Canada has introduced significant updates to its post-graduation work permit (PGWP) eligibility rules, with immediate implications for international students, particularly those enrolled in non-degree programs. The update, which took effect on June 25, 2025, aligns with broader immigration policy reforms and labour market priorities under the country’s Express Entry system.
The post-graduation work permit is a key pathway for international students to gain Canadian work experience and eventually transition to permanent residency. However, recent adjustments signal a more focused and selective approach, aimed at matching international education to real workforce needs.
What changed in 2025
According to Immigration, Refugees and Citizenship Canada (IRCC), only students enrolled in eligible fields of study linked to jobs in long-term labour shortages will qualify for a PGWP if they are in non-degree programs, such as diplomas and certificates. The updated list, released on June 25, 2025, now includes 920 approved fields of study. This reflects:
-
The addition of 119 new fields in key sectors such as healthcare, education, skilled trades, and social services.
-
The removal of 178 fields no longer aligned with occupations experiencing shortages.
This revision directly connects Canada’s international student policies with the country’s labour market priorities and immigration strategies, particularly the Express Entry system that targets in-demand occupations.
Who is affected
Students who applied for their study permit on or after November 1, 2024, are subject to the new PGWP eligibility rules. Those who applied before June 25, 2025, however, are grandfathered into the previous eligibility list, even if their field of study has now been removed.
This means future international students must now carefully assess not only their program’s academic offerings, but also whether it aligns with the updated PGWP eligibility list.
Impact on Canada’s immigration strategy
This change is part of a broader strategy by the Canadian government to address a slowdown in population growth, infrastructure strain, and an overloaded housing market. In early 2025, Canada’s population growth rate hit 0.0%, its lowest since the pandemic, according to Statistics Canada. The number of temporary residents, including international students, dropped by over 61,000 in Q1 2025.
To manage this, Canada has introduced caps on study permits, reduced permanent resident targets for 2025, and restructured spousal work permits. The post-graduation work permit update is the latest in a series of measures aimed at controlling the volume and improving the quality of immigration flows.
Why PGWP is important
The PGWP has long been a key incentive for students to choose Canada. It allows them to stay and work in the country for up to three years after graduation. This experience can be used to strengthen their case when applying for permanent residency under programs like Express Entry or the Provincial Nominee Program.
By narrowing PGWP eligibility, Canada is encouraging students to choose programs that directly contribute to sectors facing talent shortages. For example, fields in nursing, elder care, early childhood education, and construction trades are more likely to remain on the eligible list.
Express Entry connection
The PGWP changes also sync with Canada’s Express Entry reforms. Since early 2024, Express Entry has begun issuing invitations based on specific occupations and fields of study, rather than only Comprehensive Ranking System (CRS) scores. With PGWP now tied to these same priorities, the Canadian immigration system is becoming more integrated and strategic.
What should students do now?
-
Research eligible programs: Prospective students should review the updated list of eligible PGWP fields before applying for a study permit.
-
Seek immigration advice: Working with a regulated immigration consultant can help clarify eligibility and future PR pathways.
-
Focus on in-demand careers: Choosing programs aligned with national labour market shortages increases both work and immigration prospects.
Conclusion
Canada’s post-graduation work permit update signals a shift toward a more targeted and economically aligned immigration system. While it may narrow options for some students, it also rewards those who choose to invest in skills that Canada needs most.
For international students planning to study in Canada in 2025 and beyond, staying informed and strategic is essential. The post-graduation work permit is still available, but only for those who align with Canada’s new priorities.
CDCFIB Recruitment 2025 Begins for Immigration Fire Correctional and Civil Defence Services