Canada is in the midst of reevaluating its Post Graduation Work Permit (PGWP) program to better serve the country’s economic needs. The PGWP, which currently offers international students an open work permit upon completing eligible studies at a Designated Learning Institution (DLI), is under scrutiny for potential reforms.
Recent insights from the IRCC Deputy Minister Transition Binder 2024 reveal a strategic shift towards aligning PGWP issuance with labour market demands. This means prioritizing work permits for international students entering occupations facing shortages while potentially reducing access for graduates from other programs. The expected timeline for implementing these changes is January 2025, pending guidance from the Minister in spring 2024.
To achieve this alignment, IRCC and Employment and Social Development Canada (ESDC) have undertaken efforts to map educational programs to job titles using Canada’s National Occupation Classification (NOC) and Classification of Instructional Programs (CIP) systems. This mapping ensures that international students gain skills that directly contribute to sectors vital to Canada’s economy. For example, specific programs of study are being linked to occupations such as construction trades or carpentry, reflecting current labour market demands.
The rationale behind these proposed changes is clear: by reshaping the PGWP program, Canada aims to address immediate skills shortages and bolster economic growth. Originally updated in 2008, the PGWP has seen a notable increase in work permits issued, underscoring its importance as a pathway for international graduates seeking Canadian work experience.
Furthermore, recent policy shifts by IRCC, such as the incorporation of temporary resident levels into the annual Immigration Levels Plan, highlight broader efforts to manage the impact of immigration on Canadian social services. These measures are designed not only to prioritize job opportunities for permanent residents and citizens but also to alleviate strains on healthcare and housing resources.
The potential implications of these PGWP revisions are significant for international students already studying in Canada, potentially affecting their prospects for permanent residency through gained work experience. As these changes unfold, stakeholders and prospective students alike will need to stay informed about how these reforms may reshape Canada’s immigration landscape.
Why is IRCC pursuing these changes to the PGWP program?
To reiterate, IRCC states that the “goal of re-aligning labour market needs is to facilitate access to work permits for students entering occupations in shortage, while reducing access for graduates from other programs.”
Canada’s PGWP program was last updated in 2008, to enable the issuance of open work permits to international graduates based on the length of their study. IRCC notes that between 2018 and 2023, work permits issued under the PGWP increased by 214%.
Sweeping changes announced by IRCC regarding temporary residence levels (those on a work/study permit or with a visitor visa, or electronic travel authorization (eTA)) in Canada, may reveal further government motivations.
Following the announcement of an international student cap in January of 2024, IRCC made the historic move of declaring the implementation of temporary resident levels to be included in the annual Immigration Levels Plan—for the first time in the country’s history. This move was facilitated to not just prioritize the hiring of permanent residents and citizens for jobs; but primarily as a method of reducing stress on Canada’s social systems (healthcare, housing, etc.) which have been put under considerable stress—via the reduction of new temporary residents to Canada annually.
