New Limits on Hiring Low-Wage Foreign Workers in 26 Canadian Cities
Canada Tightens Rules on Low-Wage Foreign Worker Hiring in 26 Urban Regions
As of July 11, 2025, the Canadian government has imposed new hiring restrictions on employers seeking to hire foreign nationals under the low-wage stream of the Temporary Foreign Worker Program (TFWP). The latest policy update bars processing of low-wage Labour Market Impact Assessments (LMIAs) in 26 metropolitan regions, up from 24 in the previous quarter.
This move comes as part of Ottawa’s ongoing strategy to prioritize the domestic workforce in areas facing elevated joblessness.
What’s Changing and Why
Canada’s TFWP requires employers to apply for an LMIA before hiring foreign workers. Under recent reforms, low-wage LMIA applications are no longer accepted in metropolitan areas where the unemployment rate hits 6% or higher. The idea behind this rule is to ensure that local residents are considered first for jobs in struggling labour markets.
This updated list is issued quarterly, and the current changes will remain in effect until October 10, 2025, unless new data triggers another revision.
Metro Areas Now Ineligible for Low-Wage LMIA Applications
The following Census Metropolitan Areas (CMAs) now fall under the exclusion list due to jobless rates exceeding the 6% threshold:
- Windsor, ON – 11.0%
- Peterborough, ON – 9.9%
- Oshawa, ON – 9.2%
- Kamloops, BC – 8.7%
- Toronto, ON – 8.9%
- Edmonton, AB – 7.6%
- Saint John, NB – 7.4%
- Nanaimo, BC – 7.3%
- Calgary, AB – 7.3%
- Barrie, ON – 7.3%
- Kingston, ON – 7.2%
- St. John’s, NL – 7.2%
- Belleville – Quinte West, ON – 7.1%
- London, ON – 6.9%
- Montréal, QC – 6.9%
- Kitchener–Cambridge–Waterloo, ON – 6.9%
- Brantford, ON – 6.8%
- Hamilton, ON – 6.6%
- Ottawa–Gatineau, ON/QC – 6.4%
- St. Catharines–Niagara, ON – 6.4%
- Moncton, NB – 6.4%
- Halifax, NS – 6.2%
- Fredericton, NB – 6.2%
- Abbotsford–Mission, BC – 6.1%
- Vancouver, BC – 6.3%
- Chilliwack, BC – 6.3%
Employers in these regions are currently ineligible to submit or renew low-wage LMIA applications.
Regions That Re-Gained Eligibility
- Drummondville, QC
- Guelph, ON
- Kelowna, BC
- Red Deer, AB
Employers in these areas may now proceed with low-wage LMIA requests once again.
Metro Areas Now Ineligible for Low-Wage LMIA Applications
| Family Size | Minimum Required Funds (Annual) |
|---|---|
| 1 person (student only) | CAD $22,895 |
| 2 people | CAD $28,502 |
| 3 people | CAD $35,040 |
| 4 people | CAD $42,543 |
| 5 people | CAD $48,252 |
| 6 people | CAD $54,420 |
| 7 people | CAD $60,589 |
| Additional family member | CAD $6,170 |
These figures represent a significant increase from the earlier requirement of CAD $20,635 for a single applicant, which had been in effect since January 1, 2024.
What Defines a Low-Wage Position?
Wage thresholds vary by province and were most recently updated on July 27, 2025, by ESDC.
How Can Workers and Employers Identify Their Region’s Status?
- Use the postal code of the job offer.
- Look up the Census Metropolitan Area (CMA) using official Statistics Canada resources
- Cross-reference that CMA with the most recent exclusion list.
Your Options If You’re Impacted
For employers and workers caught in one of the excluded zones, all hope is not lost. Here are a few possible solutions:
- Negotiate higher wages so that the position qualifies under the high-wage stream.
- Wait for the next quarterly list in October—your region may drop below the 6% unemployment mark.
- Search for jobs in unaffected regions, where low-wage LMIA applications are still accepted.
- Shift focus to exempt sectors such as:
- Agriculture
- Food processing
- Construction
- Hospitals and long-term care
- In-home caregiving roles
Maintained Status and Temporary Work Flexibility
Foreign workers who submitted a renewal application before their permit expired may continue working under maintained status until a decision is made. Additionally, under a temporary public policy, workers on closed permits may request to switch employers without waiting for a new permit to be issued.
Conclusion
This quarterly update to Canada’s LMIA eligibility rules represents the federal government’s focus on preserving local jobs in areas facing economic strain. Both employers and foreign workers are advised to check regional unemployment figures and wage classifications carefully before submitting LMIA applications.
Regular monitoring of future updates is crucial for staying compliant and making informed decisions about hiring and job applications in Canada.
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