One of the major reasons students choose to study abroad is to enable them to become eligible for better offers and opportunities whether in their home countries or abroad. This is exactly what the Post Graduate Work Permit aims to achieve when students complete their studies in Canada.
Over time, the number of international students seeking to study abroad generally has recorded a significant increase from the lockdown period and Canada is not an exception. As of 2023, Canada had over a million international students with active study permits, which is a 29% increase from 2022. This is almost 10% more than the 950,000 students the government had anticipated for 2023. For international students seeking to stay back in the country, processing the PGWP is a good place to start.
However, these numbers might not further surge in subsequent years due to the new policies put in place regarding the post-graduate work permit in Canada. In this article, we’ll explore the new post-graduate work permit policy in Canada and its effects on international students in the country. For more updates in the education space, subscribe to our newsletter.
Check: How to Get Canada’s Post-Graduation Work Permit: Important Things You Need to Know
Table of Contents
The Post-Graduation Work Permit (PGWP) in Canada is an open work permit that allows international students who have graduated from eligible Canadian institutions to work in Canada. The permit is part of Canada’s strategy to retain skilled international talent by giving graduates practical work experience in their field of study. To be eligible for a PGWP in Canada, you must meet all the eligibility requirements which include:
There are a few exceptions to the full-time study rule, such as:
Based on the announcement on February 15, 2024, students who complete a master’s degree program lasting at least 8 months but less than 2 years may qualify for a 3-year Post-Graduation Work Permit (PGWP). However, the length of your PGWP will depend on:
Consequently, subsequent announcements have come with various changes that will have a direct impact on students and schools alike in the country.
According to research, Canada has recorded an upward trajectory in the number of international students coming to study in the past five years. While it’s good to acknowledge that the country houses some top schools globally and this is one of the reasons for the surge; there are also other factors to consider.
In 2020 and 2022, the number of PGWP approvals in the country was above 120,000. However, there was a significant increase in 2023 which was above the government’s initial protections. Over 216, 000 PGWPs are approved for international students which is an increase of 67% from the figures recorded in 2022. In addition, the country also recorded over 1 million study permits this same year which is two times more than the 530,000 recorded in 2020.
According to a survey by ApplyBoard, obtaining post-graduation work opportunities was the second important factor that motivated international students to choose to study abroad. While studying in Canada comes with its perks and benefits, one of the strong motivations for students might just be access to a permit and work opportunities after graduation.
Read also: International students in Canada can work more hours per week starting this fall
On the 4th of October, 2024 the Minister of Immigration, Refugees and Citizenship in Canada announced two major changes to take effect from the 1st of November regarding the Post Graduate Work Permit issuance in the country. As a result of these new implementations, there is a likelihood of a decrease in the number of PGWPs in the coming months. Although these changes were specifically curated to align student outcomes with Canadian labour market needs, it will take a while for students to adjust to this policy and get used to the new additions. Speaking of the new additions, they include:
All applicants must demonstrate a minimum language proficiency in English or French. The required level is CLB/NCLC 7 for university graduates and CLB/NCLC 5 for college graduates. This proficiency level applies to all applications filed on or after November 1, 2024, using recognized language tests like IELTS or CELPIP in English and TEF Canada or TCF Canada in French.
Under this revised policy, college graduates or those from certain university programs must graduate in a field linked to Canada’s labour market needs. These fields include healthcare, agriculture, STEM, trades, and transportation. This is contrary to what was obtained before where the PGWP was more flexible, allowing graduates from a broader range of programs to qualify.
The study permit intake cap for 2025 and 2026 will be 10% below the 2024 cap.
Master’s and doctoral students will need to submit a provincial or territorial attestation letter.
There is no doubt that these new policies will have an impact on the number of PGWPs that will be approved in the coming months. These updates further mean that it’ll be more difficult for international students to process their work permits as these rules are more stringent than before. However, this is also a strategic approach to strengthen the workforce and in turn the economy in the country as this new policy aims to strengthen important areas in Canada’s system.
The recent changes to Canada’s Post-Graduation Work Permit (PGWP) requirements will have a significant impact on educational institutions across Canada. Colleges in Ontario are likely to feel the effect of this newly implemented policy.
In 2023 alone, the number of Ontario college graduates approved for a PGWP surged by nearly 120% compared to the previous year. This growth rate was considerably higher than the 20% increase seen in PGWP approvals for graduates from other provinces.
Ontario colleges may see changes in student demand due to new PGWP rules. While PGWP approvals may only slightly drop in 2024, further declines are expected in 2025 and beyond, as stricter study permit caps and field-specific limits come into play. Colleges will need to adapt their programs and recruitment efforts to attract international students.
Additionally, schools offering courses that align with the subject requirement of the PGWP policy will record a surge in the number of international students in the coming years. On the flip side, should who don’t prioritize these fields may have to review their curriculum and adjust accordingly.
Read also: How to obtain a Canada Work Permit with a Master’s degree
Furthermore, prospective international students will need to be strategic in their approach if they desire to further their studies in Canada and if they want to take advantage of the postgraduate work permit program.
Based on the recent policy, students’ preferences when it comes to courses will likely change to meet the policy standard. Fields like healthcare, agriculture, STEM, trades, and transportation will record a surge in the number of international students, however, this might take a while to reflect.
Moreover, this new policy is not only set to benefit the workforce and economy of Canada. Students who are skilled in these fields have a high chance of getting jobs inside and outside Canada as there is a surge in the demand for professionals in these fields generally due to its importance.
In conclusion, while studying abroad may seem like a perfect way to leave one’s country and start a new life in another, the Canadian government wants to be intentional with the quality of people they allow to study in the country. While they offer education, in return students who possess relevant skills will get the chance to employ their skills for the benefit of the country. While this might outrightly have an effect by causing a decline in the number of international students in the country and the number of PGWPs issued, in the long run, this policy is set to benefit the government, higher institutions and international students alike.
Do you want to study abroad? Note that obtaining a bachelor’s degree or a master’s degree in this field helps to improve your chances in the labour market. Studying abroad is no joke for international students due to the cost. However, you can achieve your dreams without breaking the bank by applying for student loans, which you can pay for as long as 10 years.
MPower Finance and Prodigy Finance are some of the best student loan providers for international students. They also do not require a cosigner or collateral before an application. Reach out to us today, and let’s help you begin the process.
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