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The significant decline in approvals has been attributed to some of the new rules implemented by the federal government to limit access to work authorizations for international graduates in the past year, as part of the measures to reduce the temporary resident population in Canada.

Those changes include the introduction of new language proficiency standards, restrictions on PGWP eligibility for graduates of joint public-private college partnership programs, and new field-of-study requirements for non-degree programs.

“Canada’s international education landscape has been defined by rapid and significant change over the past two years,” said ApplyBoard.Ìý“A sharp reduction in PGWP approvals undercuts one of Canada’s most important recruitment advantages.”

In the first six months of 2025, the Immigration Department approved about 75,000 PGWP applications, which represented a 29 per cent decline over the same period in 2024. However, the decrease was particularly steep in both May and June, with approvals falling by more than 56 per cent year over year in those two months.

If this accelerated downturn continues for the rest of the year, the report said PGWP approvals for 2025 could end up below 130,000 in the worst-case scenario, which would be the lowest since the pandemic.

Who gets a post-graduate permit?

From January to June, 65 per cent of all PGWPs went to college graduates, up three percentage points from last year. The share of the permits for university undergraduates was at nine per cent, which was the lowest level since 2022, when the group accounted for 17 per cent of the work permits. The proportion of PGWPs that went to postgraduate students was steady, at 17 per cent. (The rest were unspecified.)

ApplyBoard expected the ratio of PGWPs going to college graduates would decline because some of these students were grandfathered under the old regime, and the new rules favour those who study in universities.

“Business and management programs have emerged as the primary beneficiary of the PGWP distribution shift,” said . “The field’s expanded proportion of PGWP approvals is a direct result of steeper declines across other disciplines.”

The first six months of 2025 saw 44 per cent of the work permits go to international graduates in business and management, followed by 15 per cent in computing and IT; 10 per cent in health and general science; nine per cent in arts, social sciences and humanities; six per cent in engineering; and 16 per cent in other disciplines.

The share of PGWPs for those who studied business and management was up five percentage points from last year and was at the highest level in five years. But with many business programs, especially those at the college level no longer eligible for work permit, STEM fields of study are expected to gain a larger share over the next couple of years, said ApplyBoard.

From January to June, 43,803 PGWPs went to graduates from India; followed by China (4,129); Nigeria (3,831); the Philippines (3,418); Nepal (2,280); Bangladesh (1,110); France (1,053); Iran (943); Colombia (942); and Algeria (866).

“As fewer students gain access to post-graduation work opportunities, institutions may find it harder to attract applicants,” said the ApplyBoard report.

“The broader Canadian economy also stands to feel the effects. PGWP holders have been a vital source of skilled talent in sectors facing chronic shortages, from health care to technology. A contraction in approvals means fewer international graduates entering the workforce, potentially destabilizing industries facing skills shortages.”