The federal government has formally asked all provinces and territories for feedback on new PGWP rules that would “reduce the number of permits issued and align eligibility with labor-market needs,” according to The PIE Newswhich obtained copies of the consultation letters.
The proposal would mark one of the most significant policy shifts in Canada’s international-education system in more than a decade. Ottawa is considering limiting PGWPs only to graduates from programs tied to fields facing documented labor shortages, a list expected to prioritize health care, skilled trades, STEM, logistics and some areas of finance.
Immigration, Refugees and Citizenship Canada (IRCC) has already confirmed publicly that PGWP eligibility will be restructured to “better support Canada’s long-term labor priorities,” PIE News reported.
The timeline remains uncertain. Federal officials are still deciding whether the new rules should apply immediately to all international students, including those currently studying, or only to new enrollees in upcoming academic years. Institutions have warned that an abrupt rollout could cause widespread disruption, especially for students who selected their programs based on the assumption that a PGWP would follow.
The potential impact is enormous. According to IRCC, there were 243,294 new Post-Graduation Work Permit holders in 2023, more than triple the 74,480 recorded in 2018. The PGWP is also a crucial step on the path to permanent residency (PR): surveys by the Canadian Bureau for International Education (CBIE) show that more than 70% of international students intend to apply for a PGWP, and around 60% plan to use it to qualify for PR.
Policy analyst Earl Blaney told PIE News that reform is necessary but warned that large, sudden cuts would be “extremely irresponsible,” leaving many students stranded after investing significant tuition, time and savings. He argued that unless Ottawa provides strong justification and clear transition periods, Canada risks undermining its reputation as one of the world’s most welcoming destinations for international education.
Labor-market data continues to show acute shortages in health care, especially nursing, physicians, medical lab technicians and personal support workers, due to the country’s rapidly aging population.
Immigration-focused platforms such as Immigration Canada note ongoing shortages in technology, skilled trades, logistics and financial services, sectors expected to play a major role in determining which programs remain PGWP-eligible.
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