Canada Set to Issue 30% Fewer Post-Graduation Work Permits in 2025

The fact that many international students can study in Canada and later work under the Post-Graduation Work Permit Program (PGWP) has been one of the main cohesive factors for most students. However, significant policy changes in Canada are causing the environment to evolve fast and future students and existing applicants should keep up.

In 2025, Canada is projected to approve approximately 30% fewer PGWPs than in 2024, according to industry forecasts. This anticipated reduction is based on policy changes and tighter eligibility criteria, but the exact number of approvals remains subject to IRCC decisions and updates. Here is the breakdown of the what, why, and how of what is going on and how to navigate this emerging space.

What’s Driving The Drop?

The decline in approvals of the PGWP in 2025 is due to several policy changes, which are intertwined, by Immigration, Refugees and Citizenship Canada (IRCC):

According to projections from industry experts, approximately 143,600 PGWPs may be approved in 2025, reflecting a significant decline from the previous year, compared to 2024 (which will be down by roughly 30%).

One of the motivating factors: Stricter eligibility standards based on the graduation of a non-degree program applicant, which also includes new field-of-study limitations, was made in the July 4, 2025, notice updating the eligible CIP (Classification of Instructional Program) codes.

Other considerations: New language proficiency levels, greater scrutiny of colleges with private-partnered colleges and public-private joint programs, and broader government policy with the aim of decreasing the proportion of temporary residents in Canada.

Other structural restrictions: A limit on the number of new study permits (to students) (437,000 in 2025) has also been implemented, which will indirectly limit the number of graduates who can access a PGWP.

The combination of those measures indicates a change to a more selective and outcomes-based immigration policy in the case of students and graduates.

Who is Most Affected?

While the rules affect all international students, certain groups are more impacted than others:

Graduates of non-degree programs (including certificates and diplomas) whose application to obtain a study permit is submitted on or after 1 November 2024 now have a requirement to successfully complete a program in an eligible field of study (i.e., a field with long-term labour shortages) to be eligible to receive a PGWP.
Students enrolled in public-private partnership (PPP) institutions or programs, which are under increased scrutiny and may face PGWP eligibility risk.
Graduates in fields that have been removed from the eligible list (178 fields removed) will be impacted if they applied after the cut-off or in the removed fields.

Industry estimates suggest that certain fields may see significant reductions in PGWP approvals. For example, engineering graduates are projected to experience a 53% drop in approvals, while fields like computing/IT and health/general sciences could see reductions of around 30%. However, these numbers are projections and should be verified with up-to-date IRCC data.

What This Means For You As A Prospective Or Current International Student

Given this environment, here are key implications and actions to consider:

Eligibility matters more than ever: It’s no longer enough to simply enrol in a Canadian institution. You should make sure that your program is eligible to receive the PGWP (particularly, non-degree programs), and your application to receive a study permit is within the new requirements with regard to the timing and the choice of programs.
Time is of the essence: When you apply for a study permit on or after 1 November 2024, you will be subject to the new rules on the PGWP (when it comes to non-degree programs) and the reduction in approvals. You might be subject to previous regulations if you applied previously.
Choose your course of study thoughtfully: Since the requirements of the non-degree-program PGWP are based on the appearance of your CIP-code on the list of eligible fields, you need to identify the specifics of the code that your program has and whether it is eligible.
Recalibration of work-after-study expectations could be required: As fewer PGWPs are issued, and competition for such permits is increasing, it could be risky to plan under the assumption of a guaranteed post-study work. You may need contingencies.
Keep in line: Continue full-time enrolment, remain at a prescribed learning institution (DLI), and monitor permits. A lot of rejections are caused by the lack of obedience to simple regulations.

Frequently Asked Questions

Q1. Why is Canada issuing 30 % fewer PGWPs in 2025?

New eligibility criteria (field-of-study, language, institutional scrutiny), tighter controls on student inflows, and government targets to reduce temporary resident numbers, all culminate in fewer graduates meeting the criteria.

Q2. Does the reduction mean I cannot get a PGWP at all?

Not at all; many students still will qualify. But you must ensure you meet the updated eligibility criteria (program level & field, institution type, language, where applicable) and apply accordingly.

Q3. Are degree programs (e.g., bachelor’s, master’s) less affected?

Yes, generally, programs at the degree level have fewer additional restrictions compared to non-degree programs in terms of field-of-study eligibility. However, you must still monitor institutional eligibility.

Q4. What if I complete a non-degree program that is not on the eligible CIP list?

Under the new rules, you may not be eligible for PGWP if your study permit application was submitted on or after 1 November 2024. Choosing such a program could limit your post-study work options.

Q5. Can I still plan to stay and work in Canada after graduation with a PGWP?

Yes, but you should treat it as a conditional outcome rather than a guarantee. Given the reduced approvals, you should build a comprehensive plan (including alternate pathways like provincial nomination, master’s programs, etc.).

Strategic Recommendations

Check your institution and program prior to application. Ensure that the DLI is recognized or that the program meets the present-day rules to be eligible for the PGWP.
Ensure that programs that are tied to demand in the labour market are given a priority, and in most cases, they relate to the areas that are still eligible under the PGWP and also to upcoming immigration streams.
Seek early counsel. Plan your study-to-work strategy, important dates, and backup plans with an immigration law expert (such as Kurzfeld Law Firm).
Be flexible and knowledgeable. Keep watching new IRCC updates and be prepared to change the school/program or even the destination that you have selected.
Consider a broader pathway to permanent residence (PR). While the PGWP is a key stepping stone, it should be part of a broader immigration plan, including work experience, provincial nomination, and permanent resident eligibility.

Why This Matters

For many international students from India, China, Nigeria, the Philippines and beyond, Canada has been a compelling choice, partly because of the relatively generous PGWP regime and the possibility of transitioning to work and eventually permanent residence. However, as recent data shows, the pool of eligible PGWPs is shrinking and competition is intensifying.

Fail to adapt to the new reality and you risk selecting a program or institution that limits your future opportunities at a time when you’re already investing in tuition, relocation, living costs and study commitments. Success will increasingly depend on making informed, strategic choices rather than relying on previous assumptions.

Conclusion

At Kurzfeld Law Firm, we understand how much is at stake when you decide to pursue education and work opportunities in Canada. With the expectation of some 30 % fewer PGWPs issued in 2025, it’s crucial to approach your study-and-work-after-study plan with precision and professional guidance.

Whether you’re choosing your program, assessing your institutional options, or mapping your post-graduation strategy, we’re here to help. Our team specializes in international student immigration, study-permit planning, PGWP eligibility checks and transitional work-to-immigration pathways.

Reach out to Kurzfeld Law Firm today and let us help you build a roadmap that reflects the new reality, safeguards your goals and maximizes your chances of success in Canada.

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