Canada’s PGWP Decline Threatens Workforce Amid Global Talent Shifts
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Canada’s labour market is bracing for intensified shortages as post-graduation work permit (PGWP) approvals are projected to fall by at least 30% in 2025, according to new analysis from ApplyBoard. The decline is expected to reduce the number of international graduates entering the workforce, with the steepest cuts seen in sectors already under strain.
Engineering approvals have dropped by 53%, while computing, IT, health and general sciences have seen reductions of around one-third. Stakeholders warn that this will exacerbate chronic labour shortages in healthcare, technology and advanced manufacturing, industries heavily reliant on international talent to fill entry-level roles.
ApplyBoard CEO Meti Basiri described the acceleration of the downturn in May and June 2025, when approvals plummeted 56% year-on-year, as “a clear sign that policy changes are biting in real time”. If the trend persists, PGWP issuance could sink below 130,000 this year, lower than during the pandemic.
The decline follows tighter eligibility rules introduced last year, including new language requirements, restrictions on public-private partnerships and revised field-of-study criteria. While the approval rate remains high at 96%, the sharp drop in applications reflects waning student interest amid uncertainty.
Observers argue that Canada risks losing ground in the global talent race at the very moment the United States is sending mixed signals under Donald Trump’s administration. Washington has hiked H-1B visa fees to $100,000 and floated reforms favouring higher-paid workers, fuelling concerns that Optional Practical Training could also face curbs.
By contrast, the United Kingdom is actively expanding opportunities, pledging to double high-skilled foreign worker visas and offering clearer post-study pathways. Analysts suggest Canada could benefit from international students turning away from the US, but only if policy stability and predictable residency routes are restored.
Valerie Walker of the Business + Higher Education Roundtable stressed the urgency: “Right now, the opportunity is there, but we’re sending mixed signals by tightening PGWP eligibility while talking up talent attraction.”
Without corrective action, experts warn, Canada may struggle to maintain its competitiveness in the global competition for talent.
Source: THE PIE NEWS
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