PGWP holders entering Canadian workforce are on a hike

A recent study shows that the Post-Graduation Work Permit holders have been on the rise in the labor force for the past decade. As per the Statistics Canada study, this increase in the number of international students entering Canada has increased their participation in the Post-Graduation Work Permit Program (PGWPP).

 

A survey by Statistics Canada 

According to the survey, the number of first-time study permit holders in Canada has risen from 75,000 in the mid-2000s to 250,000 in 2019. This consistent increase at a greater proportion is moving on to take part in the Post-Graduation Work Permit Program (PGWPP) and obtain a work permit after they graduate.

 

About Post-Graduation Work Permit Program (PGWPP)

It is a temporary worker program that allows international graduates from Canadian post-secondary institutions to obtain an open work permit to stay and work in Canada.

 

The period of the post-graduation work permit is based on the length of the completed study program, up to a maximum of three years. This permit allows working in any occupation anywhere in Canada.

 

Because of these instances, the annual number of new Post-Graduation Work Permit (PGWP) holders were increased six-fold, from 10,300 to 64,700. This hike in number was observed both in men and women. But men recorded a higher proportion of PGWP holders for the same period.     

 

Among all the PGWP holders, China and India accounted for up to 51% since 2008, whereas in 2018, these two countries accounted for 66% of all issued PGWPs.

 

While Indians increased fourfold from 10 percent in 2008 to 46% in 2018, in China, the reverse trend is observed, as it recorded a decrease from 41% to 20% over the same period.

 

Ontario attracted the highest share of international graduates as a work destination in 2008 at 44 percent, and it was increased over time to 56 percent in 2018. But the share to British Columbia and Quebec was decreased between 2008 and 2018.

 

Watch the video: Increase in Post Graduate Work Permit holders in Canadian workforce

 

Eligibility of PGWPP

To get eligible for this program, candidates must complete the program of study of at least eight months at a qualified institution in Canada.

 

Labor market participation of PGWP holders

The study also shows that there is an increase in the participation of PGWP holders in the labor market. In 2008, 10,300 PGWP holders submitted positive T4 tax returns, which increased to 135,100 by 2018. According to the report, the average earnings of PGWP holders with employment income also increased from $14,500 (in 2018 dollars) in 2008 to $26,800 in 2018, which indicates greater input in the labor market.

 

The study also noted that nearly three-quarters of all PGWP holders moved to permanent residence within five years of obtaining their PGWP.

 

Conclusion

All these study findings highlight the importance of the PGWPP to both international students and the Canadian economy.

 

 “On the one hand, the PGWPP allows international students who have graduated from a recognized Canadian post-secondary institution to gain work experience in Canada and can provide the necessary job experience required to apply for some permanent residence streams.”

 

This bridges the gap between a Canadian education and in-country work experience, which improves the chances of obtaining Canadian permanent residence through federal Express Entry candidates with the highest CRS scores.

 

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