Canada’s Low Unemployment Rate and the Rise of the PGWP

international students Canada PGWP

Recent research from Statistics Canada indicates that the number of international students arriving in Canada has gone up, and as a result, participation in the PGWPP program by international grads is also increasing.

Over the last decade, the number of people in Canada with a study permit for the first time has continued to rise. The figure was around 75,000 in 2007 and reached 250,000 by 2019

More and more international students are staying in the country after they graduate. Some of them apply for the Post-Graduation Work Permit Program (PGWPP) to get a work permit after finishing their studies here.

The PGWPP is a temporary worker program that allows international students who have graduated from Canadian post-secondary institutions to obtain an open work permit that allows them to stay and work in Canada. Candidates must have completed an eight-month program of study at an eligible Canadian institution to be eligible for the program.

The duration of the permit is then based on the length of the completed study program, up to a maximum of three years.

The study found that during the period 2008-2018, the number of new PGWP holders increased six-fold, from 10,300 to 64,700.

This increase was observed for both men and women, although men accounted for a higher proportion of PGWP holders over the same period.

China and India have been the countries of origin of 51% of all PGWP holders since 2008, but by 2018 these two source countries accounted for 66%.  There has been an increase in the number of Indian students (from 10% in 2008 to 46% in 2018) migrating to Canada . The reverse trend was observed for China, with a decrease from 41% to 20% over the same period

 

Ontario had the largest share of International students in 2008, which has continued to rise to 56% by 2018. The share of those intending to go to British Columbia and Quebec, the other two most popular destinations, has decreased between 2008 and 2018.

Nearly 135, 100 PGWP holders filed positive taxable income amounts in the T4 federal taxes for 2018. This is a huge leap from the 10, 300 PGWP holders who filed positive taxes in 2008.

Over that period, median earnings of PGWP holders with employment income increased from $14,500 (in 2018 dollars) in 2008 to $26,800 in 2018. This shows that they are getting more involved in the labor market.

It’s worth mentioning that the study found that 75% of PGWP holders transitioned to permanent residence within five years. The transition rates among PGWP holders for college and master’s level programs was the highest.

These findings, the study concludes, highlight the importance of the PGWPP to both international students and the Canadian economy.

 

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