Studying in Canada? New PGWP Rules Prioritize Long-Term Labour Needs

What Has Changed for International Students?

On June 25, 2025, Immigration, Refugees and Citizenship Canada (IRCC) released an important update that affects the eligibility criteria for post-graduation work permits (PGWPs). This policy revision is part of a broader realignment of the International Student Program with Canada’s economic priorities, specifically the 2025 Express Entry occupations list.

Under the updated rules, international students pursuing non-degree programs—that is, programs other than bachelor’s, master’s, or doctoral degrees - must ensure their field of study aligns with Canada’s long-term labour market needs to qualify for a PGWP. This shift targets better integration of international graduates into areas where there are sustained worker shortages.

Why the Focus on Labour Market Needs?

The Canadian government has long used immigration as a tool to address workforce gaps, especially in vital sectors. By updating the PGWP eligibility list to reflect current labour shortages, the policy aims to match international student pathways with fields that have real, consistent demand in Canada.

These priorities are defined by the Express Entry system, which identifies sectors where skilled labour is critically needed. This year’s update includes a strong emphasis on healthcare, skilled trades, social services, and education—fields essential for national development and long-term economic resilience.

How the 2025 Update Impacts Eligibility

This update brings significant changes:

• 119 new fields of study were added to the PGWP eligibility list. These fields primarily relate to key areas like health care, education, trades, and social services—sectors currently facing worker shortages.
• 178 fields of study were removed from the list. These programs are no longer aligned with occupations considered in long-term demand by the 2025 Express Entry priorities.
• The total number of eligible fields now stands at 920, all classified according to the Classification of Instructional Programs (CIP) system.

Students currently considering non-degree programs must now ensure that their intended field of study is part of this eligible list if they hope to secure a PGWP after graduation.

Who Is Affected?

These new eligibility rules apply to international students who applied for their study permits on or after November 1, 2024. For those who submitted their applications before June 25, 2025, there is some flexibility: they remain eligible for a PGWP if their field of study was on the approved list at the time of their study permit application, even if that field has since been removed.

This transitional clause ensures fairness for students who made their education decisions based on the previous list, avoiding retrospective penalties.

Implications for Future Applicants

For prospective students, particularly those exploring college diplomas, certificates, or other non-degree qualifications, this change adds a new layer of due diligence. It is no longer enough to be accepted into a designated learning institution (DLI); your program must now also align with current national workforce strategies.

Before applying, it is critical to:

• Review the most recent list of PGWP-eligible fields of study, available on the government’s official website.
• Understand how your chosen field connects with Canada’s in-demand occupations, especially those flagged under Express Entry.
• Seek guidance from a licensed immigration professional who can interpret how these changes affect your specific plans.

What This Means for Employers and Canada’s Economy

Employers in key sectors stand to benefit from this policy shift. It directs international talent toward roles that are increasingly difficult to fill through domestic labour pools. Graduates trained in Canada are often job-ready and familiar with workplace culture, making them ideal candidates to ease staffing gaps in healthcare, skilled trades, early childhood education, and elder care.

Over time, this approach is expected to reduce labour shortages, improve service delivery in essential industries, and enhance the efficiency of Canada’s broader immigration pathways.

How to Plan Your Education Pathway Wisely

Navigating study and work opportunities in Canada is becoming more strategic. While the country remains a top destination for international education, the road to gaining post-study work experience is now more conditional.

Students must align their educational goals with long-term employability in Canada. Making informed decisions at the outset can improve not just the odds of PGWP approval, but also future permanent residency eligibility through economic immigration streams.

Need Help Understanding Your Options?

Loop Immigration can help students and their families navigate this evolving landscape. Whether you’re assessing your field of study, evaluating your eligibility, or planning long-term migration goals, having expert advice can make the process clearer and more aligned with your aspirations.