Canada’s international education sector is undergoing one of its sharpest resets in years as sweeping changes to the Post-Graduation Work Permit (PGWP) program reshape opportunities for foreign students.
According to a new study by ApplyBoard, Canada is projected to approve about 143,600 PGWPs in 2025 — 30% fewer than in 2024. If current trends continue, approvals could fall below 130,000 for the full year, the lowest level since the pandemic.
The reforms include new language proficiency requirements, tighter rules for graduates of public-private partnership (PPP) colleges, and restrictions on non-degree programs. Together, these changes are narrowing pathways to work in Canada after study, reducing what has long been a key recruitment advantage for Canadian institutions.
“Ability to transition from study to work has long been a defining factor for students choosing Canada,” the report noted, warning that declining PGWP approvals may make Canada less attractive in a competitive global market.
Colleges accounted for 65% of approvals in the first half of 2025, with nearly 48,000 permits issued, though analysts caution this resilience may not last. Undergraduate approvals fell 37% year-over-year, while master’s students saw a 31% decline.
By field of study, business and management dominated with 44% of approvals, though engineering, computing, IT, and health programs recorded the steepest declines, with engineering down 53%. Analysts warn the drop could undermine Canada’s efforts to fill critical skills gaps.
Indian students, who remain the largest cohort at 59% of approvals, experienced a 29% decline. Students from China, the Philippines, and Iran saw drops of 30–44%. In contrast, Nepalese students recorded a 25% increase, with nearly all applications approved.
Experts say institutions must now align programs with labour market needs, strengthen ties with India while diversifying into emerging markets, and create clearer pathways for international graduates.
“The PGWP downturn marks a turning point,” ApplyBoard said. “How institutions respond will define Canada’s ability to compete in an increasingly complex global education landscape.”
