New LMIA Rules Impact Foreign Workers in 24 Canadian Cities

On April 4, 2025, Canada updated its list of cities where employers cannot apply for low-wage Labour Market Impact Assessments (LMIAs). This rule applies in places where unemployment is 6% or more. The change will stay in place until July 10, 2025.

This update is very important for employers hiring through the Temporary Foreign Worker Program (TFWP) and for foreign workers hoping to work in Canada. If a city’s unemployment rate is 6% or higher, employers there can’t hire foreign workers for low-wage jobs. They also can't renew permits for current workers in those jobs.

The rule affects 24 Census Metropolitan Areas (CMAs), which are cities with populations of 100,000 or more. Some of the major cities on the list include Toronto (8.6%), Windsor (9.3%), Calgary (7.8%), and Edmonton (7.3%). These areas won’t be able to process low-wage LMIA applications until at least July 11, 2025.

A few cities were added to the list this quarter, such as Fredericton, Kamloops, and Red Deer. Some cities like Regina and London have now dropped below the 6% mark, which means they can process low-wage LMIAs again.

Peterborough saw the biggest jump in unemployment, rising from 4.5% to 9.9% in just three months. Meanwhile, cities like Victoria (3.4%) and Halifax (4.8%) continue to stay below the cutoff and remain eligible for LMIA applications.

This rule came into effect in September 2024 and is reviewed every three months—January, April, July, and October. It is designed to protect Canadian workers in cities with high unemployment.

But it also creates problems. Many businesses rely on foreign workers, especially in jobs that are hard to fill. Without low-wage LMIAs, they may face staff shortages.

There are ways around this rule. Employers can raise wages and apply through the high-wage LMIA stream. For example, in Ontario, the new high-wage cutoff is $34.07 an hour. Also, jobs in healthcare, farming, and construction are not affected by the 6% rule.

Foreign workers also have options. They can look for jobs in cities where LMIAs are still allowed. They can also ask employers to increase their wage or move to a different city. If their work permit expires, they can apply for a visitor record, but they won’t be allowed to work.

To see if a job location is in an affected city, use the Census of Population tool. Enter the postal code and check if it falls under a CMA with a high unemployment rate. If not, the LMIA process can still go ahead.

This update comes at a time when Canada is dealing with rising inflation, job losses, and a housing crisis. By blocking low-wage LMIA applications in high-unemployment areas, the government hopes to give Canadian workers better job chances. Still, many worry that it could hurt businesses and drive skilled foreign workers away.

The next update will arrive on July 11, 2025. Until then, employers and job seekers must stay alert and plan carefully.