Key Takeaways:
- The federal government will begin processing low-wage labour market impact assessments (LMIAs) in eight more regions across Canada starting January 9.
- Regions with an unemployment rate below 6% are eligible for low-wage LMIA processing.
- Certain occupations, such as primary agriculture and construction, are exempt from the freeze on low-wage LMIA processing.
- Employers and employees can check the unemployment rate of the Census Metropolitan Area (CMA) where the role is located to determine if the application will be processed.
- Foreign nationals can focus their job hunt on occupations that are exempt from the refusal to process measure or on CMAs where low-wage LMIAs are still being processed.
Introduction to Low-Wage LMIA Processing
The federal government has announced that it will begin processing low-wage labour market impact assessments (LMIAs) in eight more regions across Canada, starting January 9. This change affects regions that have seen their unemployment rate drop below 6%, including Vancouver, Winnipeg, and Kingston. The government only processes low-wage LMIAs in regions where the unemployment rate is 6% or higher. A job falls under the low-wage stream if the pay does not equal or exceed 120% of the median wage for that region, or fall within the range of what the employer pays current employees in that location with the same role and same experience, whichever is higher.
Eligible Regions for Low-Wage LMIA Processing
As of January 8, 2026, several regions have been removed from the list of CMAs with an unemployment rate over 6%. These regions include Halifax, NS, Moncton, NB, Saint John, NB, Fredericton, NB, Montréal, QC, Kingston, ON, Winnipeg, MB, and Vancouver, BC. Jobs offers from these regions were previously not eligible for low-wage LMIA processing in the last quarter of 2025, but they will now be eligible for low-wage LMIA processing in the first quarter of 2026. On the other hand, several regions have been added to the list of ineligible CMAs, including St. John’s, Newfoundland and Labrador, Ottawa-Gatineau, Ontario/Quebec, and Belleville – Quinte West, Ontario, among others.
Impact on Employers and Employees
The change in low-wage LMIA processing affects both employers and employees. Without a positive or neutral LMIA, a foreign national cannot apply for or renew a work permit under the Temporary Foreign Worker Program (TFWP). Employers who wish to hire a foreign worker under the low-wage stream of the TFWP and reside in a CMA with an unemployment rate of 6% or higher can increase the wage, so that the position falls under the high-wage stream of the TFWP. Alternatively, they can wait three months in case there is a change to the unemployment rates of the CMA in which the role is located. Foreign nationals can focus their job hunt on occupations that are exempt from this refusal to process measure, such as primary agriculture, construction, and select front-line healthcare occupations.
Options for Foreign Nationals
Foreign nationals who receive a job offer in one of the impacted regions can explore alternative options. They can focus their job hunt on CMAs where low-wage LMIAs are still being processed or on occupations that are exempt from the freeze. They can also apply for a visitor record to remain in Canada as a visitor if they lose status due to their work permit not being extended. Additionally, foreign nationals who get a job from another employer may be able to begin working at the new job while their application is being processed if they meet certain criteria.
Checking the Unemployment Rate of a CMA
To determine if a job offer is located in one of the impacted regions, individuals can visit the Census of Population website and enter the full postal code of the work location in the search bar. They can then check the "Census metropolitan area / Census agglomeration" result to see if the CMA is listed in the table of ineligible CMAs. If it is, the application will not be processed for the next three months. If the level isn’t listed, the application is still eligible. It is essential for both employers and employees to check the unemployment rate of the CMA where the role is located before submitting an application for an LMIA under the low-wage stream of the TFWP.
Conclusion
The change in low-wage LMIA processing affects various regions across Canada and has implications for employers and employees. It is crucial for individuals to understand the eligibility criteria and options available to them. By checking the unemployment rate of the CMA where the role is located and exploring alternative options, foreign nationals can navigate the complexities of the low-wage LMIA processing system. Employers can also take steps to increase the wage or wait for a change in the unemployment rates to hire foreign workers under the low-wage stream of the TFWP. As the government continues to update the list of ineligible CMAs, it is essential to stay informed about the latest developments and changes in the low-wage LMIA processing system.