24 CMA’s excluded from low-wage LMIA processing

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24 CMA’s excluded from low-wage LMIA processing

The Government of Canada has implemented new restrictions on processing low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP). As of April 4, 2025, 24 Census Metropolitan Areas (CMAs) across Canada have been excluded from low-wage LMIA processing due to local unemployment rates reaching or exceeding 6%.

These changes are part of an evolving policy aimed at ensuring Canadian workers are prioritized in regions experiencing higher unemployment. This report outlines the impacted regions, the rationale behind these restrictions, and the potential implications for employers, foreign workers, and broader labour market trends.

Low-wage LMIA applications are part of the TFWP, a federal initiative allowing employers to hire foreign nationals when qualified Canadian citizens or permanent residents are not available. However, in August 2024, the federal government introduced a policy shift to align the TFWP more closely with local labour market conditions. Under this policy low-wage LMIA applications will not be processed in CMAs where the unemployment rate is 6% or higher. The policy is reviewed and updated quarterly. The current list is in effect from April 4 to July 10, 2025.

This shift is intended to encourage the hiring of unemployed Canadian workers in regions where job opportunities are needed most.

A total of 24 CMAs have been deemed ineligible due to elevated unemployment rates. These include major cities across multiple provinces:

Name of CMA	Unemployment rate
St. John’s	7.6%
Saint John, Fredericton	7.7%, 6.9%
Drummondville, Montréal	8.0%, 6.7%
Kingston, Peterborough, Oshawa, Toronto, Hamilton, St. Catharines-Niagara, Kitchener-Cambridge-Waterloo, Brantford, Guelph, Windsor, Barrie	Ranging from 6.2% to 9.9%
Calgary, Red Deer, Edmonton	7.8%, 8.4%, 7.3%
Kelowna, Kamloops, Abbotsford-Mission, Vancouver, Nanaimo	Ranging from 6.0% to 7.1%

Two CMAs were previously ineligible but have now been removed due to improved unemployment figures:

Regina, Saskatchewan – 5.9%
London, Ontario – 5.5%

These regions are once again eligible for low-wage LMIA applications for this quarter.

Employers located in affected CMAs are currently unable to apply for low-wage LMIAs. Businesses in need of foreign labour must either:

Increase the offered wage to qualify under the high-wage stream; or
Wait for potential changes in the unemployment rate in the next quarterly review.

Those looking to hire foreign nationals are advised to regularly consult updated CMA unemployment data before submitting LMIA applications.

Applicants seeking low-wage positions in affected CMAs may face delays or rejections if the location is ineligible. Foreign workers already in Canada on low-wage TFWP permits in these CMAs may not be able to renew their permits. Workers losing their employment status must stop working immediately, but may apply for a visitor record to remain in Canada lawfully.

How to determine CMA status

To check whether a job’s location falls within a CMA:

Input the postal code into the Census of Population tool.
Review the result under "Census metropolitan area / Census agglomeration":
If the location is a CMA listed above, low-wage LMIA applications will not be accepted.
Applications are still eligible if the location is not a CMA or census agglomeration.

Looking forward

The current list of ineligible CMAs for low-wage LMIA processing underlines the government’s intent to balance immigration and local employment priorities. These restrictions will continue to influence hiring practices, worker mobility, and economic strategies in the short and medium term. A data-informed, region-specific approach to labour market regulation is becoming the norm, and both businesses and applicants must remain agile to adapt to quarterly policy changes.

If you are looking to Study, Work, Visit or Migrate to Canada, talk to I Can Help Immigration Services, at +1 778 239 7861 or +1 647 453 7660 with RCIC # R413239, Canada’s No.1 Immigration & Visa Company to get the best help you need.

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