On April 4, 2025, Canada introduced a game-changing update to its Labour Market Impact Assessment (LMIA) rules. This change, which will last until July 10, 2025, prohibits the processing of low-wage LMIA applications in certain Census Metropolitan Areas (CMAs) where unemployment rates hit 6% or higher.
Whether you’re an employer using the Temporary Foreign Worker Program (TFWP) or a foreign worker applying for a Canadian work permit, this news could have major implications for your plans. Let’s unpack the details of this shift, explore the list of affected areas, and discuss what it means for Canada’s labour market.
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What’s Changing with Low-Wage LMIAs in Canada?
The Labour Market Impact Assessment (LMIA) plays a vital role for Canadian employers hoping to hire foreign nationals through the Temporary Foreign Worker Program (TFWP). The LMIA process ensures that hiring foreign workers won’t negatively impact the job prospects of Canadian citizens or permanent residents.
As of September 2024, the Canadian government began tightening the rules around low-wage LMIAs. Specifically, if an urban area (a Census Metropolitan Area, or CMA) has an unemployment rate of 6% or higher, applications for low-wage workers under the TFWP are no longer accepted.
This change means that employers in these regions will be unable to hire foreign workers at lower wage levels, nor can they renew work permits for existing foreign workers under the low-wage stream.
The April 4, 2025 update marks the latest quarterly review, listing 24 CMAs where low-wage LMIA applications are temporarily on hold. This policy will be in place until July 11, 2025, when the government will review the unemployment rates once again.
Which CMAs Are Affected by the Low-Wage LMIA Freeze?
The new LMIA restrictions impact several CMAs across Canada, with unemployment rates ranging from 6.0% to 9.9%. These areas include major cities like Toronto, Vancouver, and Windsor, all of which are facing high unemployment in key industries.
Here’s a quick look at the regions where low-wage LMIAs are not being processed:
| CMA | Unemployment Rate (%) (April 4 – July 10, 2025) |
|---|---|
| Victoria, BC | 3.4% |
| Saguenay, QC | 4.1% |
| Halifax, NS | 4.8% |
| Thunder Bay, ON | 4.8% |
| Saskatoon, SK | 4.8% |
| Québec, QC | 5.1% |
| Sherbrooke, QC | 5.2% |
| Ottawa-Gatineau, ON/QC | 5.3% |
| Moncton, NB | 5.4% |
| London, ON | 5.5% |
| Trois-Rivières, QC | 5.6% |
| Belleville-Quinte West, ON | 5.6% |
| Lethbridge, AB | 5.7% |
| Greater Sudbury, ON | 5.8% |
| Winnipeg, MB | 5.9% |
| Regina, SK | 5.9% |
| Chilliwack, BC | 5.9% |
| Nanaimo, BC | 6.0% |
| Guelph, ON | 6.2% |
| Abbotsford-Mission, BC | 6.2% |
| Vancouver, BC | 6.6% |
| Montréal, QC | 6.7% |
| Kelowna, BC | 6.7% |
| Fredericton, NB | 6.9% |
| Kamloops, BC | 7.1% |
| Kingston, ON | 7.2% |
| Brantford, ON | 7.2% |
| Hamilton, ON | 7.3% |
| Edmonton, AB | 7.3% |
| Barrie, ON | 7.5% |
| St. John’s, NL | 7.6% |
| Saint John, NB | 7.7% |
| St. Catharines-Niagara, ON | 7.7% |
| Calgary, AB | 7.8% |
| Drummondville, QC | 8.0% |
| Oshawa, ON | 8.0% |
| Red Deer, AB | 8.4% |
| Kitchener-Cambridge-Waterloo, ON | 8.5% |
| Toronto, ON | 8.6% |
| Windsor, ON | 9.3% |
| Peterborough, ON | 9.9% |
Key Takeaways from the Data
- New Additions: Six CMAs (Fredericton, Drummondville, Red Deer, Kamloops, Chilliwack, and Nanaimo) have been added to the affected list, signaling rising unemployment in these areas.
- Notable Changes: The biggest jump occurred in Peterborough, Ontario, where the unemployment rate surged from 4.5% to 9.9%.
- Dropping Off the List: Regina and London, which previously had high unemployment, have now dropped below the 6% threshold, meaning low-wage LMIAs can again be processed there.
- Consistently High: Major urban centers like Toronto (8.6%) and Windsor (9.3%) continue to face high unemployment rates, which could hinder efforts to hire foreign workers under the low-wage stream.
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What Can Employers and Workers Do?
For employers in the affected regions, there are a few alternatives to navigate this challenge:
- Switch to the High-Wage Stream: Employers can increase the offered wage to meet the provincial median wage, which has been adjusted to 20% above the median since November 2024.
- Exempt Sectors: If the job falls under an exempt sector, such as healthcare, agriculture, or construction, the LMIA application may still be processed, even if the region is affected by the unemployment rate.
- Wait for the Next Update: If unemployment rates drop below 6% by July 11, 2025, low-wage LMIAs could be eligible for processing once again.
For foreign workers, the impact is clear:
- Job Search: Focus on areas with lower unemployment rates, such as Halifax (4.8%) or Victoria (3.4%), where LMIA applications are still eligible for processing.
- Permit Expiry: Foreign workers whose low-wage TFWP permits expire in affected regions may find themselves without work status. They can apply for a visitor record to stay in Canada, but they won’t be allowed to work unless they transition to a high-wage LMIA.
How to Check If Your Location Is Affected
Not sure if your job falls within an affected CMA? Here’s how to check:
- Get the Postal Code: Find the full postal code of your job location.
- Visit the Census Tool: Use Statistics Canada’s Census of Population tool.
- Search and Analyze: Enter the postal code, and check the “Census Metropolitan Area” section for the unemployment rate.
If the rate is 6% or higher, low-wage LMIA applications are not being processed in that area.
The Bigger Picture: Canada’s Labour Market in 2025
The LMIA changes reflect Canada’s broader labour market challenges in 2025. With rising inflation, post-pandemic recovery, and a housing crisis, the 6% unemployment threshold signals regions where jobs are scarce. While larger cities face labour shortages, rural areas with lower unemployment remain open for foreign workers.
Critics argue the policy may exacerbate urban-rural economic disparities, while supporters believe it will protect Canadian workers in struggling regions.
Your Next Steps: Employers and Workers
- For Employers: Review your worksite’s postal codes, consider raising wages to qualify for the high-wage stream, and explore sector-specific exemptions.
- For Workers: Focus on regions with lower unemployment rates, negotiate wage increases with employers, or consider other visa options.
What’s Coming Next?
This shift marks a major shift in Canada’s immigration and labour policies, and the next update in July 2025 could further shape the landscape for employers and foreign workers.