Canada Work Permit Alert: Students dreaming of a job in Canada may face a shattered dream, with bad news regarding work permits!

Canada Tightens PGWP Rules: Post-Graduation Work Permit Approvals Could Drop 30% in 2025

Canada Work Permit Alert: Stricter Rules May Slash Post-Graduation Work Permit Approvals by 30%

For many international students, Canada is a dream destination for higher education and career growth. A key reason is the Post-Graduation Work Permit (PGWP) program, which allows graduates to work in Canada for eight months to three years after completing their studies. However, new data and policy changes suggest that 2025 could bring a major setback for students hoping to stay and work in the country.

Approval Rates Set to Plunge

A recent study by ApplyBoard reveals that PGWP approvals in 2025 may fall by nearly 30% compared with 2024. The report estimates that the number of permits granted this year could drop to around 130,000, marking the lowest level since the start of the COVID-19 pandemic.

The decline was already visible earlier this year: May and June 2025 approvals were down more than 56% year over year. If this trend continues, Canada could issue approximately 143,600 fewer permits than last year—a serious blow for graduates counting on Canadian work experience.

Stricter Eligibility Requirements

Several government policy changes are driving this sharp drop:

• Tougher Language Standards: Applicants must now demonstrate stronger English or French proficiency to qualify.

• Limits on Certain Institutions: Graduates from public-private partnership colleges are no longer automatically eligible for PGWP.

• Restrictions on Non-Degree Programs: Students completing non-degree or short-term programs face new hurdles.

• Reduced Study Permits: Canada has also lowered the number of new study permits to manage the overall international student population.

These measures aim to control the rapid growth of foreign student enrollment, but they also make it harder for legitimate graduates to stay and work in the country.

Who Is Most Affected?

Data from the first half of 2025 shows a steep decline across different education levels:

• College Graduates: Received 65% of total approvals—about 48,000 permits—but still saw a 25% year-on-year drop.

• Undergraduates: The hardest hit, with approvals plunging 37%, leaving just 6,700 permits and an 89% acceptance rate.

• Master’s Graduates: Around 12,000 permits were issued, a 31% decrease compared with the first half of 2024.

Field of study also matters. Business and management programs remained the most popular, accounting for 44% of approved permits, but even they experienced a 21% decline in approval rates. Graduates in engineering, computing, IT, and healthcare have likewise faced growing challenges in securing PGWPs.

What It Means for International Students

For students planning to study in Canada, these changes underscore the need for careful preparation. Strong language skills, enrollment in eligible public institutions, and selection of degree-level programs are now more critical than ever. Prospective applicants should also monitor updates from Immigration, Refugees and Citizenship Canada (IRCC) to stay informed about evolving requirements.

Bottom Line

Canada remains an attractive destination for world-class education and professional opportunities. But with tighter PGWP rules and a projected 30% drop in approvals, international students must plan strategically to secure post-graduation work opportunities. Choosing the right program, maintaining excellent academic performance, and meeting enhanced language requirements could make all the difference in achieving the Canadian career dream.