Canada set to approve 30% fewer Post-Graduation Work Permits in 2025 as rules tighten
From new language proficiency rules to tighter eligibility for graduates of public-private partnership (PPP) colleges and non-degree programs, the policy overhaul is narrowing pathways to work in Canada after study
- Sep 27, 2025,
- Updated Sep 27, 2025 3:56 PM IST
Canada’s international education sector is facing its sharpest reset in years, with sweeping changes to the Post-Graduation Work Permit (PGWP) program reshaping opportunities for foreign students. From new language proficiency rules to tighter eligibility for graduates of public-private partnership (PPP) colleges and non-degree programs, the policy overhaul is narrowing pathways to work in Canada after study.
According to a new study by ApplyBoard, the impact of these reforms is already visible. Canada is projected to approve 143,600 PGWPs in 2025, 30% fewer than in 2024, with approvals in May and June falling more than 56% year-over-year. If the trend persists, full-year approvals could dip below 130,000, the lowest since the pandemic.
Officials say the changes are part of a broader effort to manage student inflows, alongside a national cap on new study permits. For students and institutions, however, the effect is stark: fewer graduates gaining work rights in Canada, a reduction that could erode one of the country’s biggest recruitment advantages.
“Ability to transition from study to work has long been a defining factor for students choosing Canada,” the report noted, warning that fewer PGWP approvals could make it harder for institutions to attract applicants.
Who Is Most Affected?
-
Colleges: College students accounted for 65% of approvals in H1 2025, with 48,000 permits issued. Their approvals declined just 25% year-over-year, but ApplyBoard cautions that this resilience is temporary as older cohorts cycle out.
-
Undergraduates: Only 6,700 approvals were granted in H1 2025, down 37% year-over-year, with approval rates dropping to 89%, the lowest of any level.
-
Master’s students: Nearly 12,000 approvals, down 31% compared to H1 2024.
Field of Study Shifts
Business and management programs now dominate, accounting for 44% of PGWP approvals in H1 2025, up five points year-over-year. Yet approvals in this field still fell 21%. Engineering, computing, IT, and health saw far steeper drops, engineering alone was down 53%, raising concerns about Canada’s ability to fill critical skills gaps.
Student Populations
Indian students remained the anchor, representing 59% of PGWP approvals, though volumes fell 29%. Chinese, Filipino, and Iranian students faced steep declines of 30–44%. By contrast, Nepalese students saw approvals jump 25% with a 99% success rate, while Nigeria and Ghana posted modest gains.
The Road Ahead
With the PGWP contraction redefining Canada’s appeal, universities and colleges are being forced to adapt. ApplyBoard concludes that institutions must align programs with labour market needs, strengthen ties with India while diversifying recruitment in emerging markets, and provide clearer career pathways—particularly for undergraduates.
“The PGWP downturn marks a turning point,” the study said, adding that how institutions respond will shape their ability to compete in an increasingly complex global education landscape.
Canada’s international education sector is facing its sharpest reset in years, with sweeping changes to the Post-Graduation Work Permit (PGWP) program reshaping opportunities for foreign students. From new language proficiency rules to tighter eligibility for graduates of public-private partnership (PPP) colleges and non-degree programs, the policy overhaul is narrowing pathways to work in Canada after study.
According to a new study by ApplyBoard, the impact of these reforms is already visible. Canada is projected to approve 143,600 PGWPs in 2025, 30% fewer than in 2024, with approvals in May and June falling more than 56% year-over-year. If the trend persists, full-year approvals could dip below 130,000, the lowest since the pandemic.
Officials say the changes are part of a broader effort to manage student inflows, alongside a national cap on new study permits. For students and institutions, however, the effect is stark: fewer graduates gaining work rights in Canada, a reduction that could erode one of the country’s biggest recruitment advantages.
“Ability to transition from study to work has long been a defining factor for students choosing Canada,” the report noted, warning that fewer PGWP approvals could make it harder for institutions to attract applicants.
Who Is Most Affected?
-
Colleges: College students accounted for 65% of approvals in H1 2025, with 48,000 permits issued. Their approvals declined just 25% year-over-year, but ApplyBoard cautions that this resilience is temporary as older cohorts cycle out.
-
Undergraduates: Only 6,700 approvals were granted in H1 2025, down 37% year-over-year, with approval rates dropping to 89%, the lowest of any level.
-
Master’s students: Nearly 12,000 approvals, down 31% compared to H1 2024.
Field of Study Shifts
Business and management programs now dominate, accounting for 44% of PGWP approvals in H1 2025, up five points year-over-year. Yet approvals in this field still fell 21%. Engineering, computing, IT, and health saw far steeper drops, engineering alone was down 53%, raising concerns about Canada’s ability to fill critical skills gaps.
Student Populations
Indian students remained the anchor, representing 59% of PGWP approvals, though volumes fell 29%. Chinese, Filipino, and Iranian students faced steep declines of 30–44%. By contrast, Nepalese students saw approvals jump 25% with a 99% success rate, while Nigeria and Ghana posted modest gains.
The Road Ahead
With the PGWP contraction redefining Canada’s appeal, universities and colleges are being forced to adapt. ApplyBoard concludes that institutions must align programs with labour market needs, strengthen ties with India while diversifying recruitment in emerging markets, and provide clearer career pathways—particularly for undergraduates.
“The PGWP downturn marks a turning point,” the study said, adding that how institutions respond will shape their ability to compete in an increasingly complex global education landscape.