Proposed Changes to Canada’s PGWP Program: What You Need to Know

Canada's immigration system is considering significant changes to the Post Graduation Work Permit (PGWP) eligibility criteria. The PGWP, an open work permit for international students who complete eligible programs at Designated Learning Institutions (DLIs), may soon see new restrictions aligning with labor market needs.

Aligning PGWP with Labor Market Needs

According to the IRCC Deputy Minister Transition Binder 2024, these changes aim to facilitate access to work permits for students entering high-demand occupations while limiting permits for graduates from other programs. The Minister will provide advice on these changes in spring 2024, with the goal of implementing them by January 2025.

Stakeholder Feedback and Implementation

An internal survey from Immigration, Refugees and Citizenship Canada (IRCC) revealed methods to align educational programs with PGWP availability. IRCC and Employment and Social Development Canada (ESDC) have mapped job titles to programs of study, using Canada’s National Occupation Classification (NOC) system and the Classification of Instructional Programs (CIP) system. For example, the “carpenter” NOC is linked to programs like construction trades, carpentry, and woodworking.

Reason for Changes

The goal is to align labor market needs by granting work permits to students in occupations with shortages while reducing permits for other graduates. The PGWP program, last updated in 2008, has seen a 214% increase in work permits issued between 2018 and 2023. Additionally, IRCC's recent temporary residence cap aims to reduce stress on Canada’s social systems, including healthcare and housing, by limiting new temporary residents.

Implications for Immigration

The PGWP is crucial for international graduates seeking Canadian work experience, which is often required for permanent residence (PR) programs. Many federal and provincial PR programs, especially those targeting international graduates, require at least one year of relevant work experience. The proposed changes to the PGWP program could impact the eligibility of current and future international students for these PR programs.

Stay tuned for further updates as IRCC provides more details on these proposed changes and their potential impact on international students and Canada’s labor market.