Mar 8, 2026
Earlier this week, the Algonquin College board of governors voted unanimously to suspend 30 programs. This is a move college officials say is necessary to address ongoing financial pressures and declining enrolments. The cuts, set to take effect in fall 2026, mean no new students can start these programs, though current students will be able to complete their studies.
For residents of Ottawa and other college towns, the decision underscores a reality many already feel: the reduction in the number of international students in post-secondary institutions in Canada is impacting more than class sizes. Local economies, jobs and the businesses that thrive around them are feeling it, too.
What’s driving the cuts
College leaders point to several pressures: funding shortfalls, declining domestic and international student numbers, and evolving labour market demand. In a January memo (1), Algonquin’s senior vice-president of academics said the program suspensions were “a necessary response to rapid and significant shifts in the postsecondary landscape, including enrolment volatility and changing labour market and student demand.”
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At the March board meeting, college president Claude Brulé described the move as a matter of long-term sustainability (2). “We must ensure that our operational expenses do not exceed our revenue,” he told the board. Officials also shared figures showing a notable drop in international student enrolment, which directly cut tuition revenue and made it harder to maintain smaller or specialized programs.
International student decline and its economic ripple
Algonquin’s challenges reflect a broader Canadian pattern. Federal policy changes in 2024 and 2025 tightened study permit rules and capped the number of international students entering Canada. The immediate effect: many colleges, including Algonquin, saw international enrolment drop by more than 50%, and overall international student numbers fell about 21% nationally in 2025.
International students pay tuition four to five times higher than domestic students. That revenue not only funds classrooms and faculty but also supports programs that may otherwise operate at a deficit. When the flow of tuition shrinks, colleges must cut costs, consolidate programs, and in some cases, suspend offerings entirely.
The impact extends beyond the campus. According to the Canada Mortgage and Housing Corporation, areas with large student populations saw vacancy rates rise and rent growth slow. In Ottawa, for example, purpose-built two-bedroom apartment rents rose just 5.1% to $1,550 in 2025, down from faster growth the year before. Local businesses — cafes, restaurants, transit services — also adjust to fewer customers as student populations decline.
The bigger picture
Taken on its own, Algonquin’s decision might look like an internal college budgeting move. But it’s actually a stark reminder of how interconnected local economies really are.
When international students disappear, the effect doesn’t stop at the classroom. Fewer students can mean softer rental demand, quieter restaurants and fewer part-time jobs in neighbourhoods built around campus life. Landlords may see vacancies rise. Small business owners may notice slower foot traffic. Even homeowners can feel the shift if local economic momentum cools.
Government policy, immigration rules and post-secondary funding might sound abstract, but they can quickly influence rent levels, job opportunities and local business activity.
In other words, what happens on campus rarely stays there. And if you live, work or invest in a college town, decisions like this one are worth keeping on your radar.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Algonquin College (1); Ottawa Citizen (2)
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Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
