Low-Wage LMIA Freeze Expands to 6 New Canadian Regions

The professional immigration landscape in Canada continues to adjust to local economic realities. Since October 9, 2026, Employment and Social Development Canada (ESDC) has updated its ministerial instructions regarding the Temporary Foreign Worker Program (TFWP). This quarterly update expands the processing freeze on Labour Market Impact Assessment (LMIA) applications for the low-wage stream to additional Census Metropolitan Areas (CMAs).

What Changes

The rule established by the federal government is strict: Service Canada refuses to process any new LMIA application for a low-wage position located in a CMA where the unemployment rate is 6% or higher.

During the latest quarterly review, six new regions crossed this critical threshold and have been added to the list of areas where processing is suspended:

• Halifax (6.1%)
• Fredericton (6.2%)
• Kingston (6.3%)
• St. Catharines-Niagara (6.5%)
• Regina (6.7%)
• Lethbridge (6.0%)

Conversely, the employment situation has improved in two CMAs in British Columbia. Kamloops (3.6%) and Chilliwack (5.6%) have dropped back below the 6% mark. As a result, restrictions have been lifted there, and employers in these two cities can once again submit LMIA applications for low-wage positions.

Nationally, the situation remains heavily impacted by these restrictions: 30 of the country's 41 CMAs are currently subject to a processing refusal for this quarter.

Who Is Affected

This measure directly affects employers located in the 30 targeted CMAs who wish to hire new temporary foreign workers (TFWs) or renew the permits of those already employed, through the low-wage stream. Foreign nationals whose immigration plans or closed work permit extensions depend on a low-wage LMIA in these regions are also impacted.

However, the government has provided several exceptions. The refusal to process does not apply to applications falling under the following sectors and categories:

• Primary agriculture (as defined by the TFWP).
• Construction (NAICS code 23).
• Food manufacturing (NAICS code 311).
• Healthcare: including hospitals (NAICS 622) and nursing and residential care facilities (NAICS 623).
• In-home caregivers: for eligible home care occupations (with no mandatory live-in requirement).
• Exclusive support for permanent residence: LMIAs submitted solely to support a permanent residence application, without an associated work permit application.
• Very short duration positions: jobs of a truly temporary nature lasting approximately 120 calendar days or less, subject to written justification.

Key Dates and Figures

The new unemployment rates by CMA came into effect on October 9, 2026. These restrictions will apply to applications submitted up until January 7, 2027, at which point the next quarterly review (scheduled for January 8, 2027) will take effect.

To understand whether a position is considered "low-wage," one must refer to the wage threshold criterion. A position falls under this stream if the hourly wage offered is less than 120% of the provincial or territorial median hourly wage. Above this threshold, the position shifts to the "high-wage" stream, which is not subject to the 6% refusal rule.

Here is a comparative table of the current provincial hourly thresholds (representing 120% of the median wage) to determine whether a position is low or high wage:

Beyond wages, other key figures should be noted. For low-wage positions that do not qualify for exemptions, the maximum cap on temporary foreign workers per workplace remains limited to 10% of the total workforce (this cap is 20% for specific sectors like construction and food manufacturing). Furthermore, if an LMIA application is subject to an administrative processing refusal due to this measure, no processing fee (the usual $1,000 per position) is retained or charged by ESDC.

What to Do

For employers: Before starting any procedures, check the unemployment rate of your CMA and determine if your industry benefits from an exemption. If you are in a blocked zone and your sector is not exempt, evaluate the possibility of increasing the offered compensation to reach the high-wage stream threshold (120% of the provincial median wage), which would exempt you from this freeze. Note that the measure is not retroactive: LMIA applications submitted before October 9, 2026, will continue to be processed based on the CMA's status on the date they were received.

For temporary foreign workers: If you are already in Canada and your work permit is nearing expiration, it is crucial to act before it expires. A temporary worker who applies to renew or change their work permit before the expiration date benefits from maintained status. This means you can continue to work legally in Canada under the same conditions as your expired permit while waiting for a decision from Immigration, Refugees and Citizenship Canada (IRCC), provided you do not leave Canadian territory.