On June 25, 2025, the federal government announced changes in post-graduation work permit (PGWP) eligibility. These changes are a part of broader reform measures introduced by the federal government in November 2024 affecting international students, which focused on reducing the issuance of study permits and introducing new language proficiency requirements for PGWP applicants.
Yesterday, the Government of Canada released a revised list of eligible fields of study which qualify international students for PGWP, a form of open work permit allowing international students who have completed an eligible program of study at a qualifying Canadian learning institution to live and work in Canada for up to three years.
Changing Canadian labour market needs
The new changes exclusively affect students in non-degree programs (programs other than bachelor's, master's or doctoral degrees). To be eligible for a PGWP, international students in non-degree programs must complete a program in an eligible field of study linked to jobs facing long-term labour shortages. Yesterday's modifications to the list of eligible fields of study reflect this, removing 178 fields of study no longer linked to positions experiencing long-term labour shortages, including positions in agriculture and agri-food, transportation and skilled trades.
However, opportunities for international students completing programs in fields of study in "key sectors" such as health care, social services, education and trades may improve after yesterday's announcement, which added 119 new fields to the list of eligible majors in areas experiencing long-term workforce deficits, including positions in teaching, dentistry, veterinary medicine and construction management.
Status of applications going forward
Changes in program eligibility will only apply to those who apply for a PGWP on or after June 25, 2025. Those who applied before that date will remain eligible for a PGWP, even if their field of study has since been removed from the list of eligible fields. However, students applying for a PGWP on or after June 25, 2025, will only qualify for a PGWP if their program falls within the updated list of eligible fields of study.
Takeaways for employers
Employers may feel the effects of these changes in the coming months. Employers in industries connected to the now ineligible fields should expect a reduction in the availability of new graduates in the labour market for the next few years, creating challenges and heightening risks of renewed labour shortages. This may require employers to pivot their recruitment approaches and reevaluate their workforce needs. However, employers offering positions corresponding to those 119 added fields of study may see their talent pools increase.
The state of the Canadian immigration system is dynamic and continues to be flux, with ongoing changes expected. Employers should stay informed of these developments to assess how these updates will affect their businesses and hiring and retention strategies.
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