LMIA Processing to Restart in Multiple Canadian Regions in Early 2026

Federal government lifts low-wage LMIA pause in eight regions

The Government of Canada has confirmed that low-wage Labour Market Impact Assessment (LMIA) processing will resume in eight Canadian regions starting January 9, 2026, following improvements in local employment conditions.

Key cities where processing will restart include Vancouver, Winnipeg, Kingston, Halifax, and several Atlantic Canadian regions. These areas were previously restricted from low-wage LMIA processing due to higher unemployment rates.

Why LMIA processing is restarting

Under federal policy, low-wage LMIA applications are only processed in regions where the unemployment rate is below 6%. Recent labour market data shows that unemployment in these eight regions has fallen below that threshold, making employers once again eligible to apply under the low-wage stream of the Temporary Foreign Worker Program (TFWP).

Without an approved LMIA, most foreign nationals cannot apply for or extend a work permit under the TFWP, making this update especially important for employers and workers alike.

Regions now eligible for low-wage LMIA processing

As of January 9, 2026, the following regions are once again eligible after being removed from the restricted list:

• Halifax, Nova Scotia
• Moncton, New Brunswick
• Saint John, New Brunswick
• Fredericton, New Brunswick
• Montréal, Quebec
• Kingston, Ontario
• Winnipeg, Manitoba
• Vancouver, British Columbia

These regions were ineligible during the last quarter of 2025 but will now accept low-wage LMIA applications throughout the first quarter of 2026.

Regions that remain ineligible for low-wage LMIA applications

Despite the update, 24 census metropolitan areas (CMAs) remain ineligible for low-wage LMIA processing due to unemployment rates of 6% or higher. These include major labour markets such as Toronto, Calgary, Edmonton, Ottawa-Gatineau, and several Ontario and British Columbia regions.

Employers submitting LMIA applications for low-wage positions in these areas between January 9 and April 9, 2026, will have their applications refused for processing.

What qualifies as a low-wage position

A job is considered low-wage if the offered pay:

• Is below 120% of the median wage for the region, or
• Is lower than what the employer pays existing employees in the same role and location with comparable experience

If either threshold is not met, the job falls under the low-wage LMIA stream.

Certain occupations remain exempt from the processing freeze regardless of region, including roles in primary agriculture, construction, food manufacturing, frontline healthcare, and select caregiving positions.

Options for employers in restricted regions

Employers located in CMAs that remain ineligible have several alternatives:

• Increase the offered wage to meet the provincial high-wage LMIA threshold and apply under the high-wage stream
• Wait for the next quarterly update, scheduled for April 10, 2026, in case unemployment rates fall
• Hire workers in occupations that are exempt from the low-wage LMIA restrictions

High-wage LMIA thresholds vary by province and range from approximately $30 to $48 per hour, depending on location.

Guidance for foreign workers

Foreign nationals affected by the low-wage LMIA restrictions can:

• Focus job searches on eligible regions where processing is active
• Target exempt occupations not subject to the freeze
• Apply for a visitor record if their work permit cannot be extended
• Change employers if eligible and, in some cases, begin working while a new application is under processing

Workers must stop working immediately if their status expires and no extension is granted.

How to confirm if a job location is impacted

Eligibility depends on whether the job is located within a census metropolitan area (CMA). Jobs located in census agglomerations or non-CMA regions remain eligible for low-wage LMIA processing.

Employers and workers are strongly encouraged to verify the geographic classification of the work location before submitting an LMIA application.

For a consultation about Immigration options, reach out to the CAD IMMIGRATION today!