Six More Regions Face Low-Wage LMIA Freeze Starting October 10

The federal government has announced the newest update to its quarterly list of Canadian regions where low-wage Labour Market Impact Assessments (LMIAs) will not be processed. This list now includes 32 census metropolitan areas (CMAs) across the country, up from 26 regions in the previous quarter.

Starting October 10, six more regions — Guelph, Greater Sudbury, Winnipeg, Regina, Lethbridge, and Kelowna — will join the freeze. Meanwhile, Peterborough, Ontario, will resume LMIA processing for low-wage positions.

The updated list will remain in effect until January 8, 2026, when the government plans to release its next quarterly review.

Why Certain Regions Face LMIA Freezes

LMIAs are required for employers to hire foreign workers under Canada’s Temporary Foreign Worker Program (TFWP). In August 2024, the federal government announced that it would stop processing low-wage LMIA applications in regions where unemployment rates reached 6% or higher.

The move aims to encourage employers to hire available local workers in areas with higher unemployment. It also reflects ongoing efforts to balance job opportunities for Canadians and temporary foreign workers.

Since then, the government has issued quarterly updates showing which CMAs have unemployment rates above the threshold.

Regions Added and Removed

The following regions were added to the list on October 10:

• Guelph, Ontario
  
• Greater Sudbury, Ontario
  
• Winnipeg, Manitoba
  
• Regina, Saskatchewan
  
• Lethbridge, Alberta
  
• Red Deer, Alberta
  
• Kelowna, British Columbia
  

The only region removed from the list this quarter is Peterborough, Ontario, where LMIA applications under the low-wage stream will now be processed.

Impact on Employers and Foreign Workers

Employers planning to hire foreign workers must first check if their location falls within a CMA affected by the freeze. If the unemployment rate in the area stands at 6% or higher, their low-wage LMIA applications will not be accepted.

To proceed, employers can either raise the offered wage to meet the high-wage stream requirements or wait until the next update in January 2026, in case unemployment rates drop below the threshold.

Foreign nationals seeking work under the low-wage stream can still apply for jobs in eligible regions where LMIA processing continues. They can also focus on sectors exempt from the freeze, such as:

• Agriculture
  
• Construction
  
• Food manufacturing
  
• Healthcare and caregiving
  
• Nursing and residential care facilities
  

If foreign workers already in Canada lose their work status due to the freeze, they must stop working. However, they can apply for a visitor record if they wish to remain in the country.

Checking a Region’s LMIA Eligibility

Employers and applicants can verify eligibility by entering the postal code of the job location in the Census of Population search tool. If the result lists a Census Metropolitan Area (CMA) included in the freeze, the LMIA will not be processed.

If the result shows a Census Agglomeration (CA) or no CMA listing, the application remains eligible.