Canada Plans Major Overhaul of Post-Graduation Work Permit to Align with Labour Market Demands

Maple News reports that Canada’s immigration authorities are considering significant reforms to the Post-Graduation Work Permit (PGWP) program in an effort to better align it with the country’s evolving labour market needs. The changes, currently under discussion between federal and provincial immigration officials, could fundamentally reshape how and to whom these open work permits are granted.

The PGWP allows international graduates of eligible programs at Designated Learning Institutions (DLIs) to gain valuable Canadian work experience. It often serves as a stepping stone toward permanent residency under economic immigration pathways. However, Immigration, Refugees and Citizenship Canada (IRCC) says the current system is due for a rethink. Internal documents—specifically the 2024 IRCC Deputy Minister Transition Binder—indicate that reforms would prioritize permits for students trained in sectors facing labour shortages while limiting access to those from programs with less demand.

The government is targeting a January 2025 rollout, pending ministerial guidance expected in spring 2024. In preparation, IRCC and Employment and Social Development Canada (ESDC) have already mapped educational programs to corresponding occupations using the National Occupation Classification (NOC) system and the Classification of Instructional Programs (CIP). For example, the NOC category for carpenters has been linked to three specific academic programs: construction trades, carpentry, and general woodworking.

The motivation behind these measures stems from both economic and systemic pressures. Since its last major update in 2008, the PGWP program has seen a 214% increase in issued permits between 2018 and 2023. This surge has added strain on Canada’s healthcare, housing, and social services systems—prompting the federal government to introduce new controls over temporary resident levels, including study and work permits.

What makes this transformation especially significant is its potential ripple effect on future immigration pathways. Many international students rely on the PGWP to accumulate the Canadian work experience often required for permanent residency through programs like the Canadian Experience Class and various Provincial Nominee Programs. Limiting PGWP eligibility may therefore indirectly affect thousands of future PR applicants.

This refined approach reflects wider immigration reforms introduced earlier this year, including a temporary cap on new international student permits and the integration of temporary resident caps into Canada’s annual Immigration Levels Plan—an unprecedented move in the country’s policy history.

As these changes are still under consultation, IRCC has circulated internal surveys to gather feedback from education and industry stakeholders. Maple News will continue monitoring this evolving situation and provide timely updates as new information emerges.

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