Six More Regions Face LMIA Processing Freeze for Low-Wage Jobs Starting October 10
Federal Government Expands LMIA Suspension Zones Across Canada
The Government of Canada has expanded its list of regions where low-wage Labour Market Impact Assessments (LMIAs) will not be processed, starting October 10, 2025.
This marks the third quarterly update since the measure was introduced in 2024, reflecting the government’s continued focus on balancing local employment opportunities with temporary foreign worker demand.
The number of affected Census Metropolitan Areas (CMAs) has now climbed from 26 to 32, signaling a tightening of access for employers hiring under the low-wage stream of the Temporary Foreign Worker Program (TFWP).
New Regions Added to the LMIA Processing Freeze
Beginning October 10, 2025, six additional regions will be suspended from low-wage LMIA processing due to unemployment rates above 6%.
Newly added CMAs include:
- Guelph, Ontario
- Greater Sudbury, Ontario
- Winnipeg, Manitoba
- Regina, Saskatchewan
- Lethbridge, Alberta
- Red Deer, Alberta
- Kelowna, British Columbia
These regions will remain ineligible for low-wage LMIA processing until January 8, 2026, when the list is scheduled for its next review.
Regions Removed from the Freeze
One region — Peterborough, Ontario — has been removed from the ineligible list, meaning employers there can resume submitting low-wage LMIA applications from October 10 onward.
Background: Why the Policy Was Introduced
In August 2024, Ottawa announced it would suspend processing of low-wage LMIAs in any CMA with a local unemployment rate of 6% or higher.
This move aimed to ensure that Canadian citizens and permanent residents are given priority access to available jobs in regions with weaker labour markets.
Since then, Employment and Social Development Canada (ESDC) has published a quarterly list of CMAs based on the latest Statistics Canada unemployment data to help employers and foreign workers understand where LMIA restrictions apply.
Full List of CMAs Currently Ineligible (as of October 10, 2025)
As of this update, 32 CMAs are not processing low-wage LMIA applications. Among them:
- Toronto, ON – 9.5% unemployment
- Vancouver, BC – 6.8%
- Calgary, AB – 8.0%
- Ottawa-Gatineau, ON/QC – 7.7%
- Windsor, ON – 11.3% (highest in the country)
- Nanaimo, BC – 9.7%
- Kelowna, BC – 6.0%
The full list reflects a wide geographical impact — from Atlantic Canada to British Columbia — underscoring the economic challenges in multiple regions.
What Employers Can Do
Employers in affected regions have several options:
- Switch to the High-Wage Stream
- Increase the offered wage to meet or exceed the provincial or territorial median wage, allowing the job to qualify under the high-wage stream of the TFWP.
- Wait for the Next Quarterly Update
- Unemployment rates are reassessed every three months. Employers may wait to see if their CMA becomes eligible again in the January 2026 update.
- Hire in Exempted Occupations
- Some jobs are exempt from the low-wage LMIA freeze, including roles in:
- Agriculture
- Construction
- Food manufacturing
- Hospitals and nursing care facilities
- Certain in-home caregiver positions
- Some jobs are exempt from the low-wage LMIA freeze, including roles in:
Guidance for Foreign Workers
Foreign nationals seeking work under the low-wage stream should verify whether the job location falls within a restricted CMA before applying.
If a worker’s permit cannot be renewed due to a regional LMIA freeze, they must stop working immediately upon expiry. However, they may apply for a visitor record to legally remain in Canada while exploring other options.
Job seekers can also target eligible CMAs where low-wage LMIAs continue to be processed.
Next Update Scheduled for January 8, 2026
The federal government will issue its next LMIA eligibility update on January 8, 2026, based on the most recent national unemployment data.
Until then, the current freeze remains in effect, shaping the hiring landscape for low-wage positions across Canada.
Summary
- LMIA freeze expanded to 32 CMAs, up from 26.
- 6 new regions added: Guelph, Greater Sudbury, Winnipeg, Regina, Lethbridge, Red Deer, and Kelowna.
- Peterborough removed from the restricted list.
- Freeze applies October 10, 2025 – January 8, 2026.
- Policy affects low-wage LMIA stream only under the TFWP.
- Employers may switch to high-wage stream or wait for next review.
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