Foreign students to witness a surge in PGWP and median earnings

Recently, on studying the labour market participation of Post Graduation Work Permit (PGWP) holders from 2008 to 2018, Statistics Canada found that the number of international students who received PGWP during this time multiplied 13 times. The numbers went from 10,300 in 2008 to 135,100 in 2018. While the numbers increased in this time frame, the participation rate remained steady and three-quarters of PGWP holders reported earnings every year. The study also reported an increase in the average amount of labour input as the median annual earnings received by PGWP holders from 2008 to 2018 have increased from $14,500 to $26,800. 

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Canada’s national statistical agency, Statistics Canada conducts research to examine how international students engage in the Canadian labour market after graduation on receiving a Post Graduation Work Permit (PGWP). Nearly three-quarters of the international students, who received the PGWP, became permanent residents within five years. Statistics Canada credits these high rates of transition to permanent residence to the Canadian work experience as it increases the chances of PGWP holders to be selected as immigrants. 

Median earnings were consistent amongst all Canadian workers who were Post Graduate Work Permit holders in 2018 and the earnings were highest for those employed in utilities, mining and oil and gas extraction, and public administration. On the other hand, the lowest earnings were by those who worked in administrative and support, educational services, retail trade, waste management and remediation services, and accommodation and food services. During the 10-year reference period, PGWP holders who belonged to the educational services, accommodation and food services, real estate and rental and leasing, as well as retail trade witnessed the highest earnings growth.

Most of the PGWP holders belonged to two countries – India and China, both of them making 66% of all the permits issued in 2018 from 51% in 2008. While the share of Indian international students who received a PGWP,  grew from 10% in 2008 to 46% in 2018 and increased four times, it was just the opposite in China. The percentage of international students in China receiving a PGWP diminished from 41% to 20%.

To support its post-pandemic growth, Canada announced their plan to welcome more than 1.3 million immigrants in the next three years. The Open Work Permit offered by the country is mostly offered by international students as it allows them to move to Canada without an offer letter from an employer who has paid the compliance fee or without a Labour Market Impact Assessment (LMIA). Getting an Open Work Permit authorises individuals to work for an organisation provided they have not been listed ineligible by the Government. 

Most LMIA-exempt work permits in 2021 were offered to international graduates who were eligible for a Post-Graduation Work Permit (PGWP). Therefore, making them eligible to work in Canada for up to three years on completion of  a full-time study program of at least two years in duration.

Depending on the duration of the study program, PGWP grants permission to eligible graduates to work anywhere in Canada for up to three years. Having a Canadian education and work experience makes PGWP holders get access to the country’s economic-class immigration program. This access can be achieved only once in a lifetime and is not extendable or renewable.

The only condition to be eligible for a PGWP is that a student needs to have graduated from a full-time program of at least 8 months at a Canadian Designated Learning Institution (DLI). Programs that are offered for a duration of at least two years in may be eligible for a three-year Post Graduate Work Permit.

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