Low-Wage LMIA Processing to Restart in Canada
Canada to Restart Low-Wage LMIA Processing in Key Cities from January 2026
Canada has announced a major update to its Temporary Foreign Worker Program (TFWP), confirming that low-wage LMIA processing will resume in eight Canadian regions starting January 9, 2026. The decision comes after a quarterly review of regional unemployment data and marks an important shift for employers and foreign workers planning work permits in early 2026.
This change directly impacts major labour markets such as Vancouver, Winnipeg, Halifax, Kingston, and several Atlantic Canadian cities, where LMIA applications were previously paused.
Why Canada Paused Low-Wage LMIAs in 2025
In August 2024, the federal government introduced restrictions on processing low-wage Labour Market Impact Assessments (LMIAs) in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher. The policy aimed to prioritize job opportunities for local workers in regions experiencing higher unemployment.
Since then, the government has followed a quarterly review system, updating the list of CMAs where low-wage LMIA applications would either be accepted or refused for processing.
Eight Regions Cleared for LMIA Processing in Q1 2026
- Vancouver, British Columbia
- Winnipeg, Manitoba
- Halifax, Nova Scotia
- Kingston, Ontario
- Montréal, Quebec
- Moncton, New Brunswick
- Saint John, New Brunswick
- Fredericton, New Brunswick
Job offers from these cities were not eligible in late 2025 but are now cleared for LMIA processing until at least April 9, 2026.
What Counts as a Low-Wage LMIA in Canada?
- Is below 120% of the regional median wage,
- Falls below what the employer pays existing employees in the same role and location
A positive or neutral LMIA is mandatory for most foreign nationals applying for or extending a work permit under the low-wage stream of the TFWP.
Regions Still Barred from Low-Wage LMIA Processing
As of January 8, 2026, 24 CMAs remain ineligible for low-wage LMIA processing due to unemployment rates at or above 6%. These include major labour markets such as:
- Toronto
- Ottawa–Gatineau
- Calgary
- Edmonton
- Kitchener–Cambridge–Waterloo
- Hamilton
- Windsor
- Vancouver Island cities such as Nanaimo
- Multiple Ontario manufacturing and industrial hubs
Employers in these regions will not be able to submit low-wage LMIA applications until the next review period.
The next official update is scheduled for April 10, 2026.
Exceptions to the Low-Wage LMIA Freeze
- Primary agriculture
- Construction trades
- Food processing and manufacturing
- Hospitals and healthcare institutions
- Nursing and residential care facilities
- Select in-home caregiver roles
- Short-term positions (120 days or less) meeting special criteria
Options for Employers in Restricted Regions
1. Switch to the High-Wage Stream
By increasing the offered salary to meet or exceed provincial wage thresholds, employers can submit LMIA applications under the high-wage TFWP stream.
2. Wait for the Next Review
Unemployment rates are reassessed every three months, meaning some regions may become eligible again in the second quarter of 2026.
Sharp Decline in Temporary Resident Admissions
In a major policy shift, the federal government has announced plans to substantially reduce the number of temporary resident admissions beginning in 2026:
| Category | 2025 Target | 2026 Target | Change |
|---|---|---|---|
| Total Temporary Residents | 673,650 | 385,000 | ↓ 43% |
| International Students | 305,900 | 155,000 | ↓ 49% |
| Temporary Foreign Workers | 367,750 | 230,000 | ↓ 37% |
Provincial High-Wage LMIA Salary Thresholds (2026)
- Ontario: $36.00
- British Columbia: $36.60
- Alberta: $36.00
- Quebec: $34.62
- Manitoba: $30.16
- Nova Scotia: $30.00
- Saskatchewan: $33.60
- Yukon: $44.40
- Northwest Territories: $48.00
Guidance for Foreign Workers Affected by LMIA Limits
- Apply for a visitor record to remain legally in Canada
- Seek employment in LMIA-exempt occupations
- Change employers and begin working while a new application is in process, if eligibility conditions are met
How to Check If Your Job Location Is Impacted
- Visit the Census of Population website
- Enter the full postal code of the job location
- Identify whether the location is listed as a Census Metropolitan Area (CMA)
- Compare it with the latest ineligible CMA list
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What This Means for Canada’s Labour Market in 2026
The reopening of low-wage LMIA processing in key cities signals a gradual normalization of Canada’s temporary foreign worker system. While restrictions remain in high-unemployment regions, the policy continues to balance domestic employment priorities with genuine labour shortages.
For employers and foreign workers alike, staying updated on quarterly unemployment data will be critical for Canada work permits, LMIA applications, and workforce planning in 2026.
