Canada Halts Low-Wage LMIA Processing In Certain Regions

As of January 2025, Canada has updated its policy regarding the processing of Labour Market Impact Assessments (LMIAs) under the low-wage stream of the Temporary Foreign Worker Program (TFWP). The federal government has announced that it will no longer process LMIAs for positions paying below the provincial or territorial wage threshold in certain regions where unemployment rates exceed 6%.

This policy change, which was first communicated in August 2024, focuses on census metropolitan areas (CMAs) that have a higher unemployment rate. The government intends to update this list every three months, and the next revision is expected on April 4, 2025.

Employers looking to hire foreign workers under the low-wage stream must be aware of the new restrictions. If the unemployment rate in the job's location is 6% or more, the application for an LMIA will not be processed. As of January 10, 2025, the following CMAs have been flagged due to their unemployment rates exceeding 6%:

• St. John’s, Newfoundland and Labrador – 6%
• Saint John, New Brunswick – 6.1%
• Montréal, Quebec – 6.2%
• Oshawa, Ontario – 7.5%
• Toronto, Ontario – 7.9%
• Hamilton, Ontario – 6.3%
• St. Catharines-Niagara, Ontario – 6.2%
• Kitchener-Cambridge-Waterloo, Ontario – 7.3%
• Guelph, Ontario – 6.2%
• London, Ontario – 6.4%
• Windsor, Ontario – 8.8%
• Barrie, Ontario – 6%
• Regina, Saskatchewan – 6.1%
• Calgary, Alberta – 7.5%
• Edmonton, Alberta – 6.8%

Employers who wish to hire foreign workers in these areas may still be able to do so by offering a wage above the provincial or territorial high-wage threshold. If the job's wage meets or exceeds this threshold, the employer can apply for an LMIA under the high-wage stream, which is not affected by this new rule.

To check whether a particular job falls within an affected CMA, employers and employees can use the postal code of the job location. By entering the code into the Census of Population tool, the system will identify if the job is in one of the CMAs with a high unemployment rate.

Under Canada’s TFWP, employers can apply for an LMIA to hire foreign workers if they are unable to find a suitable candidate from the Canadian workforce. The type of LMIA an employer needs to apply for depends on the wage being offered. If the wage is below the provincial or territorial threshold, the employer must apply under the low-wage stream. If the wage is at or above the threshold, the application can proceed under the high-wage stream.

As of November 2024, workers coming through the high-wage stream must earn at least 20% more than the median wage in the applicable province or territory, or earn at least as much as others with the same role and experience at the same employer.

What Should Employers and Workers Do?

Employers in affected regions have the option to increase wages to fall under the high-wage stream. Workers with a job offer under the low-wage stream should check the unemployment rate for their location to see if they are impacted. If the region is on the list, workers may want to explore other CMAs where LMIAs are still being processed.

If a worker already holds a low-wage TFWP permit but cannot extend it due to the new policy, they must stop working and can apply for a visitor record to stay in Canada.

Regions Removed from the List

Some regions that previously had unemployment rates above 6% have been removed from the list. These include Trois-Rivières, Quebec; Ottawa-Gatineau, Ontario/Quebec; Winnipeg, Manitoba; and others.

The new LMIA policy is designed to prioritize local workers in areas with high unemployment rates, ensuring that foreign workers are hired in regions where they are most needed. Employers and workers must stay informed about updates to this policy to ensure compliance and find the best opportunities available.