The Canadian government is proposing major amendments to the Post-Graduation Work Permit (PGWP) program, in a plan that will impact Indian students. Canada plans to limit PGWP benefits to only graduates of courses that help fill roles in sectors with labour shortages.

As of September 1, international students enrolled in private colleges in Canada will no longer be automatically eligible for PGWP benefits.

Indian students constitute the largest group of international students studying in Canada. Nearly 40% of the 8 lakh international students in Canada are IndiansAccording to Canadian government data, most of these Indian students choose Canada because it offers an easy path to permanent residence and citizenship.

PGWP, an important route International students seeking employment and permanent residence in Canadahas seen a significant increase. In 2023, the number of PGWPs issued increased by 214% compared to 2018.

The ability to work with a PGWP after graduation and the possibility of obtaining permanent residency through work experience is a significant driver of growing demand.

However, with these changes, Canada is aligning graduates’ eligibility more closely with labour market demand.

Canada will prepare courses to suit the needs of the labor market

Post-graduation work permit (PGWP) holders account for 26% of the international mobility programme, which exempts them from Labour Market Impact Assessment (LMIA).

According to Immigration, Refugees and Citizenship Canada (IRCC), the government’s goal is “to align PGWP eligibility with labour market needs, while reducing the overall number of PGWP holders”.

This strategy aims to link PGWP eligibility to study programmes in labour shortage sectors, which may lead to a reduction in the number of international students and PGWP holders when stricter criteria are applied to programmes deemed less relevant to the labour market.

On January 22, 2024, IRCC introduced new measures aimed at reducing the number of international students eligible for the PGWP.

From September 1, 2024, students enrolled in course licensing arrangements at private colleges will no longer qualify for the PGWP.

Additionally, graduates of master’s programs, known for their ability to excel in the Canadian job market and obtain permanent residence, will soon qualify for a three-year PGWP, regardless of the duration of their program.

According to IRCC, “the goal of realigning labor market requirements is to ease access to work permits for students entering shortage occupations, while reducing access for those graduating from other programs.”

The document shared by Student Rights on X says, “IRCC is working with Designated Learning Institutions (DLIs) and provincial governments to improve the #PGWP program and integrate it with the education sector. Major reforms to the PGWP program could change the face of study pathways in Canada.”

StudentsRight is an official Twitter community of international students who wish to immigrate to Canada but are facing several challenges in obtaining a visa.

According to IRCC, advice on changes to the Post-Graduate Work Permit (PGWP) will be provided to Immigration Minister Marc Miller in spring 2024, with the goal of implementing them in January 2025.

Student passport expiry and PGWP validity

The Postgraduate Work Permit (PGWP) program allows international students who have completed programs from Designated Learning Institutions (DLIs) to work in Canada and gain experience in their fields.

The duration of the permit ranges from eight months to three years, depending on the length of the student’s study program.

However, if a student’s passport expires before the PGWP, the permit’s validity corresponds to the passport’s expiration date.

The PGWP is an important step for many students striving for permanent residence (PR) in Canada.

Indian students form the largest group of international students studying in Canada. According to Canadian government data, about 40% of the 8 lakh international students currently studying in Canada are Indians.

IRCC reported that the demand for PGWPs is projected to increase by 214% in 2023 compared to 2018.

Access to work opportunities after graduation through the PGWP and the possibility of permanent residency based on that work experience is a major driver behind this growth.

Currently, PGWP holders account for 26% of the International Mobility Programme, a Labour Market Impact Assessment-free stream for temporary foreign workers.

Measures taken by the Canadian Government to reduce the amount of PGWP

In addition to these proposed changes, IRCC has implemented measures to reduce the number of PGWP holders.

From September 1, 2024, international students undertaking study programmes under the course licensing arrangements will no longer be eligible for the PGWP.

These programmes involve private colleges offering curriculum from public colleges, and have seen significant growth, but lack the oversight of public institutions.

In addition, graduates of master’s degree programs will soon be eligible for a three-year PGWP, even if their program of study was less than two years long. This change recognizes the ability of master’s degree graduates to succeed in the Canadian labour market and transition to permanent residence.

According to IRCC, as of December 30, 2023, 80% of study permit applications were processed within 58 days, and within 77 days for study permit extensions, both of which are shorter than the service standard timelines of 60 days for study permits and 120 days for extensions.