Canada’s New Work Permit Rules: Online Applications & Stricter Study Caps

TL;DR

Canada’s new PGWP application process has sparked a row among students. It came as a surprise after more than a decade of a smooth immigration policy which called for easier immigration than other western countries.. The newer changes include enhanced financial capacity, verification of acceptance letters and preference of some programs over others. The newer measures align education with manpower rationalisation. Other concerns, which have led to the situation include ‘Canada’s Housing crisis’ in wake of numerous immigrants and tense diplomatic relations with New Delhi. The latter has been portrayed by the gradual decline in the number of applications by Indians. 

Canada’s New Work Permit Rules: Online Applications & Stricter Study Caps

Since June 21, 2024, the process for getting a Canadian Post-Graduation Work Permit is  online only. PGWP applications will not be accepted at port of entry. The eligible persons may apply whether they are already in Canada or they are in another country. 

For your understanding, PGWP is the post-graduation work permit which is given to students who graduated from a designated learning institution (DLI) and want to stay in Canada temporarily to work. However graduation from a DLI doesn’t automatically make you eligible for a PGWP. Check the DLI list to find out which schools have eligible programs.

According to Canada’s Minister of Immigration, Refugees and Citizenship, Marc Miller, as per a press release titled Canada Improves Fairness for Applicants by Ending Post Graduation Work Permit Flagpoling, the process for applying for the PGWP has been made strictly online in order to reduce the practice of flagpoling. The minister also said that the step would make the process more fair for all applicants and he assured that the government was committed to speeding up PGWP permit processing times.

What is Flagpoling? 

Temporary residents of Canada bypass the normal wait times involved in applying for a work or study permit online by leaving the country and then immediately re-entering to receive same-day immigration services. Flagpoling uses significant resources at the border, taking officers away from enforcement activities, causing delays for travellers and slowing down the movement of goods. From March 1, 2023, to February 29, 2024, PGWP applicants represented about one fifth of the foreign nationals who attempted to flagpole.

What is its impact on International students?

The main reason that the government cites for changing the rules for getting a PGWP involves manpower rationalisation. Significant modifications to this program to better align with the evolving needs of the Canadian labour market. 

The government wants to balance the influx of international students with the demand for skilled labour across various sectors.  Chiefly, it is looking at the supply of labour for specific occupations.  PGWP eligibility is being tied more closely to programs that prepare students for high-demand occupations. (This means matching up Canada’s National Occupation Classification system with the Classification Instructional Programs).  In simple words, the idea is to strongly encourage educational programs to adjust to labour market needs.

Getting a PGWP will be easy for students entering occupations in shortage, but more difficult for graduates from other programs. IRCC notes that between 2018 and 2023, work permits issued under the PGWP increased by 214 percent.  This significant rise reflects the growing reliance on the PGWP for integrating international graduates into the workforce. 

It is worth noting that the number of Indians studying in Canada had surged over the past five years, rising from 107,070 in 2018 to the current figure of 1,028,850 (end of 2023).  In recent months however, it has dropped significantly.  In 2022 of the total study permits issued, 41 per cent went to Indians.  The percentage has since fallen to 37.  Study permit applications from India fell from 190,419 (July and November 2022) to to 120,096 (July and November 2023). The Immigration Minister said that the decline was due to bilateral tensions following Canada’s allegations linking Indian agents to the killing of Hardeep Singh Nijjar in September 2023.

2024 Jan 17: Hindustan Times: Permits issued to Indian students fall due to bilateral tensions: Canada

Is it just about a government carrying out a manpower rationalization exercise? Or just about some diplomatic tension?

When we look back on the past year’s news coming out of Canada pertaining to international students we see concerns about the increasing volume of newcomers and alarm over Canada’s housing affordability crisis.

The government’s critics point out that from 2010 onward successive Canadian governments have implemented policies designed to radically increase the number of international students in Canada, and to facilitate their working in Canada while studying and after graduation.  The critics describe blaming international students or immigrants for a housing shortage hypocritical.

In the words of Calgary immigration lawyer Raj Sharma, “The minister who’s talking about capping international students is the same minister that eliminated the 20-hour limit of working in a week for the international students.”

 April 23, 2024: Toronto Star: Canada threw open its doors to visitors after the pandemic. Now, many don’t want to leave

Sharma concedes that concentration of international students in particular urban areas has contributed to the rising rental costs and strained housing supplies in the GTA, the Lower Mainland in B.C. and parts of Alberta and the Maritimes, but points out that the housing challenges predated the influx of international students. “International students have become such an integral part of the immigration system and the Canadian economy that it’s hard to just turn the tap on and off,” he said.

Meanwhile, Randal Bartlett, director at Desjardins (“North America’s largest financial cooperative”) warned that “Any tweak to Canada’s temporary resident numbers, including students, could have harmful effects on the economy.  Remember, international education brings $22 billion to the Canadian economy and supports more than 200,000 jobs in Canada.  Policies that discourage international students from coming here will have consequences.  This will be felt in the overall economic activity generated by foreign students coming to Canada, as well as the negative consequences for post-secondary institutions in Canada who have backfilled a lack of financial support from governments with tuitions from foreign students.”

Jan 24, 2024: BNN Bloomberg: Bank of Canada ‘keeping an eye’ on student visa cap: Rogers. The change in the application process follows other changes that went into effect on January 1 this year. 

Canadian Govt. Introduces New Regulations

In addition to the aforementioned changes, the Canadian regulations landscape for international students now includes the following updates:

Financial Requirement Doubles 

Study permit applicants are required to demonstrate financial capacity by showing CA$20,635.  (This is more than double the previous requirement of CA$10,000.)

Preventing Students from Acceptance Letter Fraud

Effective December 1, 2023, post-secondary designated learning institutions (DLIs) in Canada will be required to directly verify each applicant’s letter of acceptance with Immigration, Refugees, and Citizenship Canada (IRCC). This enhanced verification process is designed to protect prospective students from fraudulent acceptance letters, addressing issues uncovered in recent fraud investigations. The goal is to ensure that study permits are issued solely based on genuine letters of acceptance.

Study permit cap

Canada will grant no more than 364,000 new study permits (applies to 2024 and 2025). In 2022, Canada granted more than 800,000 study visas. Of these approximately 40 percent went to Indian students.

International students to be counted in Immigration Levels Plan

For the first time, students will be included in the census of temporary residents in the annual Immigration Levels Plan. The Immigration Levels Plan aims to reduce stress on Canada’s social systems.

Longer Work Permits for Shorter Graduate Programs

Graduates of master’s and other short graduate-level programs will be eligible for a three-year work permit, regardless of the program’s length.  The longer duration aims to provide graduates with additional opportunity to gain Canadian work experience, which improves their eligibility for permanent residency.

Proof of Job Offers

In order to extend their PGWP beyond one year, international students may be asked for proof of a job offer aligned with an occupational shortage list.

Additional Eligibility Criteria

• International students may be examined for language proficiency
• International students may be subject to provincial approval for extending the PGWP beyond the first year.

Exemptions for Specific Cohorts

Exemptions may be granted to certain groups, such as francophone students or graduates of certain advanced degree programs.

Revised Occupational Shortage List

Occupational shortage list will be revised more frequently.  Students currently studying will be affected by the revisions.

PGWP eligibility criteria will be aligned with Provincial Nominee   Programs (PNP)

Profiles of PGWP applicants will be matched with specific occupational needs of provinces to ensure suitability for long-term work.

Restrictions on Institutions with Licensing Agreements

Institutions with curriculum licensing agreements will no longer be eligible to enroll new international students planning to get PGWPs.  (No impact on existing students.  Aim is to improve the quality of education and support provided to international students.)