Canada Reopens Low-Wage LMIA Processing in Eight Regions

Ottawa has resumed processing low-wage Labour Market Impact Assessment applications in eight Canadian regions, including Halifax, Winnipeg and Regina, after updated unemployment figures moved them below the federal cut-off.

The change took effect July 10 and will remain in place until at least October 9. During this period, low-wage LMIA applications will not be processed in 26 census metropolitan areas where unemployment is 6 per cent or higher.

Eight Regions Removed From Freeze

The federal government now allows low-wage LMIA processing in Halifax, Saint John, Fredericton, Drummondville, Kingston, St. Catharines-Niagara, Winnipeg and Regina.

Each region moved below the 6 per cent unemployment threshold. Halifax dropped from 6.1 per cent to 5.9 per cent. Saint John fell from 6.0 per cent to 5.9 per cent, while Fredericton declined from 6.5 per cent to 5.3 per cent.

Drummondville dropped from 7.3 per cent to 5.7 per cent. Kingston fell from 6.2 per cent to 5.3 per cent. St. Catharines-Niagara moved from 7.2 per cent to 5.8 per cent. Winnipeg declined from 6.0 per cent to 5.6 per cent, and Regina dropped from 6.4 per cent to 5.9 per cent.

Four Regions Added to Restricted List

Saskatoon, Red Deer, Kamloops and Chilliwack have now been added to the processing freeze.

Saskatoon’s unemployment rate rose from 5.5 per cent to 6.5 per cent. Red Deer increased from 5.9 per cent to 7.2 per cent. Kamloops rose from 5.2 per cent to 7.0 per cent, while Chilliwack climbed from 5.7 per cent to 7.9 per cent.

Low-wage LMIA applications will also remain frozen in areas such as Toronto, Montreal, Ottawa-Gatineau, Oshawa, Hamilton, London, Windsor, Calgary, Edmonton, Vancouver, Abbotsford-Mission and Nanaimo, among others.

Why the Rule Matters

Employers usually need a positive or neutral LMIA before a foreign worker can receive a work permit under the Temporary Foreign Worker Program. The low-wage stream faces extra restrictions in regions where unemployment is high.

Ottawa introduced the 6 per cent rule in August 2024. The goal was to better match the program with local labour needs and give Canadian citizens and permanent residents first access to available jobs.

The government updates the restricted CMA list every quarter. The next update is expected on October 10.

Some Jobs Remain Exempt

The freeze does not apply to every job. Exemptions include primary agriculture, construction, food manufacturing, hospital jobs, nursing and residential care positions, some in-home caregiver jobs, short-term jobs of 120 days or less that meet certain rules, and positions that only support permanent residence.

Workers and employers in affected regions should check the CMA tied to the job’s postal code. If the job is in a restricted CMA, they may consider raising the wage to meet the high-wage stream threshold, where possible.

From July 17 onward, high-wage thresholds include $37.50 in Alberta, $38.40 in British Columbia, $31.33 in Manitoba, $36.92 in Ontario, $36.00 in Quebec and $34.62 in Saskatchewan.

Workers who cannot extend a permit because of the update must stop working when their authorization expires. They may apply for visitor status to remain in Canada legally.