The federal government has adjusted its approach to low-wage Labour Market Impact Assessment (LMIA) processing for the first quarter of 2026, following the release of updated unemployment data. As a result, several census metropolitan areas (CMAs) that were previously excluded from low-wage LMIA processing are once again eligible as of January 9, 2026.
These changes stem from the Temporary Foreign Worker Program (TFWP) rule that ties low-wage LMIA eligibility to local labour market conditions. Specifically, low-wage LMIA applications are only processed in CMAs where the unemployment rate is below 6%.
Policy Framework: Why Unemployment Rates Matter
Since mid-2024, Employment and Social Development Canada has used CMA unemployment rates as a gatekeeping mechanism for low-wage foreign worker hiring. Where unemployment reaches or exceeds 6%, applications under the low-wage stream are not processed, regardless of employer need.
The policy is designed to channel employers toward hiring workers already present in the local labour force and to limit reliance on lower-paid foreign labour in regions experiencing labour market slack.
Without an approved LMIA, foreign nationals cannot obtain or extend work permits under the low-wage stream of the TFWP.
Regions Regaining Eligibility in Q1 2026
Based on the most recent labour force data, the following CMAs have dropped below the 6% unemployment threshold and will once again accept low-wage LMIA applications:
- Halifax, Nova Scotia
- Moncton, New Brunswick
- Saint John, New Brunswick
- Fredericton, New Brunswick
- Kingston, Ontario
- Winnipeg, Manitoba
- Vancouver, British Columbia
These CMAs were excluded in late 2025 but are now accessible for applications submitted between January 9 and April 9, 2026.
Quebec Exception
Despite Montréal’s unemployment rate falling below 6%, low-wage LMIA processing remains suspended in Montréal and Laval. This is due to a separate provincial freeze imposed by Quebec, which is scheduled to remain in place until December 31, 2026.
CMAs Still Blocked From Low-Wage LMIA Processing
As of January 8, 2026, the following CMAs continue to exceed the unemployment threshold and remain ineligible for low-wage LMIA processing during the current quarter:
- St. John’s (NL)
- Ottawa–Gatineau (ON/QC)
- Belleville–Quinte West (ON)
- Oshawa (ON)
- Toronto (ON)
- Hamilton (ON)
- St. Catharines–Niagara (ON)
- Kitchener–Cambridge–Waterloo (ON)
- Brantford (ON)
- Guelph (ON)
- London (ON)
- Windsor (ON)
- Barrie (ON)
- Greater Sudbury (ON)
- Regina (SK)
- Lethbridge (AB)
- Calgary (AB)
- Red Deer (AB)
- Edmonton (AB)
- Kelowna (BC)
- Kamloops (BC)
- Chilliwack (BC)
- Abbotsford–Mission (BC)
- Nanaimo (BC)
Applications submitted for positions located in these CMAs will not be processed under the low-wage stream until at least the next quarterly update.
What Counts as “Low Wage” Under the TFWP
A position is categorized as low wage if the offered pay is below the applicable threshold for the region. This threshold is determined by reference to:
- 120% of the regional median wage, and
- Wages paid by the employer to comparable employees in the same role and location.
If the offered wage meets or exceeds the provincial high-wage threshold, the employer must apply under the high-wage stream, regardless of local unemployment conditions.
High-Wage Stream as a Workaround
Employers located in restricted CMAs may still hire foreign workers by increasing wages to meet high-wage thresholds. Current thresholds vary by province and territory and range from approximately $30/hour in Atlantic Canada to over $48/hour in the North.
Where the high-wage stream is used, the unemployment-based processing freeze does not apply.
Alternatively, employers may choose to delay recruitment until the next unemployment update, scheduled for April 10, 2026.
Implications for Foreign Workers
Foreign nationals affected by low-wage LMIA restrictions may consider several alternatives:
- Targeting occupations that remain exempt from the processing freeze, including agriculture, construction, food manufacturing, hospital-based roles, nursing and residential care, specific in-home caregiving positions, and qualifying short-term assignments.
- Focusing job searches on CMAs that continue to permit low-wage LMIA processing.
- Applying for visitor status if a work permit cannot be extended, noting that employment must cease once status expires.
In some circumstances, foreign workers changing employers may be authorized to begin working while a new application is under review, provided regulatory conditions are met.
Determining Whether a Job Location Is Affected
To confirm whether a job offer falls within a restricted CMA:
- Use the Census of Population geographic lookup tool.
- Enter the full postal code of the work location.
- Identify whether the location is classified as a CMA or a census agglomeration.
Only positions located in listed CMAs are subject to the low-wage processing suspension. Locations outside CMAs, or within census agglomerations, remain eligible.
Frequently Asked Questions
What changed on January 9, 2026?
As of January 9, 2026, the federal government resumed processing low-wage Labour Market Impact Assessment (LMIA) applications in several census metropolitan areas (CMAs) that were previously excluded. This change applies to applications submitted between January 9 and April 9, 2026.
Why does LMIA eligibility change by region?
Under the Temporary Foreign Worker Program (TFWP), low-wage LMIA processing is tied to local unemployment conditions. If a CMA’s unemployment rate reaches 6% or higher, Employment and Social Development Canada does not process low-wage LMIA applications for jobs located in that area.
This mechanism is intended to prioritize hiring from the local labour force in regions with higher unemployment.
Which regions are now eligible again?
The following CMAs dropped below the 6% unemployment threshold and are therefore eligible for low-wage LMIA processing in the first quarter of 2026:
- Halifax (NS)
- Moncton (NB)
- Saint John (NB)
- Fredericton (NB)
- Kingston (ON)
- Winnipeg (MB)
- Vancouver (BC)
These regions were ineligible in late 2025 but are accessible again for the current quarter.
Why is Montréal still excluded even though unemployment fell?
Montréal and Laval remain subject to a provincial suspension imposed by Quebec. This restriction operates independently of federal unemployment thresholds and remains in effect until December 31, 2026, regardless of labour market improvements.
Which regions are still blocked from low-wage LMIA processing?
Low-wage LMIA applications will not be processed for jobs located in CMAs where unemployment remains at or above 6%. This includes major centres such as Toronto, Calgary, Edmonton, Ottawa-Gatineau, and several mid-sized Ontario and British Columbia CMAs.
Applications tied to these locations will be refused for processing until unemployment figures change in a future quarterly update.
What is considered a “low-wage” position?
A job is treated as low wage if the offered pay is below the applicable threshold for the region. This threshold is assessed by comparing the wage offered to:
- 120% of the regional median wage; and
- Wages paid to comparable employees performing the same work at the same location.
If the offered wage meets or exceeds the applicable threshold, the position must be assessed under the high-wage stream instead.
Can employers still hire foreign workers in restricted regions?
Yes, in some cases. Employers located in CMAs subject to low-wage processing suspensions may still hire foreign workers if:
- The wage offered meets the high-wage stream threshold for the province or territory; or
- The position falls within an exempt occupation, such as primary agriculture, construction, certain healthcare roles, or qualifying short-term work.
Alternatively, employers may wait for the next quarterly unemployment update, expected on April 10, 2026.
What options do foreign workers have if their job is in a restricted CMA?
Foreign nationals may consider:
- Seeking employment in CMAs where low-wage LMIA processing remains available;
- Targeting occupations that are exempt from the suspension;
- Applying for a visitor record if their work permit cannot be extended, noting that employment must cease once status expires.
In some situations, workers changing employers may be eligible to begin working while a new application is under review, provided regulatory conditions are met.
How can I check whether a job location is affected?
To confirm whether a job offer falls within a restricted area:
- Enter the work location’s full postal code into the Census of Population geographic lookup tool.
- Identify whether the location is classified as a census metropolitan area (CMA) or a census agglomeration.
- If the location is a CMA, verify whether it is subject to the current low-wage LMIA processing suspension.
Jobs located outside CMAs, or within census agglomerations, are not affected by the CMA-based restriction.
When will this change again?
Unemployment rates are reassessed quarterly. The next update to the list of affected CMAs is expected on April 10, 2026.