Canada moves to expand work authorization for international students and graduates

Co-op students and international student graduates will get increased work authorization, should the federal government implement its proposed changes.

International students on co-op work terms would be authorized to work without permits, while applicants for post-graduation work permits (PGWPs) would gain expanded authorization during the processing of their applications.

Foreign apprentices would also benefit from increased work authorization without requiring a permit.

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The contemplated changes come in the form of proposed amendments to Canada’s regulatory framework, published by Immigration, Refugees and Citizenship Canada (IRCC) on its website on April 1, 2026.

The proposed changes have entered the consultation phase, with IRCC planning to consult with stakeholders in early spring 2026.

What would change

The proposed amendments would:

• Extend existing authorization to work without a work permit to:
  • International students waiting for a study permit extension decision; and
  • International graduates waiting for a decision on their PGWP application.
• Remove the co-op work permit requirement for international students, meaning one permit would cover both studying and working as part of their program;
• Remove the study permit requirement for foreign apprentices who meet certain conditions; and
• Standardize how work authorization applies during scheduled academic breaks.

Under the current system, international students enrolled in programs with a co-op or work-integrated learning component must hold both a study permit and a separate co-op work permit.

Similarly, foreign apprentices must obtain a study permit to complete their training, even if they already hold a work permit. There is currently an exception in place for qualified construction trade apprentices in Canada, who do not require a separate study permit to complete technical training.

When international students finish their program, they can apply for a PGWP. However, there's a gap between graduating and receiving the PGWP. During this window, graduates aren't without options. According to IRCC, graduates can work full-time while waiting for a PGWP decision, provided they completed their program, were already eligible to work off campus during their studies, and applied before their study permit expired.

IRCC says the goal is to cut administrative burden and operational inefficiency that comes from requiring foreign nationals to hold two permits to complete one educational program.

How this could affect you

If implemented, the changes would reduce the number of applications international students would need to file when enrolling in programs with a work-integrated learning component.

The extension of work authorization for those awaiting study permit extensions or PGWP decisions could also provide more stability. Currently, gaps between permit expiry and approval of a new permit can leave students and graduates in limbo, and unsure about their ability to work, even though current regulations do allow graduates to begin work before receiving their work permit.

IRCC notes that designated learning institutions (DLIs) would face new reporting requirements on international students enrolled in work-integrated learning programs.

How likely are these changes to take effect?

The streamlining proposal is at an early stage. It was first added to the forward regulatory plan on April 1, 2026, and consultations with provinces, territories, and education stakeholders are planned for spring 2026.

No timeline for implementation has been announced.

That said, IRCC has followed through on other initiatives listed in its forward regulatory plan.

The plan's proposal to update outdated fee regulations has already resulted in permanent residence fee increases taking effect on April 30, 2026, and citizenship fee increases that took effect on March 31, 2026. Fee increases for International Experience Canada (IEC) and inadmissibility services were also implemented on December 1, 2025.

Given that this proposal aligns with the government's broader push to simplify and modernize the immigration system, there's reason to expect it will move forward — though the pace of implementation remains unclear.

The state of international students and foreign workers in Canada

These proposed changes come as Canada continues to reduce its temporary resident population.

According to the most recent IRCC data, the downward trend in new arrivals of both international students and foreign workers is continuing into 2026. Total new arrivals in January 2026 were 28% lower than in January 2025 — a drop of about 7,205 people.

New student arrivals fell 37% year over year in January 2026, with 7,040 study permits issued compared to 11,215 in January 2025. New worker arrivals dropped 20%, from about 14,880 in January 2025 to 11,850 in January 2026.

Over the full year, 2025 saw 53% fewer total arrivals than 2024 — a decline of about 361,935 people.

As of January 31, 2026, about 460,695 people held only a study permit in Canada — down from 603,295 a year earlier. About 1.48 million held only a work permit, while roughly 234,770 held both a study and work permit.

The federal government has committed to reducing Canada's temporary population to less than 5% of its overall population, down from 7.4% in October 2024.

It has also announced further reductions in new student and worker arrivals for 2026 to 2028 under the latest Immigration Levels Plan.

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