Canada: Nearly half of Toronto-Area immigrant agencies expect programme closures

The warning follows a recent survey of local agencies providing services such as language training, employment assistance and housing support, highlighting concerns about service disruptions amid shrinking federal budgets.

A survey of 48 newcomer-serving agencies conducted by United Way Greater Toronto, the Ontario Council of Agencies Serving Immigrants and the City of Toronto found that 44% expect programme closures in the near future. Another 56% anticipate service disruptions because of declining funding.

Jessica Kwik, director of the Peel Newcomer Strategy Group, said cuts are particularly affecting advanced language training programmes, which she described as essential for newcomers seeking employment.

“We’re seeing that erosion where if people aren’t able to get employment, there’s going to be income insufficiency around housing,” she said, as quoted by The Canadian Press.

“A lot of the people who come to settlement services are families with children," he added.

Settlement agencies receive funding based largely on projected levels of new permanent resident arrivals.

The federal government began reducing immigration targets last year, lowering the number of new permanent residents it plans to admit and cutting Immigration, Refugees and Citizenship Canada’s budget by $317.3 million starting in the 2024 fiscal year, CityNews Toronto reported.

Stephanie Procyk, research director at United Way Greater Toronto, said demand for settlement services has surged since 2020, outpacing available resources.

“We know that demand has grown by 70% while capacity has only grown by 40%,” she said, according to The Canadian Press. “So we’re continuing to crunch that capacity.”

The survey also found that 68% of agencies anticipate layoffs between now and 2028, projecting a combined loss of about 310 jobs, with language instructors among those most affected, according to Ground News.

Advocates warn that funding cuts could lead to longer wait times, staff burnout and reduced support for refugees and other newcomers who rely on settlement programmes.

Procyk said the impact may extend beyond individual clients, affecting broader community well-being and long-term social cohesion.

Without stable and predictable funding, agencies say they may struggle to maintain essential services at a time when Canada continues to manage high levels of immigration and asylum claims.