Canada’s international education landscape has been defined by rapid and significant change over the past two years. For students, one of the most impactful shifts has been to their ability to work in Canada after graduation. Policy changes affecting Canada’s Post-Graduation Work Permit (PGWP) program include the introduction of new language proficiency standards, restrictions on PGWP eligibility for graduates of public-private partnership (PPP) colleges, and new field of study requirements for non-degree programs.
These updates to the PGWP program were part of a broader government strategy to manage student inflows, which also included a national cap on new study permits. Together, these moves signal a more targeted approach to international education. Now, with fewer international students entering the country and a narrower path to PGWP eligibility for many who do, the full effect of these changes is coming into view.
Due to the culmination of these policy changes, Canada is on track to approve 30% fewer post-graduation work permits in 2025 compared to 2024 levels.1 Today, we’ll break down which student populations, study levels, and fields of study have been most impacted by this PGWP downturn.
Key Insights at a Glance
- ApplyBoard projects that Canada will approve 143,600 PGWPs in 2025, 30% less than in 2024.
- Downward trends accelerated in May and June, with both months seeing at least 56% fewer PGWP approvals year-over-year. If this trend continued throughout the rest of the summer, PGWP approvals could fall to a post-pandemic low.
- College students accounted for 65% of PGWP approvals in January–June (H1) 2025.
- 44% of PGWP approvals in H1 2025 went to business and management graduates, up five percentage points over H1 2024.
Number of PGWP Approvals Could Reach Post-Pandemic Low in 2025
Since the pandemic, January through June (H1) has often accounted for roughly half of PGWP approvals in a given year.2 Based on H1 2025 trends, we’re currently forecasting that Canada will approve about 143,600 PGWPs for the full 2025 calendar year:
Canadian immigration officials approved nearly 75,000 PGWP applications during H1 2025, representing a 29% decline over H1 2024. However, this downward trend accelerated in both May and June, with approvals falling by more than 56% year-over-year in both months. If this accelerated downturn continues throughout the rest of the summer and extends into the early autumn months, PGWP approvals for the full-year could end up below 130,000, the lowest total since the pandemic.
For institutions, a sharp reduction in PGWP approvals undercuts one of Canada’s most important recruitment advantages. The ability to transition from study to work has long been a defining factor for students choosing Canada over other destinations. As fewer students gain access to post-graduation work opportunities, institutions may find it harder to attract applicants. This could translate into increased competition between institutions for a smaller pool of eligible students.
The broader Canadian economy also stands to feel the effects. PGWP holders have been a vital source of skilled talent in sectors facing chronic shortages, from healthcare to technology. A contraction in approvals means fewer international graduates entering the workforce, potentially destabilizing industries facing skills shortages that have come to depend on new graduates who fuel innovation and growth.
In H1 2025, 96% of PGWP applicants were approved, two percentage points lower than in H1 2024.
Colleges Account for Nearly Two in Every Three PGWP Approvals in 2025
Since the pandemic, at least 58% of PGWP approvals have gone to college students every year. In fact, this proportion has been rising yearly since 2022:
In H1 2025, over 48,000 college students were approved for a PGWP, accounting for 65% of all PGWP approvals during this time. College-level approvals had the slowest year-over-year decline (-25%), and their 97% approval rate was tied for the highest among study levels. However, this apparent resilience is likely temporary. Many of these approvals reflect students who began their studies before the new PGWP restrictions were introduced. As that cohort graduates out of the system, a steeper decline in college-level approvals is likely, especially as the new policies begin to influence student demand in upcoming intakes.
In contrast to the temporary resilience seen at the college level, the downward trend for undergraduate PGWP approvals was more pronounced. In H1 2025, nearly 6,700 PGWPs were approved for undergraduate students. This represents a 37% year-over-year decline, and brought this cohort’s share of total approvals down to 9%. This fall in volume was coupled with a lower success rate, with the approval rate for undergraduates dropping six percentage points to 89%, the lowest of any study level.
This poses a unique challenge for Canadian universities. In an environment where shorter, more vocational college programs are viewed as a faster and more certain return on investment, universities must more clearly articulate the long-term career advantages of a bachelor’s degree. Embedding practical work experiences, such as co-op programs and internships, could be crucial for demonstrating clear career pathways and ensuring undergraduate degrees remain an attractive and viable option for prospective international students.
Nearly 12,000 master’s students were approved for a PGWP in H1 2025, 31% lower than in H1 2024.
Business Students See Larger Proportion of PGWP Approvals in 2025
The overall downturn in PGWP approvals hasn’t affected all fields of study equally. Instead, it has accelerated a significant shift in market share across disciplines:
Business and management programs have emerged as the primary beneficiary of the PGWP distribution shift. In H1 2025, graduates from these programs accounted for 44% of all PGWP approvals, up five percentage points year-over-year. However, the nearly 33,000 PGWP approvals in this field still represented a 21% decline over H1 2024. This means the field’s expanded proportion of PGWP approvals is a direct result of steeper declines across other disciplines.
Nowhere are those steeper declines more evident than in key STEM and health fields. PGWP approvals for engineering graduates fell by 53% year-over-year, bringing the field’s share down to just 6%, down four percentage points over H1 2021. Computing and IT and health and general sciences also faced significant declines, with approvals for both down 31% year-over-year.
These shifts carry important implications for Canada’s talent pipeline. The steep drop in PGWP approvals among graduates in engineering, computing, and health fields means fewer internationally educated workers entering sectors already facing persistent labour shortages. While business and management programs now make up a larger share of approvals, the reduced flow of graduates into STEM and health-related roles could exacerbate existing skills gaps and challenge workforce planning in critical industries.
With many business programs (particularly at the college level) no longer PGWP eligible, we expect STEM fields of study will account for a larger share of PGWP approvals over the next couple of years.
PGWP Approvals, Approval Rate Down For Majority of Student Populations
Of the 20 largest international student populations by PGWP application volume, 17 saw a decline in PGWP approvals in H1 2025:
Despite the overall downturn, Indian students continued to dominate PGWP approvals, accounting for 59% of all permits issued in both H1 2024 and H1 2025. With such a large share, India plays a central role in shaping the broader PGWP trends. For example, the 29% drop in approval volume for Indian students closely aligned with the overall year-over-year decline across all applicants.
By contrast, most other large source markets recorded similar or steeper declines in both approval volume and grant rates. Chinese students, for example, saw a 30% decline in approvals and a five-point decrease in their PGWP approval rate. Filipino and Iranian students also saw significant drops in volume—down 41% and 44%, respectively—despite maintaining high success rates.
Bucking this widespread trend, three student populations posted positive growth in PGWP approvals. Students from Nepal were the standout, with approvals jumping 25% year-over-year while maintaining a stellar 99% grant rate. Nigerian and Ghanaian students also saw higher approval totals, up 4% and 8% respectively, despite lower approval rates.
These student population trends paint a picture of an evolving global landscape. While India remains a steadfast anchor of Canada’s PGWP system, the simultaneous growth from markets like Nepal, Nigeria, and Ghana is a clear indicator of where future opportunities in student mobility lie. Institutions that continue to strengthen their presence in India while also expanding outreach and support in high-potential markets will be better positioned to respond to shifting global demand.
What Comes Next for PGWP?
The PGWP contraction in H1 2025 marks a significant turning point in Canada’s post-study sector. For years, the program served as a key bridge between international education and successful careers in Canada, reinforcing Canada’s appeal in a competitive global market. But as eligibility narrows and fewer students gain access to post-graduation work opportunities, institutions and students alike are adjusting to a new reality.
This transition is already reshaping application trends, student decision-making, and institutional recruitment strategies. Fields of study and source markets that were once highly active may see further declines in future cohorts as recent policy changes ripple through the system.
In this evolving environment, institutional resilience will depend on strategic alignment, such as evaluating how program portfolios align with both student demand and Canada’s labour market needs. Similarly, understanding the dynamics between established and emerging student populations will be essential for building a diverse and sustainable recruitment corridor for the years ahead. Ultimately, the institutions that thrive will be those that best help their students navigate this new complexity with clarity and purpose.
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FOOTNOTES:
1. All data courtesy of IRCC.
2. Calendar year 2022 was an outlier to this trend, where H1 accounted for only 34% of PGWP approvals for the full year. This was likely partially due to COVID-19 delaying students’ travel abroad plans until late 2020; fewer students beginning programs during the half of 2020 would mean there were fewer eligible students to apply for a PGWP two years later.
