Canada Updates Low-Wage LMIA Policy for January 2025: 15 CMAs Ineligible for Processing
In a move that impacts employers and foreign workers alike, the Canadian government has released an updated list of Census Metropolitan Areas (CMAs) where low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP) will no longer be processed as of January 2025. The decision follows an announcement made by the federal government in August 2024, which introduced new conditions for the TFWP’s low-wage stream.
Key Highlights of the New Policy
- Eligibility Criteria: LMIAs under the low-wage stream will not be processed in regions with an unemployment rate of 6% or higher.
- Impact on Employers and Workers: This affects employers who wish to hire foreign workers for low-wage positions in these areas, as well as workers seeking to renew their permits or transition to new roles.
- Regular Updates: The list of ineligible CMAs will be reviewed and updated every three months, with the next update scheduled for April 4, 2025.
Which Regions are Affected by the January 2025 Policy?
As of January 10, 2025, the Canadian government has identified 15 CMAs that meet the unemployment threshold of 6% or higher. Employers and foreign workers in these regions should be aware that LMIAs for low-wage positions will no longer be processed. Here is the full list:
| Census Metropolitan Area (CMA) | Unemployment Rate |
|---|---|
| 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% |
How Can Employers and Workers Navigate the Policy Change?
For those in affected CMAs, there are a few potential pathways:
- Increasing the Wage: Employers may consider raising the wage for the position to meet the criteria for the high-wage stream of the TFWP. This would make the position eligible for LMIA processing.
- Waiting for Changes: Workers with low-wage job offers in these regions can ask their employers to wait for three months, after which the unemployment rate data will be updated, potentially changing the status of their region.
- Focusing on Other Areas: Job seekers can also look for opportunities in other regions where low-wage LMIAs are still being processed. By focusing on areas with lower unemployment rates, workers may still be eligible for the low-wage stream.
- Loss of Status: Foreign workers whose work permits cannot be extended because their region no longer qualifies for low-wage LMIAs must cease working. They may apply for a visitor record to remain in Canada as a visitor if desired.
Understanding the Low-Wage Stream and Its Requirements
The low-wage stream is a part of Canada’s Temporary Foreign Worker Program (TFWP), which allows employers to hire foreign workers to address labour shortages in certain industries. The stream is reserved for positions that offer wages below the provincial or territorial wage thresholds.
If a position offers a wage that is at or above the threshold for the region, the employer must apply for the high-wage stream. If the wage is below the threshold, the employer must apply under the low-wage stream.
Wage Thresholds and Changes to the High-Wage Stream
As of November 2024, the hourly wage for workers under the high-wage stream has been adjusted to be 20% higher than the median wage in the relevant province or territory or higher than what other workers in similar positions at the same employer earn. Workers with wages below this threshold will have to be hired through the low-wage stream instead.
How to Check if Your Job is in a CMA
Employers and workers can verify whether a job is located in a CMA by following these steps:
- Enter the full postal code of the job location on the Census of Population website.
- On the Geography search results page, find the designation “Census metropolitan area/ Census agglomeration.”
- The page will display the CMA name, allowing workers and employers to check if it is part of the list of ineligible regions.
What is a Census Metropolitan Area (CMA)?
A Census Metropolitan Area (CMA) is a geographic region defined by Statistics Canada, composed of one or more municipalities with a core population of at least 100,000 people, with 50,000 or more residing in the central core area. The CMA is defined based on commuting patterns and the degree of economic and social integration between the core and surrounding areas.
Previous Changes and Exclusions from the List
While some CMAs had unemployment rates of 6% or higher between October 11, 2024, and January 9, 2025, they have been removed from the list as of January 10. These regions are now eligible for low-wage LMIA processing once again. The following CMAs are no longer on the ineligible list:
- Trois-Rivières, Quebec (5.2%)
- Ottawa-Gatineau, Ontario/Quebec (5.4%)
- Kingston, Ontario (5.7%)
- Brantford, Ontario (4.2%)
- Winnipeg, Manitoba (5.6%)
- Abbotsford-Mission, British Columbia (5.4%)
- Vancouver, British Columbia (5.9%)
Looking Ahead: Regular Updates to the List
The list of eligible and ineligible CMAs will be reviewed and updated every three months. The next update is expected on April 4, 2025, so employers and workers should stay informed and check the latest data to ensure compliance with LMIA processing guidelines.
In summary, employers and foreign workers must adapt to the new policy by staying informed about unemployment rates in their respective regions and exploring alternative solutions if their CMA is ineligible for low-wage LMIA processing. With regular updates to the list, there are opportunities to adjust strategies and navigate the changing landscape of Canada’s labour market.
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