According to a new study by Statistics Canada, in the past few years, the number of international students immigrating to Canada has been on the rise, and as a result, there has been more participation in the Post-Graduation Work Permit Program (PGWPP).
The study reveals that over the last decade, the count of first-time study permit holders significantly increased to 250,000 in 2019, and the number was around 75,000 in the mid-2000s.
Moreover, in relation to this rising trend, more international students have started to participate in the PGWPP and secured a work permit after the completion of their graduation in Canada.
The Post-Graduation Work Permit Program (PGWPP) can be defined as a temporary program that offers a possibility to the international students (who have completed their graduation from a post-secondary institution in Canada) to get an open work permit in Canada, which will enable them to work and reside in the country.
In order to meet the eligibility for PGWPP, candidates are required to complete at least an 8-month long study program at an eligible Canadian institution. The validity period of this work permit depends upon the duration of the completed study program, and the maximum validity of this permit can be up to three years.
Similar to an open work permit, a post-graduation work permit (PGWP) enables the international graduate to work in any occupation in any province or territory of Canada, and also, they can change employers as they wish.
The study also shows the annual number of new PGWP holders has risen six times in the period between 2008 and 2018; these numbers increased from 10,300 to 64,700
Furthermore, this rise in number was observed for both women and men; however, during this period, men accounted for a greater number of PGWP holders.
Since 2008, China and India had the maximum share of PGWP holders, with 51% of all PGWP holders; however, by 2018, these two countries had contributed 66 percent of all issued PGWPs. To break the numbers further, the number of PGWP holders from India has increased by more than four times during the same period, as India accounted for 10% of all PGWP holders in 2008, and by 2018, India’s share increased to 46%. On the other hand, China has seen an opposite trend over the same duration, as their share of all PGWP holders decreased from 41% to 20%.
In 2008, Ontario welcomed the largest share (44 percent) of international students as a career destination, and this number has since increased to 56 percent in 2018. Between 2008 and 2018, the percentage of foreign students willing to arrive in British Columbia and Quebec has decreased; these two provinces used to be other popular destinations among international students.
The study reveals that in terms of labour market participation of PGWP holders, a total of 10,300 positive T4 tax returns were submitted by the PGWP holders, and this number increased to 135,100 by the year 2018. The report further indicates the median wages of PGWP holders with employment income climbed from $14,500 (in 2018 USD) in 2008 to $26,800 in 2018, and this trend shows the increased labour market input.
Another important point that the study highlights is that about three-fourths of all PGWP holders transitioned to permanent residence within five years of obtaining their PGWP. Also, PGWP holders who have a college and master’s level program degree have the maximum transition rate.
The study has emphasized the importance of the PGWPP for both international students as well as the economy of Canada.
The PGWPP allows international students who have completed their graduation from an eligible post-secondary institution in Canada to gain work experience in Canada and also gain the required experience to apply for some of the permanent residence programs.
The PGWPP acts as a bridge for international students that help them to gain Canadian work experience after completing their Canadian education, and then they will have a better possibility of getting permanent resident status through the federal Express Entry system. Under the Comprehensive Ranking System (CRS) of Express Entry, a Canadian degree and work experience can reward more points, and this will improve their chances of securing permanent residency in Canada. Other immigration programs, including Provincial Nominee Program (PNP) and the Quebec Experience Program (QEP), also prioritize candidates who have prior Canadian work experience and a Canadian degree.
The study concludes the importance of PGWPP and notes, “the PGWPP facilitates international students’ contribution to the Canadian labour market, increases the pool of qualified candidates for eventual immigration and serves to make Canada a more attractive destination of study.”
