Canada’s Low-Wage LMIA Restrictions for January 2025: What You Need to Know

Starting January 2025, certain regions in Canada will no longer accept applications for low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP). This change affects employers and foreign workers alike, making it crucial to understand the new restrictions and how to navigate them.

Why the Change?
In August 2024, the federal government announced that low-wage LMIAs would not be processed in census metropolitan areas (CMAs) with unemployment rates of 6% or higher. Without an approved LMIA, employers cannot hire foreign workers under the TFWP, and existing TFWP workers cannot renew their work permits.

Regions Affected
As of January 10, 2025, 15 CMAs have been identified with unemployment rates above 6%:

• St. John’s, NL: 6%
• Saint John, NB: 6.1%
• Montréal, QC: 6.2%
• Oshawa, ON: 7.5%
• Toronto, ON: 7.9%
• Hamilton, ON: 6.3%
• St. Catharines-Niagara, ON: 6.2%
• Kitchener-Cambridge-Waterloo, ON: 7.3%
• Guelph, ON: 6.2%
• London, ON: 6.4%
• Windsor, ON: 8.8%
• Barrie, ON: 6%
• Regina, SK: 6.1%
• Calgary, AB: 7.5%
• Edmonton, AB: 6.8%

The list of CMAs will be reviewed and updated every three months, with the next update scheduled for April 2025.

Understanding CMAs
A census metropolitan area (CMA) is a region centered around a core population hub, with a total population of at least 100,000 and a core population of 50,000 or more. Municipalities within a CMA must show strong social and economic ties, often reflected in commuting patterns. Even if the population falls below these thresholds, the CMA status remains.

How to Check CMA Eligibility
To find out if your job is in a restricted CMA:

1. Enter the job’s postal code into Canada’s Census of Population website.
2. Check the “Census metropolitan area/Census agglomeration” field in the results.

What This Means for Employers and Workers
If you’re an employer in a restricted CMA, consider raising the offered wage to qualify for the TFWP’s high-wage stream. Employees should verify the unemployment rate for their location before applying and may need to explore other CMAs or wait for future updates.

Those already on a low-wage TFWP work permit whose status expires due to these restrictions must stop working. These workers can apply for a visitor record if they want to stay in Canada as a visitor.

Changes in CMA Unemployment Rates
Some CMAs previously on the list have dropped below the 6% unemployment threshold. These include:

• Trois-Rivières, QC: 5.2%
• Ottawa-Gatineau, ON/QC: 5.4%
• Kingston, ON: 5.7%
• Brantford, ON: 4.2%
• Winnipeg, MB: 5.6%
• Abbotsford-Mission, BC: 5.4%
• Vancouver, BC: 5.9%

Employers and workers in these areas may now proceed with LMIA applications.

Conclusion
Navigating these new restrictions requires staying informed about the unemployment rates and CMA lists updated by the government every quarter. Employers can consider adjusting wages to meet high-wage thresholds, while workers should carefully review their options to ensure compliance with these new regulations.