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Canada Expands Low-Wage LMIA Freeze to 30 Regions, Including Vancouver, Winnipeg and Halifax
Canada has expanded its restrictions on low-wage Labour Market Impact Assessment (LMIA) processing, with 30 Census Metropolitan Areas (CMAs) now affected as of April 10, 2026. This marks an increase from 24 regions in the previous quarter, reflecting shifting labour market conditions across the country.
Under this update, major urban centres such as Vancouver (6.5% unemployment), Winnipeg (6.0%), and Halifax (6.1%) have been added to the list of regions where low-wage LMIA applications under the Temporary Foreign Worker Program (TFWP) will not be processed. The current restrictions will remain in place until July 9, with the next review scheduled for July 10.
Key Changes: Regions Added and Removed
The federal government adjusts the LMIA processing list quarterly based on local unemployment rates. Regions with unemployment at or above 6% fall under the “refusal to process” rule for low-wage positions.
Regions removed from the freeze (now eligible):
- Lethbridge, Alberta: 7.2% → 5.9%
- Red Deer, Alberta: 8.9% → 5.9%
- Kamloops, British Columbia: 6.6% → 5.2%
- Chilliwack, British Columbia: 7.3% → 5.7%
Regions newly added to the freeze:
- Halifax, Nova Scotia: 5.2% → 6.1%
- Moncton, New Brunswick: 5.5% → 7.4%
- Saint John, New Brunswick: 5.8% → 6.0%
- Fredericton, New Brunswick: 5.2% → 6.5%
- Drummondville, Quebec: 5.6% → 7.3%
- Montréal, Quebec: 5.5% → 6.8%
- Kingston, Ontario: 5.6% → 6.2%
- Peterborough, Ontario: 5.3% → 6.3%
- Vancouver, British Columbia: 5.9% → 6.5%
- Winnipeg, Manitoba: 5.7% → 6.0%
Notably, Montréal continues to face additional restrictions due to Quebec’s separate moratorium on low-wage LMIA processing in Montréal and Laval, which remains in effect until December 31, 2026.
Full List Highlights: Rising Unemployment Across CMAs
Several CMAs reported significantly elevated unemployment rates in Q2 2026, including:
- London, Ontario: 9.3%
- Kitchener–Cambridge–Waterloo, Ontario: 9.1%
- Windsor, Ontario: 8.8%
- Barrie, Ontario: 8.8%
- Toronto, Ontario: 7.9%
Other affected regions include Ottawa-Gatineau, Hamilton, Calgary, Edmonton, Regina, Kelowna, Nanaimo, and Abbotsford-Mission.
What This Means for Employers
Employers must verify the unemployment rate of the CMA where the job is located before submitting a low-wage LMIA application.
- If the unemployment rate is 6% or higher, applications will not be processed unless exemptions apply.
- Employers may consider offering wages that meet high-wage stream thresholds to remain eligible.
Selected high-wage thresholds (CAD):
- British Columbia: $36.60
- Ontario: $36.00
- Alberta: $36.00
- Quebec: $34.62
- Manitoba: $30.16
- Saskatchewan: $33.60
Impact on Foreign Workers
For foreign nationals, the expanded freeze means fewer opportunities under the low-wage stream in major cities.
Applicants may consider:
- Waiting for the next quarterly update (July 10)
- Targeting regions with lower unemployment rates
- Exploring jobs in exempt sectors
Exemptions to the Freeze
Certain occupations remain exempt from the refusal-to-process policy, including:
- Primary agriculture
- Construction
- Food manufacturing
- Hospital and healthcare roles
- Nursing and residential care facilities
- In-home caregiving positions
- Short-term roles (120 days or less under specific conditions)
Additionally, employers in rural areas (outside CMAs) can now hire up to 15% of their workforce under the low-wage stream, offering increased opportunities outside major urban centres.
Policy Background
The LMIA processing restrictions were first introduced in August 2024 to align the Temporary Foreign Worker Program with local labour market conditions. The policy prioritizes employment opportunities for Canadian citizens and permanent residents in regions experiencing higher unemployment.
Without a positive or neutral LMIA, foreign nationals cannot apply for or renew work permits under the TFWP making these quarterly updates critical for both employers and job seekers.