Now, foreign students, including Indians, will need to focus on specific fields of study to qualify for Canada’s post-graduation work permit (PGWP). On October 4, Immigration, Refugees and Citizenship Canada (IRCC) laid out details for these new rules.
PGWP is a work permit that allows graduates of certain Canadian post-secondary institutions to work in Canada after they graduate.
What's changing for foreign students?
The new regulations, set to take effect from November 1, 2024, mean that students who apply for or already hold a study permit before this date will still be eligible for a PGWP under the existing rules. However, those applying on or after this date will be subject to stricter requirements, including a specific field of study to be eligible for the PGWP.
Graduates from degree programmes offered by universities are exempt from these new restrictions. They will continue to qualify for PGWPs of up to three years without needing to meet any field-specific criteria.
New field of study requirements
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IRCC has released a list of 966 eligible academic programmes, all falling under five broad categories: agriculture and agri-food, healthcare, science, technology, engineering and mathematics (STEM), skilled trades, and transportation. According to the updated guidelines, only students graduating from these specified areas of study at the college level will be eligible for the work permit.
Karen Dancy, director of recruitment and international at Olds College, expressed her concerns in a LinkedIn post. "Notably absent on the list is hospitality," she said. "This will be catastrophic for local communities, including rural and remote areas, that rely on our college-educated international learners."
Concerns from education sector leaders
The new rules have sparked strong objections from within the education sector. Marketa Evans, the president and CEO of Colleges Ontario, voiced her dissatisfaction in an open letter to IRCC Minister Marc Miller on September 27. "We are very concerned about the lack of consultation with provinces and the use of national labour market information to inform what local employers need," she wrote. Evans called on the federal government to engage in discussions with the provinces to align the new policy with regional employment needs.
This sentiment was echoed by Pari Johnston, president & CEO of Colleges and Institutes Canada. ICEF Monitor, a market intelligence resource, quoted he saying that the new rules unfairly target public colleges by demanding they align their programmes with national labour market needs, which may not reflect local demands. "Ottawa’s decision to align programmes with national needs creates a fundamental disconnect between the pressing needs of local labour markets and the essential contributions of skilled international graduates," Johnston said, as reported by ICEF Monitor.
The exact criteria used to compile the list of eligible programmes remain unclear. IRCC has indicated that it would be based on long-term labour shortages within the Canadian economy, similar to those used in the Express Entry category-based selection process. An IRCC spokesperson told ICEF monitor that this policy was developed with input from various stakeholders, including provinces, territories, and other partners.
The Toronto Star reported that 105,030 post-graduation work permits were issued in the first half of 2024, with 64% of them going to international graduates from colleges. Business studies graduates represented 42% of these permits, while STEM accounted for 37% and computing and IT for 16%. In contrast, only 1% of permits were awarded to graduates in skilled trades.
This means that a considerable number of international graduates—around 67,000 out of 105,030—who received work permits this year may not qualify under the new rules if they pursued studies outside the designated fields.
Future implications for Canadian colleges
The policy changes announced by IRCC are set to reshape the landscape for Canadian colleges, potentially affecting recruitment strategies and financial stability.
"The recent policy changes announced by Minister Miller mark a pivotal shift for Canada’s International Student Program, drastically reducing what was once a financial lifeline for many institutions," Dr Dennis Johnson, formerly the president of the College of New Caledonia, said in a LinkedIn post.
"The future of the post-secondary education system is at risk, and without coordinated action, both the viability of institutions and opportunities for future learners are in question," Dr Johnson said.