30% Drop in Canada’s PGWP Approvals Raises Concern for Students & Employers
Main Point: PGWP Approvals in Canada Are Down by 30%
- According to new data from ApplyBoard (2025), 30% fewer international graduates will be entering Canada’s workforce this year compared to 2024.
- This drop is most severe in sectors already facing labour shortages, such as:
- Healthcare
- Technology and IT
- Engineering and manufacturing
For example:
- 53% fewer work permits were issued to engineering graduates
- Around one-third fewer to computing, IT, and health science graduates
Why Is This Happening?
The decline is linked to recent government policy changes:
- Stricter PGWP eligibility rules (since late 2024)
- Tighter language requirements
- Restrictions on public-private partnerships (PPP)
- New study field limitations
- Overall study permit caps introduced in January 2024
These changes were meant to control international student numbers but have unintentionally reduced the flow of skilled graduates entering Canada’s job market.
⚠️Impact on Canada
- Canada is losing young, skilled international talent just when it needs them most.
- Labour shortages in healthcare, tech, and manufacturing are expected to get worse.
- Innovation and productivity may decline because entry-level positions are staying vacant.
ApplyBoard’s CEO, MetiBasiri, said the sharp fall in approvals in May–June 2025 (a 56% year-on-year drop) shows that the impact of new policies is immediate, not gradual.
He warned that total PGWP issuances in 2025 could fall below 130,000, even less than during the pandemic years.
Situation in the US
At the same time, the US is becoming less attractive for international students and workers:
- Under Donald Trump’s administration, the H-1B visa fee has jumped to $100,000 (previously only a few thousand dollars).
- New visa rules favourhigh-paid workers, not entry-level or research roles.
- There’s pressure to limit OPT (Optional Practical Training), a key work option for international graduates.
- Student visa time limits and SEVIS terminations have also created uncertainty.
➡️ As a result, US master’s degree applications have dropped by over 60%.
The UK Takes Advantage
While Canada and the US are tightening policies, the UK is positioning itself as a more welcoming destination:
- UK government promises to expand post-study work opportunities.
- Chancellor Rachel Reeves announced plans to double high-skilled foreign worker visas to 18,000, including international graduates and entrepreneurs.
- UK surveys show it is currently the most appealing study destination worldwide.
💬Expert Opinions
- Valerie Walker (Business + Higher Education Roundtable):
Canada is sending “mixed signals” promoting talent attraction but restricting PGWP.
She calls for stable, long-term policies that align with workforce needs and support graduates with clear PR pathways, faster processing, and better housing support. - MetiBasiri (ApplyBoard):
Acknowledges the government’s intent to manage student inflows but says clarity and balance are needed so Canada doesn’t lose ground globally.
Key Takeaways
Country | Current Trend | Policy Direction | Impact on International Students |
Canada | PGWP approvals down 30% | Tightened rules & study caps | Fewer job opportunities post-study |
USA | Policy instability | H-1B fee increase, OPT risk | Sharp drop in student interest |
UK | Increasing interest | Expanding work visa routes | More attractive destination |
In Short
Canada’s stricter work permit policies are shrinking its talent pipeline just as the US faces turmoil under Trump giving the UK a golden opportunity to attract skilled international graduates who are turning away from North America.
📞For guidance on study options, PGWP updates, and alternative destinations like the UK , contact WAC Consultants today!
📩 Email: info@wacconsultants.com
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