Upcoming Changes to Canada’s PGWP: Aligning Education with Labor Market Needs

Canada’s immigration system proposes significant changes to the Post Graduation Work Permit (PGWP) eligibility criteria. Federal and provincial immigration officials are currently discussing these changes, which aim to align the issuance of PGWPs with labor market needs. The PGWP is an open work permit available to international students who have completed an eligible program of study at a Designated Learning Institution (DLI).

Aligning PGWP with Labor Market Needs

According to notes from the IRCC Deputy Minister Transition Binder 2024, the proposed changes will facilitate access to work permits for students entering occupations with labor shortages, while reducing access for graduates from other programs. The Minister will provide advice on this issue in the spring of 2024, with the goal of implementing changes by January 2025.

Stakeholder Feedback and Implementation

An internal survey document recently sent to relevant stakeholders by Immigration, Refugees, and Citizenship Canada (IRCC) reveals some methods that will be used to align educational programs with PGWP availability. Both IRCC and Employment and Social Development Canada (ESDC) have mapped job titles to programs of study. This mapping aims to better understand which educational programs provide international students with relevant skills and experience for in-demand sectors of the Canadian economy.

Synchronizing NOC and CIP Systems

To implement these changes, the National Occupation Classification (NOC) system, which categorizes occupations in Canada, will be synchronized with the Classification of Instructional Programs (CIP) system, which classifies educational programs by field of study. For example, the "carpenter" NOC is mapped to three programs of study: construction trades, carpentry, and woodworking/general.

Why Is IRCC Pursuing These Changes?

The goal of re-aligning labor market needs is to facilitate access to work permits for students entering occupations in shortage while reducing access for graduates from other programs. The PGWP program, last updated in 2008, has seen a 214% increase in work permits issued between 2018 and 2023. These changes also align with recent IRCC announcements regarding temporary residence levels, including an international student cap and the inclusion of temporary resident levels in the annual Immigration Levels Plan.

Immigration Implications

Gaining Canadian work experience through the PGWP is crucial for international graduates to build eligibility for many permanent residence (PR) programs. Federal and provincial economic PR programs often require at least a year of relevant work experience. The proposed changes to the PGWP program could impact the eligibility of international students already studying in Canada, affecting their pathways to permanent residency.