Anyone studying on a degree programme in Canada will be able to stay in the country for three years after graduation while looking for a job, according to new government regulations.

This liberalisation of the Canadian work visa rules is in stark contrast to policies in the US or UK, where it is becoming increasingly difficult for overseas students to get work visas.

The new Canadian rules, which apply to undergraduate, masters and doctoral students – including MBAs – take immediate effect.

At the Rotman school at the University of Toronto, which lobbied heavily for the changes, careers director Jeff Muzzerall says they are “really thrilled. We really believe this will help Canada become more effective”.

Mr Muzzerall says one problem facing overseas students has been that they take out loans in Canada in order to study there then have to return home on graduation because they cannot get a job in Canada. The ruling may encourage more overseas students to apply to Canadian business schools.

In Vancouver there is similar excitement at the Sauder school at the University of British Columbia, says dean Daniel Muzyka.

“Obtaining a degree from a Canadian university also facilitates the application for permanent residency status and, subsequently, citizenship so students, especially at the graduate level, take advantage of this upon graduation.”

By becoming Canadian citizens, graduates have increased opportunities of getting a job throughout North America through Nafta, he says.

In 2007, some 64,000 international students started their studies in Canada.