22 Jan 2025

Low-Wage LMIAs: What You Need to Know About Ineligible Regions in Canada Starting January 2025

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If you're planning to apply for a Labour Market Impact Assessment (LMIA) under the low-wage stream of Canada’s Temporary Foreign Worker Program (TFWP), it’s essential to stay updated about regions where LMIAs will no longer be processed. As of January 2025, certain regions with high unemployment rates will be affected.

Key Update on Low-Wage LMIA Processing

The federal government has announced that LMIAs under the low-wage stream will not be processed in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. This policy ensures that job opportunities in these areas are prioritized for local workers.

List of Ineligible Regions (January 2025)

As of January 10, 2025, the following CMAs have unemployment rates at or above the 6% threshold:

CMA

Unemployment Rate

St. John's, Newfoundland

6.0%

Saint John, New Brunswick

6.1%

Montréal, Quebec

6.2%

Oshawa, Ontario

7.5%

Toronto, Ontario

7.9%

Hamilton, Ontario

6.3%

St. Catharines-Niagara, Ontario

6.2%

Kitchener-Cambridge-Waterloo, ON

7.3%

Guelph, Ontario

6.2%

London, Ontario

6.4%

Windsor, Ontario

8.8%

Barrie, Ontario

6.0%

Regina, Saskatchewan

6.1%

Calgary, Alberta

7.5%

Edmonton, Alberta

6.8%

This list will be updated every three months, with the next update scheduled for April 4, 2025.

How to Check Your Work Location's CMA

To determine if your job is in an ineligible CMA:

  1. Enter the work location’s postal code on the Census of Population website.
  2. Check the “Census metropolitan area/ Census agglomeration” section in the search results.


Understanding the Low-Wage Stream of the TFWP

The TFWP enables employers to hire foreign workers to address labor shortages in Canada. Whether an LMIA falls under the low-wage or high-wage stream depends on the wage offered:

  • Low-Wage Stream: For positions with wages below the provincial or territorial threshold.
  • High-Wage Stream: For positions with wages at or above the threshold.


As of November 2024, high-wage positions require pay that is 20% higher than the median wage or equivalent to what other employees in similar roles earn.

Options for Employers and Workers

If the job is in a CMA with an unemployment rate of 6% or higher:

  • Employers: Consider increasing the wage to qualify for the high-wage stream or wait for updated unemployment rates.
  • Workers: Focus job searches on eligible CMAs or discuss alternatives with your employer.


What Happens If Your LMIA Is Not Approved?

Workers with expiring permits under the low-wage stream in ineligible CMAs must stop working if their permit cannot be extended. They may apply for a visitor record to remain in Canada.

Previous CMAs No Longer Ineligible

Between October 11, 2024, and January 9, 2025, some CMAs had high unemployment rates but have since dropped below the 6% threshold. These include:

  • Trois-Rivières, Quebec (5.2%)
  • Ottawa-Gatineau, Ontario/Quebec (5.4%)
  • Vancouver, British Columbia (5.9%)


What Is a CMA?

A CMA is a region comprising one or more municipalities centered around a core population of at least 50,000, with a total population of at least 100,000. These areas are determined by economic and social connections, such as commuting patterns.

By staying informed about these updates, employers and workers can make strategic decisions about LMIA applications under the TFWP.

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