Canada Expands Low-Wage LMIA Freeze to More Labour Markets

Canada has expanded its restrictions on low-wage Labour Market Impact Assessment applications to six more labour markets across Atlantic Canada, Ontario, Saskatchewan, and Alberta.

The newly affected areas include Halifax, Fredericton, Kingston, St. Catharines-Niagara, Regina, and Lethbridge.

At the same time, the restrictions have been lifted for Kamloops and Chilliwack.

The updated rules apply from October 9, 2026 to January 7, 2027.

What Is the Low-Wage LMIA Freeze?

Under the current policy, most low-wage LMIA applications will not be processed in Census Metropolitan Areas where the unemployment rate is 6% or higher.

The restriction applies to non-exempt jobs paying less than 120% of the provincial or territorial median wage.

This means employers in affected regions may be unable to start a new low-wage LMIA application or support the renewal of a work permit through the Temporary Foreign Worker Program for certain jobs.

Six More Labour Markets Are Now Affected

The latest update adds the following regions to the list:

• Halifax
• Fredericton
• Kingston
• St. Catharines-Niagara
• Regina
• Lethbridge
  
  

These areas now meet or exceed the 6% unemployment threshold used by the federal government for the low-wage LMIA restriction.

Kamloops and Chilliwack Removed From the Freeze

The restrictions have been lifted for Kamloops and Chilliwack.

Employers in these areas may once again be able to submit low-wage LMIA applications, provided they meet all other program requirements.

CMAs Currently Affected by the Low-Wage LMIA Restriction

The freeze now applies to the following Census Metropolitan Areas:

• St. John’s
• Halifax
• Moncton
• Fredericton
• Montréal
• Ottawa-Gatineau
• Kingston
• Belleville-Quinte West
• Peterborough
• Oshawa
• Toronto
• Hamilton
• St. Catharines-Niagara
• Kitchener-Cambridge-Waterloo
• Brantford
• Guelph
• London
• Windsor
• Barrie
• Greater Sudbury
• Regina
• Saskatoon
• Lethbridge
• Calgary
• Red Deer
• Edmonton
• Kelowna
• Abbotsford-Mission
• Vancouver
• Nanaimo
  
  

The next update to the affected CMA list is scheduled for January 8, 2027.

Unemployment Rates in Affected Areas

The unemployment rate must be 6% or higher for the restriction to apply.

Some of the highest unemployment rates among affected CMAs include:

• Oshawa: 9.8%
• London: 9.1%
• Moncton: 8.1%
• Ottawa-Gatineau: 7.9%
• Windsor: 7.9%
• Edmonton: 7.6%
• Kitchener-Cambridge-Waterloo: 7.6%
• Abbotsford-Mission: 7.6%
• Toronto: 7.5%
• Guelph: 7.5%
  
  

Lethbridge is at exactly 6.0%, which is enough for the restriction to apply.

Low-Wage Thresholds by Province and Territory

The wage threshold used to determine whether a position falls under the low-wage stream is set at 120% of the provincial or territorial median wage.

Current hourly thresholds include:

• Alberta: $37.50
• British Columbia: $38.40
• Manitoba: $31.33
• New Brunswick: $31.73
• Newfoundland and Labrador: $33.60
• Northwest Territories: $48.00
• Nova Scotia: $31.96
• Nunavut: $45.00
• Ontario: $36.92
• Prince Edward Island: $31.20
• Quebec: $36.00
• Saskatchewan: $34.62
• Yukon: $45.60
  
  

These thresholds apply to LMIAs received on or after July 17, 2026.

Which Jobs Are Exempt From the Freeze?

Some sectors remain exempt from the low-wage LMIA restriction.

Exemptions are available for jobs in:

• Primary agriculture
• Construction
• Food manufacturing
• Hospitals
• Nursing and residential care facilities
  
  

There is also an exemption for private households hiring:

• Nurses
• Childcare providers
• Personal support workers working as in-home caregivers
  
  

Case-Specific Exemptions May Also Be Available

Employers can also request case-specific exemptions for certain temporary and highly mobile jobs.

This may include workers hired for:

• Concerts
• Carnivals
• Fairs
• Other short-term or highly mobile activities
  
  

These exemptions are considered on a case-by-case basis.

Why Canada Introduced These Restrictions

The federal government introduced the current low-wage LMIA moratorium in September 2024.

The policy is designed to limit the use of low-wage temporary foreign workers in regions where unemployment is already relatively high.

On November 8, 2024, the government also raised the low-wage threshold from the provincial or territorial median wage to 120% of the median.

This change increased the number of jobs considered low-wage under the Temporary Foreign Worker Program.

What Is an LMIA?

A Labour Market Impact Assessment is a document issued by Employment and Social Development Canada.

A positive or neutral LMIA generally confirms that an employer could not find a suitable Canadian citizen or permanent resident for the position.

The foreign worker then uses the LMIA to support a work permit application submitted to Immigration, Refugees and Citizenship Canada.

How the Freeze Can Affect Work Permit Renewals

The restriction can affect both new hires and some work permit renewals.

If an employer cannot obtain a new LMIA because the job is located in an affected CMA and does not qualify for an exemption, the foreign worker may not be able to renew their LMIA-based work permit through that position.

Employers and workers should therefore check the current CMA unemployment rate and the applicable wage threshold before planning an LMIA application.

Concurrent LMIA and Work Permit Processing

In some situations, workers in Canada with work permits close to expiry may be able to submit a work permit application while the LMIA is still being processed.

On August 21, 2026, IRCC extended the timeline for concurrent processing from 30 days to 60 days.

This gives some workers and employers more time to coordinate an LMIA application with a work permit extension.

Maintained Status for Workers in Canada

A worker who applies to extend their work permit before the current permit expires may benefit from maintained status.

Maintained status generally allows the worker to continue working under the same conditions as the expired permit while waiting for a decision, provided they remain in Canada and meet the applicable requirements.

This can be important for workers whose permits are expiring while an LMIA or work permit extension is still being processed.

What Employers Should Do

Employers planning to hire or retain temporary foreign workers should carefully review:

• The unemployment rate in their CMA
• Whether the position falls below the provincial or territorial low-wage threshold
• Whether the occupation or sector qualifies for an exemption
• Whether the worker’s current permit is close to expiry
• Whether concurrent processing may be available
  
  

Because the affected CMA list is reviewed regularly, eligibility can change from one quarter to the next.

Final Takeaway

Canada’s low-wage LMIA restrictions now cover six additional labour markets, including Halifax, Fredericton, Kingston, St. Catharines-Niagara, Regina, and Lethbridge.

Kamloops and Chilliwack are no longer subject to the freeze.

From October 9, 2026 to January 7, 2027, most low-wage LMIA applications in affected CMAs will not be processed if the local unemployment rate is 6% or higher, unless the job qualifies for an exemption.