Canada has updated where employers can submit low-wage LMIA applications under the Temporary Foreign Worker Program. As of July 10, eight census metropolitan areas are back in processing, while four others have been added to the restriction list. The change matters for foreign workers, employers, and anyone planning a Canadian work permit strategy in affected cities and regions.
Low-wage LMIA processing rules have changed again
The federal government has updated the list of Canadian cities where low-wage Labour Market Impact Assessment applications can be processed. These changes took effect on July 10 and will remain in place until at least October 9, unless the government announces something different earlier.
Under current rules, low-wage LMIA applications are not processed in census metropolitan areas, or CMAs, where the unemployment rate is 6% or higher. This rule applies under the Temporary Foreign Worker Program and affects employers who want to hire foreign nationals for jobs that fall below the provincial or territorial wage threshold.
This matters because a positive or neutral LMIA is often required before a worker can apply for an employer-specific Canadian work permit. Without that LMIA, many low-wage job offers cannot move forward.
For people considering a broader immigration to Canada process, this update is also important. Work experience, employer support, and regional opportunities can all influence long-term plans, including permanent residence through Express Entry immigration pathways, provincial programmes, or community-based options.
Which regions returned to processing?
Eight CMAs moved back below the 6% unemployment mark, which means employers in those locations can once again submit low-wage LMIA applications. These regions are Halifax, Saint John, Fredericton, Drummondville, Kingston, St. Catharines-Niagara, Winnipeg, and Regina.
For employers and workers in Atlantic Canada, Manitoba, Saskatchewan, Ontario, and Quebec, this reopening may create new hiring opportunities. In some cases, it may also revive paused recruitment plans that could not proceed during the previous quarter.
Which regions are now restricted?
Four CMAs were added to the restriction list in this update: Saskatoon, Red Deer, Kamloops, and Chilliwack. Employers offering low-wage positions in these regions may now need to delay hiring, review whether an exemption applies, or consider whether the wage can be increased enough to move the role into the high-wage stream.
Where low-wage LMIA applications will not be processed
As of July 10, low-wage LMIA applications are not being processed in 26 CMAs across Canada. These include major labour markets in several provinces, especially Ontario, Alberta, and British Columbia.
| CMA | Unemployment rate |
|---|---|
| Montréal | 6.8% |
| Ottawa-Gatineau | 6.7% |
| Toronto | 7.3% |
| Oshawa | 8.5% |
| Kitchener-Cambridge-Waterloo | 8.1% |
| London | 7.8% |
| Windsor | 7.9% |
| Calgary | 7.0% |
| Edmonton | 7.2% |
| Vancouver | 6.7% |
| Kelowna | 7.5% |
| Kamloops | 7.0% |
Other restricted CMAs include St. John’s, Moncton, Belleville–Quinte West, Peterborough, Hamilton, Brantford, Guelph, Barrie, Greater Sudbury, Saskatoon, Red Deer, Chilliwack, Abbotsford-Mission, and Nanaimo.
The government updates this list every quarter. The next review is expected on October 10. That means a city that is restricted now may become eligible again later, depending on local unemployment data.
Why the government uses this rule
Ottawa introduced this policy in 2024 to limit access to the low-wage stream in urban labour markets with higher unemployment. The stated goal is to give Canadian citizens and permanent residents stronger access to available jobs before employers turn to overseas recruitment.
Although IRCC manages work permit issuance, LMIA decisions are tied to Employment and Social Development Canada rules. Together, these policies shape how employers hire foreign workers and how applicants plan temporary and permanent pathways.
What employers and foreign workers can do next
If a job is located in a restricted CMA and the wage falls below the local threshold, the employer generally cannot move ahead with a low-wage LMIA application during this quarter. That does not always mean the opportunity is gone, but it does mean the strategy may need to change.
Option 1: Check whether the job is exempt
Some jobs are not affected by the refusal-to-process measure. Exempt categories include certain roles in primary agriculture, construction, food manufacturing, hospitals, nursing and residential care, some in-home caregiver positions, support for permanent residence only, and some short-duration positions that meet specific conditions.
For families looking at care-related work, it may also help to review caregiver immigration programmes and related work permit options, since not every care role is treated the same way under federal policy.
Option 2: Review the wage level
If the employer can raise the wage so the position meets or exceeds the provincial or territorial threshold, the role may fall into the high-wage stream instead. That stream is not subject to this CMA unemployment restriction.
Updated wage thresholds are also changing in mid-July. For example, Ontario rises from $36.00 to $36.92 per hour, British Columbia from $36.60 to $38.40, Alberta from $36.00 to $37.50, Manitoba from $30.16 to $31.33, and Saskatchewan from $33.60 to $34.62.
Because wage classification can affect the entire application strategy, employers should review the numbers carefully before submitting. Foreign workers should also understand whether their job offer supports an LMIA-based work permit or whether another route may be more suitable, such as LMIA-exempt work permit options.
Option 3: Consider another region or pathway
Some applicants may benefit from looking outside large restricted CMAs. Jobs in smaller communities, rural areas, or census agglomerations are not automatically blocked by this measure. Depending on the location, this could align with programmes such as the Atlantic Immigration Program or the Rural and Northern Immigration Pilot.
Others may decide to focus on permanent residence planning instead of relying only on a temporary work route. For skilled workers, this can include Provincial Nominee Program pathways or federal options under Express Entry. Language scores from IELTS, CELPIP, TEF, or TCF, along with an Educational Credential Assessment, can play a major role in these applications.
If you are unsure which route fits your profile, it may be wise to assess your immigration options before making a decision based on one job offer alone.
How to check whether a job location is affected
One practical challenge is that many applicants do not know whether a work location is inside a restricted CMA. The city name on a job ad does not always tell the full story, especially near municipal borders.
Simple steps to verify the location
- Find the full postal code for the actual work location, not just the employer’s head office.
- Use the Government of Canada census search tool to identify the census metropolitan area or census agglomeration.
- Compare that result with the current list of restricted CMAs for the quarter.
If the location is in a listed CMA, low-wage LMIA processing is restricted for now. If it is in an unlisted CMA or in a census agglomeration, the application may still be eligible.
What this means for workers already in Canada
Temporary foreign workers whose permit is expiring may face difficult timing if their extension depends on a low-wage LMIA in a newly restricted CMA. If they cannot secure a new basis to keep working, they must stop work when their authorization ends. In some cases, changing to visitor status may help preserve legal status in Canada while they review next steps.
This is also a good moment to look at longer-term planning. Canadian work experience can support future eligibility under the Canadian Experience Class, while those still building their profile may want to improve their CRS score for future draws.
Immigration rules, wage thresholds, and programme requirements can change quickly, so readers should always confirm current rules with IRCC and other official government sources or speak with a licensed immigration professional before making decisions. EverNorth Immigration is here to help with experienced, compassionate support at every stage of your move to Canada, and you are welcome to book your free immigration assessment for a professional review of your options.
