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Canada Stops Processing Low-Wage LMIA Applications in These 26 Regions – July 2025

Canada Stops Processing Low-Wage LMIA Applications in These 26 Regions – July 2025

The Canadian government has recently updated the list of Census Metropolitan Areas (CMAs) where employers and foreign workers cannot apply for or extend Labour Market Impact Assessments (LMIAs) under the low-wage stream of the Temporary Foreign Worker Program (TFWP). This change took effect on July 11, 2025, and will remain in place until the next quarterly update scheduled for October 10, 2025.

Which Regions Are Now Ineligible for Low-Wage LMIA Applications?

As of the latest update, 26 CMAs are now ineligible for low-wage LMIA processing. This is up from 24 regions listed in the previous quarter (April 4 to July 10, 2025).

The Employment and Social Development Canada (ESDC) will not process low-wage LMIA applications from these areas due to their high unemployment rates (6% or more).

Census metropolitan area (CMA)Unemployment rate
St. John’s, Newfoundland and Labrador7.2
Halifax, Nova Scotia6.2
Moncton, New Brunswick6.4
Saint John, New Brunswick7.4
Fredericton, New Brunswick6.2
Montréal, Quebec6.9
Ottawa-Gatineau, Ontario/Quebec6.4
Kingston, Ontario7.2
Belleville – Quinte West, Ontario7.1
Peterborough, Ontario9.9
Oshawa, Ontario9.2
Toronto, Ontario8.9
Hamilton, Ontario6.6
St. Catharines-Niagara, Ontario6.4
Kitchener-Cambridge-Waterloo, Ontario6.9
Brantford, Ontario6.8
London, Ontario6.9
Windsor, Ontario11
Barrie, Ontario7.3
Calgary, Alberta7.3
Edmonton, Alberta7.6
Kamloops, British Columbia8.7
Chilliwack, British Columbia6.3
Abbotsford-Mission, British Columbia6.1
Vancouver, British Columbia6.3
Nanaimo, British Columbia7.3

Why Are Certain Regions Excluded?

In 2024, the federal government introduced a new rule under the TFWP: low-wage LMIA applications will not be processed in CMAs with unemployment rates of 6% or higher. This policy aims to prioritize job opportunities for Canadians in areas with high unemployment.

To implement this, ESDC now publishes a revised list every three months based on current labour market data.

What Regions Are Now Off the Exclusion List?

These CMAs were previously ineligible between April 4 and July 10, but are now eligible again as of July 11:

  • Drummondville
  • Guelph
  • Kelowna
  • Red Deer

Employers in these regions can once again submit low-wage LMIA applications for the third quarter of 2025.

What Jobs Fall Under the Low-Wage LMIA Category?

A job is classified as low-wage if the wage offered is below the median wage set by ESDC for that province or territory. If the salary is equal to or above the threshold, it falls under the high-wage stream.

On July 27, 2025, ESDC updated the median wage thresholds. You can check the most recent figures by province on the official ESDC website.

How to Check if You’re Affected by These Changes

You may be affected if your job offer falls under the low-wage category and is located in one of the newly ineligible CMAs. To verify:

  1. Visit the Census of Population website.
  2. Enter the full postal code of your work location.
  3. Look for the section titled “Census metropolitan area / Census agglomeration.”
  4. Confirm if your CMA is listed among the 26 restricted regions.

What to Do If You’re Impacted

If your job offer is under the low-wage stream in a restricted CMA, you still have options:

  1. Request a wage increase from your employer so it qualifies for the high-wage stream.
  2. Wait for the next quarterly update to see if your CMA’s unemployment rate improves.
  3. Apply in a CMA where low-wage LMIA applications are still being accepted.
  4. Switch to an exempt occupation, such as:
    • Primary agriculture
    • Food manufacturing
    • Construction
    • Healthcare (e.g., hospitals, nursing care, in-home care)

Important Information for Workers on Low-Wage TFWP Permits

If you are currently in Canada on a low-wage TFWP work permit and your permit cannot be renewed, you must stop working once your status expires.

However, if you submitted an extension application before your permit expired, you may continue working under the same conditions until a decision is made by Immigration, Refugees and Citizenship Canada (IRCC). This is known as maintained status.

There’s also a temporary policy in place (originally introduced during COVID-19) that allows workers with closed work permits to switch employers or jobs before receiving a new permit. You must apply to IRCC for authorization.

If your status has expired, you may also apply for a visitor record to legally stay in Canada as a visitor.

Stay Informed and Plan Ahead

Due to frequent updates to CMA eligibility, both employers and foreign nationals are encouraged to regularly monitor ESDC announcements and check unemployment rates before submitting LMIA applications under the low-wage stream.

For detailed guidance and official updates, always refer to the Government of Canada’s official TFWP and ESDC websites. SWEC is one of the leading overseas education consultants dedicated to guiding students through every step of their journey to study abroad. With expert counselors and a strong track record, SWEC offers personalized support for university selection, application processing, visa guidance, and more. Whether you’re planning to pursue higher education in the USA, Canada, UK, Australia, or any other top destination, SWEC ensures a smooth and successful transition to your dream university. Trust SWEC — your reliable partner in turning global education dreams into reality.

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