Sharp Decline in Post-Graduation Work Permits Set for 2025 in Canada

Canada is on track to approve substantially fewer Post-Graduation Work Permits (PGWPs) in 2025, as the federal government implements stricter eligibility measures for international graduates. The reduction is among the most pronounced in recent years and reflects Ottawa’s broader strategy to reduce the temporary resident population while reshaping international education policy.

Declining Numbers of Work Permits

Data compiled by ApplyBoard indicates that only 143,600 permits are projected to be issued this year, compared with 205,117 in 2024. Between January and June, just 75,000 PGWPs were approved, representing a 29 percent decrease from the same period last year. The steepest declines occurred in May and June, when approvals fell by more than 56 percent year over year. Should this trend continue, total approvals may fall below 130,000 by the end of 2025 — the lowest level since the COVID-19 pandemic.

Policy Changes Driving the Decline

Immigration, Refugees and Citizenship Canada (IRCC) has introduced several reforms aimed at curbing growth in temporary residents and strengthening program standards. These include:

• Higher minimum language proficiency requirements;
  
  
• New restrictions on graduates of public–private partnership colleges;
  
  
• Reduced eligibility for non-degree programs.
  
  

The government has emphasized that these adjustments are intended to ensure the program continues to support labour market needs while avoiding over-reliance on temporary workers.

Distribution by Level of Education

The composition of PGWP approvals has shifted under the new rules:

• 65 percent of permits were issued to college graduates (up from 62 percent in 2024),
  
  
• 17 percent went to postgraduate students (unchanged),
  
  
• 9 percent to university undergraduates, marking their lowest share in several years.
  
  

Analysts expect the share of college graduates to decline in the future as transitional exemptions are removed and the new restrictions take full effect.

Field of Study Breakdown

Graduates in business and management programs accounted for the largest share of PGWPs in early 2025, representing 44 percent of approvals — the highest in five years. Other major categories included:

• 15 percent computing and IT,
  
  
• 10 percent health and general sciences,
  
  
• 9 percent arts, social sciences, and humanities,
  
  
• 6 percent engineering,
  
  
• 16 percent in other disciplines.
  
  

However, with many college-level business programs losing eligibility, a gradual shift toward STEM and health-related fields is anticipated in the coming years.

Countries of Origin

India remains the leading source country for PGWP recipients, with 43,803 approvals in the first half of 2025. Other top countries included:

• China (4,129),
  
  
• Nigeria (3,831),
  
  
• Philippines (3,418),
  
  
• Nepal (2,280),
  followed by Bangladesh, France, Iran, Colombia, and Algeria with smaller numbers.
  
  

Although approvals are declining across all source countries, India’s dominance underscores its central role in Canada’s international student population.

Economic and Policy Implications

The PGWP has long been regarded as a cornerstone of Canada’s appeal to international students, offering a pathway to Canadian work experience and, for many, eventual permanent residence. The contraction in approvals raises concerns about labour market pressures, particularly in sectors facing persistent shortages such as healthcare and information technology.

Education stakeholders warn that reduced access to post-graduation work opportunities may also hinder Canada’s competitiveness in attracting international students, a sector that contributes significantly to the national economy.

Outlook

The sharp decline in PGWP approvals marks a turning point in Canada’s approach to temporary residency and international education. While the government seeks to balance labour market needs with housing and demographic pressures, the reduced availability of work permits will test Canada’s ability to maintain its reputation as a leading destination for global talent

 

FAQ

1. What is the main goal of the Start-Up Visa Program?

Answer:
To attract innovative entrepreneurs who can start businesses in Canada that create jobs and compete globally.

2. What are the four main requirements to qualify for the program?

Answer:
A qualifying business, a Letter of Support from a designated organization, language proficiency (CLB 5 or higher), and proof of settlement funds.

3. Who can issue a Letter of Support?

Answer:
Only designated organizations such as venture capital funds, angel investor groups, or business incubators approved by IRCC.

4. How much investment is needed from a designated organization?

Answer:

• Venture Capital Fund: at least $200,000
  
  
• Angel Investor Group: at least $75,000
  
  
• Business Incubator: no minimum investment, but acceptance into the program
  
  

5. What is the purpose of the optional Open Work Permit (OWP)?

Answer:
It allows applicants to live and work in Canada while developing their start-up business before their permanent residence is approved.

6. What is the minimum language requirement for the program?

Answer:
Canadian Language Benchmark (CLB) level 5 in listening, reading, writing, and speaking in English or French.

7. Why must applicants show proof of settlement funds?

Answer:
To prove they can support themselves and their families after arriving in Canada without borrowing money.

8. Why is verifying designated organizations on the IRCC website important?

Answer:
To avoid fraud and ensure that the Letter of Support comes from an officially recognized organization