Canada's New PGWP Regulations: A Potential 30% Decrease in Approvals by 2025
Canada's Work Permit Update: Significant Changes Ahead
For countless international students, Canada represents a prime location for pursuing higher education and advancing their careers. A major factor contributing to this appeal is the Post-Graduation Work Permit (PGWP) program, which permits graduates to work in Canada for a duration ranging from eight months to three years following their studies. However, recent data and impending policy modifications indicate that 2025 may pose significant challenges for students aspiring to remain and work in Canada.
Projected Decline in Approval Rates
According to a recent analysis by ApplyBoard, it is anticipated that PGWP approvals could decrease by nearly 30% in 2025 compared to 2024. The report forecasts that the number of permits issued this year may fall to approximately 130,000, representing the lowest figures since the onset of the COVID-19 pandemic.
This downward trend was already evident earlier this year, with approvals in May and June 2025 dropping over 56% year-on-year. If this pattern persists, Canada could issue around 143,600 fewer permits than the previous year, posing a significant setback for graduates relying on Canadian work experience.
New Eligibility Criteria
Several recent government policy adjustments are contributing to this notable decline:
- Increased Language Proficiency Requirements: Applicants are now required to demonstrate enhanced proficiency in English or French to qualify.
- Restrictions on Certain Institutions: Graduates from public-private partnership colleges are no longer automatically eligible for the PGWP.
- Limitations on Non-Degree Programs: Students completing non-degree or short-term programs are facing additional challenges.
- Reduction in Study Permits: Canada has also decreased the issuance of new study permits to manage the overall international student population.
These measures aim to regulate the rapid increase in foreign student enrollment, but they also complicate the process for legitimate graduates wishing to remain and work in Canada.
Impact on Different Educational Levels
Data from the first half of 2025 indicates a significant decline across various educational levels:
- College Graduates: Accounted for 65% of total approvals, approximately 48,000 permits, yet experienced a 25% year-on-year decrease.
- Undergraduates: The most affected group, with approvals plummeting by 37%, resulting in only 6,700 permits and an 89% acceptance rate.
- Master’s Graduates: Issued around 12,000 permits, reflecting a 31% decline compared to the first half of 2024.
The field of study also plays a crucial role. Business and management programs remained the most sought-after, comprising 44% of approved permits, but even they saw a 21% drop in approval rates. Graduates in engineering, computing, IT, and healthcare are also encountering increasing difficulties in obtaining PGWPs.
Implications for International Students
For those intending to study in Canada, these changes highlight the importance of thorough preparation. Strong language skills, enrollment in recognized public institutions, and the selection of degree-level programs are now more vital than ever. Prospective applicants should keep an eye on updates from Immigration, Refugees and Citizenship Canada (IRCC) to stay informed about changing requirements.
Conclusion
Canada continues to be a desirable destination for high-quality education and career opportunities. However, with stricter PGWP regulations and an anticipated 30% reduction in approvals, international students must adopt strategic planning to secure post-graduation work opportunities. Selecting the right program, excelling academically, and fulfilling enhanced language requirements could be crucial in realizing the Canadian career aspiration.