Low-Wage LMIA Canada: New Processing Restrictions and Affected Regions (2026 Update)

Canada has updated its low wage LMIA processing restrictions, bringing important changes for employers and foreign workers across the country. Beginning July 10, 2026, some regions have once again become eligible for low-wage Labour Market Impact Assessment (LMIA) processing, while others have been added to the restriction list due to rising unemployment rates.

If you're planning to work in Canada through the Temporary Foreign Worker Program (TFWP) or you're an employer looking to hire international talent, understanding these low wage LMIA processing restrictions in Canada is essential. These updates can directly impact whether an employer can obtain an LMIA and whether a foreign worker can receive or extend a work permit.

Understanding Low Wage LMIA Processing Restrictions

A Labour Market Impact Assessment (LMIA) is a document that many Canadian employers must obtain before hiring a foreign worker under the Temporary Foreign Worker Program.

The LMIA demonstrates that the employer has made reasonable efforts to hire Canadian citizens or permanent residents and that hiring a foreign worker will not negatively affect Canada's labour market.

Under current federal policy, low wage LMIA processing restrictions apply in Census Metropolitan Areas (CMAs) where the unemployment rate is 6% or higher. In these regions, Employment and Social Development Canada (ESDC) generally does not process new low-wage LMIA applications unless the position qualifies for a specific exemption.

The government reviews unemployment rates every quarter, meaning the list of affected regions changes throughout the year.

What Changed in the 2026 Update?

Effective July 10, 2026, eight Canadian metropolitan areas became eligible once again for low-wage LMIA processing after their unemployment rates dropped below the 6% threshold.

These include:

• Halifax, Nova Scotia
• Saint John, New Brunswick
• Fredericton, New Brunswick
• Drummondville, Quebec
• Kingston, Ontario
• St. Catharines–Niagara, Ontario
• Winnipeg, Manitoba
• Regina, Saskatchewan

At the same time, four metropolitan areas became newly ineligible because unemployment increased above 6%:

• Saskatoon, Saskatchewan
• Red Deer, Alberta
• Kamloops, British Columbia
• Chilliwack, British Columbia

These changes remain in effect until the next scheduled quarterly review.

Regions Currently Affected by Low-Wage LMIA Processing Restrictions

As of the July 2026 update, low-wage LMIA applications are generally not processed in 26 Census Metropolitan Areas.

Some of the larger affected cities include:

• Toronto
• Montréal
• Ottawa-Gatineau
• Calgary
• Edmonton
• Vancouver
• Hamilton
• London
• Oshawa
• Windsor
• Saskatoon
• Kelowna
• Kamloops
• Chilliwack
• Abbotsford-Mission
• Nanaimo

Employers should always verify whether their job location falls inside a restricted CMA before submitting an LMIA application, as eligibility depends on the work location—not simply the province.

The federal government reviews this list every three months, with the next update scheduled for October.

Who Is Exempt From the Restrictions?

Although many employers are affected, several occupations and situations fall under low wage LMIA exemptions.

Examples include:

• Primary agriculture occupations
• Construction positions
• Food manufacturing jobs
• Hospital positions
• Nursing and residential care facilities
• Certain in-home caregiver positions
• Positions supporting permanent residence only (without a work permit application)
• Certain short-duration positions meeting government criteria

Meeting one of these exemptions may allow an LMIA application to proceed even if the work location is within a restricted CMA.

Because exemption eligibility depends on several factors, employers should carefully review current program requirements before applying.

What Employers Should Do

If your business plans to hire a foreign worker under the low-wage stream, it's important to evaluate the work location before beginning the application process.

Consider the following steps:

Confirm the Work Location

Verify whether the job is located inside a Census Metropolitan Area with an unemployment rate of 6% or higher.

Review Wage Levels

Some employers may determine that increasing the offered wage moves the position into the high-wage stream, which is subject to different program requirements and is not affected by these particular processing restrictions.

However, increasing wages alone does not guarantee approval, as employers must still satisfy all applicable LMIA requirements.

Determine Whether an Exemption Applies

Certain industries and occupations remain eligible despite regional restrictions.

Understanding whether your position qualifies could save valuable time during the hiring process.

How to Check Whether Your Job Offer Is Affected

The easiest way to determine whether your job falls within an impacted region is by identifying its Census Metropolitan Area.

You can do this by:

1. Finding the complete postal code for the work location.
2. Looking up the postal code using the Government of Canada's Census of Population tools.
3. Identifying the associated Census Metropolitan Area.
4. Checking whether that CMA currently has an unemployment rate of 6% or higher.

If the work location is outside a listed CMA or is located in a census agglomeration instead, the restriction generally does not apply.

Need Help With LMIA Processing Restrictions?

If your employer cannot obtain a low-wage LMIA because of the new regional processing restrictions, Foothills Immigration can review your individual circumstances and explain potential pathways that may fit your situation.

Depending on your eligibility, they may discuss options such as:

• High-wage LMIA eligibility
• LMIA-exempt work permits, where applicable
• Provincial Nominee Programs (PNPs)
• Permanent residence pathways
• Employer compliance guidance
• General immigration planning based on your goals