Canada’s international education sector is undergoing its most significant shift in years, driven by major reforms to the Post-Graduation Work Permit (PGWP) program that are reshaping post-study work opportunities for foreign students. New language requirements, stricter eligibility rules for graduates of public-private partnership (PPP) colleges, and limitations on non-degree programs are narrowing the pathways for students to work in Canada after completing their studies.

A recent ApplyBoard study highlights the immediate effects of these changes. Canada is expected to approve 143,600 PGWPs in 2025, a 30% drop from 2024, with approvals in May and June falling over 56% compared to the previous year. If this trend continues, total approvals for the year could fall below 130,000, the lowest level since the pandemic.

Authorities describe these reforms as part of broader measures to manage student inflows, alongside a national cap on new study permits. However, for students and institutions, the consequences are clear: fewer graduates are gaining work rights in Canada, potentially weakening one of the country’s key advantages in attracting international students. The study notes that the ability to transition from study to work has long been a major reason students choose Canada, and declining PGWP approvals could make Canadian institutions less competitive.

The impact varies across student groups. College students, who represented 65% of approvals in the first half of 2025 with 48,000 permits, saw a 25% year-over-year decline, though ApplyBoard warns this resilience may not last as older cohorts exit. Undergraduate approvals dropped 37% to 6,700, the lowest approval rate at 89%. Master’s students received nearly 12,000 approvals, down 31% from the same period in 2024.

Program-wise, business and management programs remain dominant, accounting for 44% of PGWP approvals in H1 2025, up five points from last year, though even this field experienced a 21% decline. Engineering, computing, IT, and health programs saw sharper decreases, with engineering approvals dropping 53%, raising concerns about Canada’s ability to fill critical skills gaps.

Indian students continue to make up the largest share of PGWP recipients at 59%, despite a 29% decline in approvals. Chinese, Filipino, and Iranian students also faced significant reductions of 30–44%, while Nepalese students saw a 25% increase, achieving a 99% success rate. Nigerian and Ghanaian students experienced modest gains.

Looking ahead, the PGWP contraction is prompting universities and colleges to reassess strategies. ApplyBoard recommends aligning programs more closely with labour market needs, strengthening recruitment ties with India, diversifying outreach to emerging markets, and creating clearer career pathways, especially for undergraduates. The study concludes that how institutions adapt to these changes will be critical in maintaining Canada’s competitiveness in the increasingly complex global education market.