Major Changes to Canada’s Post-Graduation and Spousal Open Work Permit Programs

Recent changes have been introduced to Canada’s Post-Graduation Work Permit (PGWP) program and spousal open work permits, impacting international students and their spouses. In a nutshell, the PGWP and spousal open work permit regimes are about to become greatly restricted. Here’s what you need to know:

Changes to the Post-Graduation Work Permit (PGWP) Program

The PGWP program, which provides international students with the opportunity to gain Canadian work experience for a maximum of 3-years after completing their studies, has undergone the following changes:

• New Language Proficiency Requirements: Starting November 1, 2024, all applicants for a PGWP will need to meet language proficiency standards. University graduates must achieve a Canadian Language Benchmark (CLB) level 7 in either French or English, while college graduates will be required to reach CLB level 5. This requirement aims to help graduates integrate more effectively into the Canadian workforce and improve their prospects for permanent residency.
• Field-Specific Eligibility: Graduates from public college programs will continue to qualify for PGWPs of up to three years, provided their field of study is linked to occupations facing long-term shortages in Canada. This is a significant change, because now PGWPs won’t be available to all students of Designated Learning Institutions. If access to a PGWP depends on the government’s assessment of sectors with long-term labour shortages, changes in the economy will affect access as the list changes, meaning future students to Canada won’t have any certainty they will be able to obtain a PGWP upon graduation. I suspect this new policy development will face fierce resistance from colleges and universities. International student numbers in Canada will continue to plunge as a result of this new policy.
• Study Permit Caps: The number of new study permits will be reduced starting in 2025, with a 10% decrease from the 2024 target. This brings the total down to approximately 437,000 new study permits issued for 2025. Master’s and doctoral students will be included in this cap, with around 12% of spaces reserved for them, acknowledging the critical role they play in certain industries.

Updates to the Spousal Open Work Permit Program

The eligibility for spousal open work permits has also been revised, with new restrictions set to take effect later this year:

• Spouses of Master’s Degree Students: Open work permits for spouses of master’s degree students will now be limited to those whose academic programs are at least 16 months long. This shift narrows the eligibility for spousal work permits to longer-term educational commitments.
• Spouses of Foreign Workers: Spouses of foreign workers will only be eligible for work permits if the worker is employed in a management or professional occupation, or in sectors experiencing labour shortages. This change is also monumental, as many of the principal or primary workers coming to Canada won’t agree to move here if their spouses cannot contribute to the household income through their own jobs, not to mention career aspirations and the need to occupy oneself throughout the day. In our view, this policy is not well-thought out and will create a chilling effect on many skilled workers that Canadian companies require.

Summary of Key Dates

• November 1, 2024: New language requirements for PGWP applicants come into effect.
• Late 2024: Changes to the spousal open work permit program, including restrictions on eligibility based on occupation or program length.
• 2025: Study permit intake reductions begin, affecting the number of international students allowed into Canada, particularly at the master’s and doctoral levels.

These changes will impact individuals applying for work permits as well as employers looking to hire foreign workers, and in our view they are not good changes. They feel rushed and designed for political purposes, rather than introduced for sound policy reasons.