Canada to Cut PGWP Approvals by 30% in 2025: Visa Changes

Canada’s international education sector is undergoing significant changes, and these shifts in the Post-Graduation Work Permit (PGWP) program are particularly noteworthy for international students considering work opportunities after their studies. The new regulations include updated language proficiency requirements and stricter eligibility criteria for graduates from certain public-private partnership colleges and non-degree programs, which may limit pathways to employment in Canada.

A recent study from ApplyBoard reveals that these reforms are already influencing the landscape. By 2025, Canada is expected to issue just 143,600 PGWPs, which is a 30% decrease from 2024. The numbers are particularly stark, with approvals in May and June plummeting more than 56% compared to the previous year. If this trend continues, annual approvals could drop below 130,000—the lowest level since the pandemic.

Officials indicate that these changes are part of a broader strategy to manage student intake and tighten study permit allocations. However, for students and educational institutions, this means fewer graduates may secure work rights in Canada, diminishing one of the key benefits that attract many to study here.

As highlighted in the report, “The ability to transition from study to work has long been a critical factor for students choosing Canada.” The reduction in PGWP approvals may make Canadian institutions less appealing to prospective students.

Who Is Most Affected?

• Colleges: Students at colleges accounted for 65% of PGWP approvals in the first half of 2025, totalling around 48,000 permits. Although their approvals saw a 25% decline year-on-year, ApplyBoard warns that this trend may not continue as older cohorts retire.

• Undergraduates: Only 6,700 approvals were granted to undergraduate students in the first half of 2025, a 37% drop from the previous year, with the approval rate hitting a low of 89%—the lowest among all education levels.

• Master’s students: Nearly 12,000 PGWP approvals were granted, reflecting a 31% decrease compared to the same period in 2024.

Field of Study Shifts

Business and management programs now account for a significant 44% of PGWP approvals in early 2025, despite a 21% drop in approvals for these fields. Other areas like engineering, computing, IT, and health have experienced even sharper declines—engineering alone saw a 53% drop. This raises concerns about Canada’s ability to fill critical skills gaps in vital sectors.

Student Populations

Indian students continue to dominate, making up 59% of PGWP approvals, although their numbers have decreased by 29%. In contrast, Chinese, Filipino, and Iranian student populations experienced declines ranging from 30% to 44%. Interestingly, Nepalese students have seen a surge of 25% in approvals, boasting a remarkable 99% success rate, while there were modest gains for students from Nigeria and Ghana.

The Road Ahead

As the PGWP landscape shifts, universities and colleges are being urged to adapt. The ApplyBoard study recommends that institutions align their programs with labour market demands, strengthen connections with Indian students, and diversify recruitment efforts to include emerging markets. Offering clearer career pathways—especially for undergraduate students—will also be crucial.

In summary, the downturn in PGWP approvals is certainly a pivotal moment. How educational institutions respond will significantly influence their future competitiveness in an increasingly complex global education market.

If you’re considering studying in Canada and looking for job opportunities afterward, don’t forget to check out our website, VisaJobsCanada.com. Every job listing includes visa support, making it easier for international applicants like you to find work in Canada.