PACP - Post-Graduation Work Permit Program and Labour Market Impact - December 5, 2023
Key Facts And Figures
The Post-Graduation Work Permit Program (PGWPP) is a one-time open work permit with no requirement for a job offer, and very few restrictions on type of work, location or employer. The duration of the PGWP is linked to the length of program of study for a maximum of three years.
The objectives of PGWPP are to act as a one-time bridge from education into the Canadian labour market. From there, PGWP holders may transition to other work permits aligned with their occupations or they may transition to permanent residence, if they meet the eligibility requirements.
The PGWPP allows students who have graduated from eligible Canadian post-secondary institutions to gain skilled work experience in Canada, which can enable them to apply for a range of economic-class immigration programs.
In 2022, there were over 132,000 new PGWP holders in Canada, up from just over 74,000 in 2018.
In 2022, 12% of all foreign nationals who transitioned to permanent residence (52,733 of 437,500) had previously held a PGWP.
IRCC has limited mechanisms to collect and monitor labour market outcomes of PGWP holders to gain insights into whether they are working full-time and in which sectors. Evidence is also lacking on the labour market impact of PGWP holders on wage suppression, worker displacement, or productivity rate.
Existing information suggests that many PGWP holders are not working in occupations aligned with their field of study.
Limited data suggests that the majority of PGWP holders reporting employment income are in Ontario, and that the top two sectors in which they are reporting employment earnings are in Retail Trade, and in Food and Accommodation, which are sectors characterized by low earnings.
To date, wage tests that could mitigate wage suppression have not been required for PGWPs.
Key Messages
The PGWPP provides post-study work opportunities for up to three years for graduates of certain post-secondary institutions.
Applications for a PGWP are exempt from a Labour Market Impact Assessment.
Since PGWPs are open work permits, Immigration, Refugees and Citizenship Canada (IRCC) has limited mechanisms to collect and monitor information on the type of work in which PGWP holders are employed.
We are reviewing the PGWP program as part of the International Student Program modernization, to address issues related to program integrity, student vulnerability, and to better align with labour market needs.
Supplementary Information
A Statistics Canada and IRCC studyFootnote 1 found that:
In 2018, median earnings were highest for PGWP holders employed in mining, oil and gas extraction, utilities, and public administration.
The lowest earning amounts were reported by those employed in educational services; administrative and support, waste management and remediation services; accommodation and food services; and retail trade.
These differences across sectors are consistent with the general pattern among all Canadian workers. Earnings growth over the 2008-to-2018 period was highest for those PGWP holders working in accommodation and food services, retail trade, real estate and rental and leasing, and educational services.
