Canada’s international education landscape has been defined by rapid and significant change over the past two years. For students, one of the most impactful shifts has been to their ability to work in Canada after graduation. Policy changes affecting Canada’s Post-Graduation Work Permit (PGWP) program include the introduction of new language proficiency standards, restrictions on PGWP eligibility for graduates of public-private partnership (PPP) colleges, and new field of study requirements for non-degree programs.
These updates to the PGWP program were part of a broader government strategy to manage student inflows, which also included a national cap on new study permits. Together, these moves signal a more targeted approach to international education. Now, with fewer international students entering the country and a narrower path to PGWP eligibility for many who do, the full effect of these changes is coming into view.
Due to the culmination of these policy changes, Canada is on track to approve 30% fewer post-graduation work permits in 2025 compared to 2024 levels. Today, we’ll break down which student populations, study levels, and fields of study have been most impacted by this PGWP downturn.
Despite the overall downturn, Indian students continued to dominate PGWP approvals, accounting for 59% of all permits issued in both H1 2024 and H1 2025. With such a large share, India plays a central role in shaping the broader PGWP trends. For example, the 29% drop in approval volume for Indian students closely aligned with the overall year-over-year decline across all applicants.
By contrast, most other large source markets recorded similar or steeper declines in both approval volume and grant rates. Chinese students, for example, saw a 30% decline in approvals and a five-point decrease in their PGWP approval rate. Filipino and Iranian students also saw significant drops in volume—down 41% and 44%, respectively—despite maintaining high success rates.
Bucking this widespread trend, three student populations posted positive growth in PGWP approvals. Students from Nepal were the standout, with approvals jumping 25% year-over-year while maintaining a stellar 99% grant rate. Nigerian and Ghanaian students also saw higher approval totals, up 4% and 8% respectively, despite lower approval rates.
These student population trends paint a picture of an evolving global landscape. While India remains a steadfast anchor of Canada’s PGWP system, the simultaneous growth from markets like Nepal, Nigeria, and Ghana is a clear indicator of where future opportunities in student mobility lie. Institutions that continue to strengthen their presence in India while also expanding outreach and support in high-potential markets will be better positioned to respond to shifting global demand.
What Comes Next for PGWP?
The PGWP contraction in H1 2025 marks a significant turning point in Canada’s post-study sector. For years, the program served as a key bridge between international education and successful careers in Canada, reinforcing Canada’s appeal in a competitive global market. But as eligibility narrows and fewer students gain access to post-graduation work opportunities, institutions and students alike are adjusting to a new reality.
This transition is already reshaping application trends, student decision-making, and institutional recruitment strategies. Fields of study and source markets that were once highly active may see further declines in future cohorts as recent policy changes ripple through the system.
In this evolving environment, institutional resilience will depend on strategic alignment, such as evaluating how program portfolios align with both student demand and Canada’s labour market needs. Similarly, understanding the dynamics between established and emerging student populations will be essential for building a diverse and sustainable recruitment corridor for the years ahead. Ultimately, the institutions that thrive will be those that best help their students navigate this new complexity with clarity and purpose.
