication of how vital international students are to Atlantic Canada’s broader economy. The report examines key areas of student spending, including tuition, living expenses, and money spent by visiting friends and family. International students have been a lifeline for many universities, particularly those in smaller communities, keeping enrollment numbers and revenues stable in an era of declining domestic student numbers. “The main issue is that this cap will have a significant ripple effect, not just on universities but on the broader economy,” said Brannon. “Fewer international students mean fewer people spending on retail, food, and rent. This will inevitably affect the local economy in meaningful ways.” Global News reported in July that universities in Atlantic Canada were worried about the expected significant drop in foreign student enrollment due to caps imposed by the federal government. The report said Nova Scotia had accepted less than 4,000 international students by July for the academic year, down from the previous year’s 19,900. Substantial Drop In International Student Numbers In September alone, university enrollment across the region fell by 2,983 students, a substantial drop to 23,237. Nova Scotia was the hardest hit, with 2,091 fewer international students, followed by Newfoundland and Labrador, which saw a decrease of 747 students. Cape Breton University, which had previously made strides in recruiting international students, will lose more than 1,100 students due to the cap. The university, which saw its enrollment soar to 9,100 students in recent years, now faces the daunting task of reducing that number to 7,000 by 2027. The effects of this enrollment decline are likely to be felt in other sectors as well. A June report from Global Affairs Canada noted that international students contributed $30.9 billion to the Canadian economy in 2022, supporting approximately 360,000 jobs nationwide. As the number of international students drops, so will their contributions to local and national economies. Canada Labour Market Shortages The cap comes at a time when international students were already struggling. After the pandemic, the federal government increased immigration targets to address labour shortages in lower-paying sectors, leading to a surge in temporary foreign workers and international students. However, this increase worsened existing challenges, such as the housing crisis, as more people competed for limited rental units. The cap, which aims to reduce the number of temporary residents to 5 percent of the population by 2026, is intended to ease some of these pressures. Still, international students are caught in the crossfire. Marc Miller, Canada’s Immigration Minister, recently announced that the government would cut the number of study permits issued to international students by 35 percent over the next two years. A further reduction of 10 percent is expected in 2025, prompting fears of even more significant financial strain on Atlantic Canada’s universities. Rob Summerby-Murray, chair of the Association of Atlantic Canadian Universities and president of Saint Mary’s University, expressed deep concern over the cuts, stating that they have already had a “devastating effect” on the region’s 16 universities. “The lack of recognition by federal officials of the negative implications of this reduction is disappointing,” he said. “The lack of recognition among IRCC officials for the incredibly negative implications this additional reduction in study permits will have on our institutions and region is disappointing,” he said in a press release. International Student Post-Graduation Plans Although Ontario’s colleges are also grappling with declining enrollment due to the cap, Atlantic Canada is particularly vulnerable. The region has worked tirelessly to attract international students, many of whom choose to stay in Canada after graduation, contributing to the local economy and helping to fill labour shortages in critical sectors such as healthcare, engineering, and information technology. Provincial governments are collaborating with universities to develop strategies to make Atlantic Canada more attractive to international students. These initiatives include improving visa support, addressing housing shortages, and enhancing student services to support better those who choose to study in the region. However, despite these efforts, the cap on international students is expected to have a long-lasting impact on Atlantic Canada. “This decline is a significant loss for a region that has been working hard to grow its population,” said Peter Halpin, president of the Association of Atlantic Universities. “International students are vital to the financial sustainability of our universities and play a crucial role in our communities’ social and economic fabric.” New Markets For International Students In response to these challenges, many regional universities are ramping up their international recruitment efforts, targeting new markets in Latin America, Africa, and Southeast Asia. They seek to diversify their student base beyond traditional countries like China and India, hoping to deal with the impact of the federal cap and ensure their long-term sustainability. If the situation is not addressed with effective policies and support, Atlantic Canada could face continued population decline and slower economic growth, further complicating efforts to address labour shortages and revitalize regional economies. This makes the international student cap an educational issue and a broader economic concern for Atlantic Canada’s future. Atlantic Canada International Student Decline FAQ What caused the decline in international student numbers at Atlantic Canada universities? The decline in international student numbers stems from the Canadian government’s decision in January 2024 to cap the number of study permits issued to international students. This policy was introduced to address broader issues like the housing crisis and overpopulation in certain regions. Unfortunately, this cap has disproportionately impacted Atlantic Canada, which relies heavily on international students for enrollment and financial sustainability, leading to a sharp decline in student numbers. How much financial impact will the cap have on Atlantic Canadian universities? The cap on international student permits is projected to cost Atlantic Canadian universities nearly 3,000 students and approximately $163 million in lost spending. This financial hit comes from decreased tuition revenue, which is much higher for international students, and lost spending on local businesses and housing. The broader economic impact includes the loss of over 2,000 full-time jobs and $20 million in provincial tax revenue, adding to the financial strain on the region. Why are international students so important to Atlantic Canada’s economy? International students contribute significantly to Atlantic Canada’s economy by paying higher tuition fees and spending on housing, food, and other local services. Their presence supports thousands of jobs in the region, including in retail, hospitality, and education. Many students also stay in Atlantic Canada after graduation, filling critical roles in sectors like healthcare and technology. The decline in international student numbers affects not only universities but also the broader economic stability of the region. What are Atlantic Canadian universities doing to address the decline in international students? To combat the decline in international student numbers, universities in Atlantic Canada are increasing their recruitment efforts in new markets like Latin America, Africa, and Southeast Asia. They are also working with provincial governments to improve visa support, address housing shortages, and enhance services to better support international students. These efforts aim to diversify the student base and ensure the financial sustainability of universities amid the federal cap on international student enrollment. How does the decline in international students affect Atlantic Canada’s population growth? Atlantic Canada has relied heavily on international students to bolster its population, especially as domestic enrollment numbers decline. Many international students choose to stay in the region after graduation, contributing to population growth and filling labor shortages in critical sectors. The decline in international student enrollment jeopardizes these efforts, making it harder for the region to grow its population, address labor shortages, and support economic revitalization efforts in smaller communities. https://immigration.ca/atlantic-canada-universities-face-dramatic-decline-in-international-student-numbers/
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