Canada Expands Ban on Low-Wage LMIA Work Permits Across 26 Regions: What Workers and Employers Must Know
The federal government of Canada has expanded the list of cities and regions where low-wage Labour Market Impact Assessment (LMIA) applications under the Temporary Foreign Worker Program (TFWP) will no longer be processed.
As of July 11, 2025, 26 Census Metropolitan Areas (CMAs) are officially ineligible. This policy is a continuation of the government’s efforts to prioritize Canadian workers in areas where unemployment rates are 6% or higher.
This change is part of a broader strategy that aligns foreign labour demand with regional labour market conditions, and it significantly impacts employers, foreign workers, and immigration consultants.
What Changed on July 11, 2025?
The Employment and Social Development Canada (ESDC) released an updated list of CMAs where employers can no longer apply for, or renew, low-wage LMIAs. This policy is tied directly to local unemployment rates.
If the unemployment rate in a region reaches or exceeds 6%, low-wage LMIA applications will not be accepted from that area.
This affects both new applications and extensions for existing low-wage LMIA-based work permits.
This restriction is set to remain in place until the next scheduled update on October 10, 2025.
Which Cities Are Now Ineligible for Low-Wage LMIA Applications?
The following 26 CMAs currently have unemployment rates of 6% or higher and are therefore affected:
| Census Metropolitan Area (CMA) | Unemployment Rate (%) |
|---|---|
| St. John’s, NL | 7.2 |
| Halifax, NS | 6.2 |
| Moncton, NB | 6.4 |
| Saint John, NB | 7.4 |
| Fredericton, NB | 6.2 |
| Montréal, QC | 6.9 |
| Ottawa-Gatineau, ON/QC | 6.4 |
| Kingston, ON | 7.2 |
| Belleville – Quinte West, ON | 7.1 |
| Peterborough, ON | 9.9 |
| Oshawa, ON | 9.2 |
| Toronto, ON | 8.9 |
| Hamilton, ON | 6.6 |
| St. Catharines-Niagara, ON | 6.4 |
| Kitchener-Cambridge-Waterloo, ON | 6.9 |
| Brantford, ON | 6.8 |
| London, ON | 6.9 |
| Windsor, ON | 11.0 |
| Barrie, ON | 7.3 |
| Calgary, AB | 7.3 |
| Edmonton, AB | 7.6 |
| Kamloops, BC | 8.7 |
| Chilliwack, BC | 6.3 |
| Abbotsford-Mission, BC | 6.1 |
| Vancouver, BC | 6.3 |
| Nanaimo, BC | 7.3 |
This is a notable increase from the 24 CMAs listed in the previous quarter (April 4 to July 10, 2025).
What Is a Low-Wage LMIA & Why Are They Being Restricted?
The Temporary Foreign Worker Program is divided into two wage streams:
- High-wage: Jobs with wages above the provincial median
- Low-wage: Jobs with wages below the provincial median
In 2024, Canada introduced a new policy to not process low-wage LMIA applications in regions with high unemployment (6% or more), to encourage the hiring of local talent.
This decision aims to protect the domestic job market and encourage employers to offer better wages and conditions.
Which Regions Are No Longer on the Ban List?
These regions had high unemployment previously but have since improved and are now eligible again for low-wage LMIA applications:
- Drummondville, Quebec
- Guelph, Ontario
- Kelowna, British Columbia
- Red Deer, Alberta
Employers in these areas can resume applying for low-wage LMIAs in the third quarter of 2025.
How Do I Know If My Job Falls Under Low-Wage?
To determine whether a job offer is classified as low-wage or high-wage, check the latest provincial wage thresholds published by ESDC.
- If the offered wage is below the threshold → low-wage stream
- If it is above the threshold → high-wage stream
Thresholds are based on the median hourly wage in each province or territory.
What If I Am Affected? What Are My Options?
If your current or upcoming job is impacted by this LMIA restriction, consider the following strategies:
- Negotiate a wage increase with your employer to qualify for the high-wage stream.
- Wait for the next quarterly update in October to see if your region is removed from the list.
- Seek employment in a CMA where low-wage LMIAs are still being accepted.
- Apply for jobs in exempt occupations like:
- Agriculture
- Food manufacturing
- Healthcare and residential care
- Construction
- In-home caregiving roles
What Happens If My Work Permit Can’t Be Extended?
If your LMIA-based permit cannot be renewed because of these restrictions:
- You must stop working once your permit expires.
- If you applied for an extension before expiry, you may continue working under maintained status until a decision is made.
- Under a COVID-19 era policy, closed work permit holders can switch employers before receiving a new permit (authorization required from IRCC).
Final Thoughts
This quarterly update is a critical reminder for both employers and workers to monitor regional labour market conditions closely. If you’re part of the Temporary Foreign Worker Program’s low-wage stream, make sure to check the CMA list before proceeding with any applications or extensions.
This change doesn’t mean the end of opportunities—but it does require planning, adaptability, and legal awareness.
For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!
