Canada Reopens Low-wage LMIA Applications in Select Cities

January 10, 2026
CIC News Update
Canada, Work
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Canada Reopens Low-Wage LMIA Applications in Select Cities After Employment Recovery

Canada’s Temporary Foreign Worker Program (TFWP) is seeing a notable policy shift in early 2026, as the federal government confirms the resumption of low-wage LMIA processing in several previously restricted labour markets. The update, effective January 9, 2026, follows improved employment conditions in multiple regions across the country.

This development is expected to bring relief to employers facing labour shortages and foreign workers awaiting work permit renewals or new opportunities.

Also Read Low-Wage LMIA Processing to Restart in Canada

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What Triggered the Policy Change in 2026?

The decision is rooted in Canada’s unemployment-based LMIA control framework, which limits low-wage LMIA approvals in regions with weaker labour market conditions. Under this system, low-wage LMIA applications are paused in Census Metropolitan Areas (CMAs) where the unemployment rate reaches or exceeds 6%.

Recent labour market data shows that several major cities have now successfully moved below this threshold, prompting the government to lift the processing pause for the first quarter of 2026.

Cities Where Low-Wage LMIA Processing Has Restarted

As of Q1 2026, employers in the following CMAs can once again submit low-wage LMIA applications:

Vancouver, British Columbia
Winnipeg, Manitoba
Montréal, Quebec
Halifax, Nova Scotia
Kingston, Ontario
Fredericton, New Brunswick
Moncton, New Brunswick
Saint John, New Brunswick

These regions were ineligible during the final quarter of 2025 but have now requalified due to declining unemployment figures.

Understanding the Low-Wage LMIA Category

A job offer is classified under the low-wage LMIA stream when the hourly wage:

Falls below 120% of the local median wage, and
Does not exceed what the employer pays existing workers in the same role and location

Employers must secure a positive or neutral LMIA for foreign nationals to apply for or extend work permits under this stream.

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Regions Still Restricted From Low-Wage LMIA Processing

Despite the recent reopening, 24 CMAs across Canada remain ineligible for low-wage LMIA submissions until at least April 9, 2026. These include several high-population and industrial centres such as:

Toronto and surrounding Ontario cities
Ottawa–Gatineau
Calgary and Edmonton
Kitchener–Waterloo region
Parts of British Columbia’s Interior and Island regions

Applications tied to these locations will not be processed under the low-wage stream during this period.

Sectors That Remain Unaffected by the Pause

Even in restricted CMAs, Canada continues to accept LMIA applications for priority and essential occupations, including:

Agricultural and farming roles
Construction trades
Food production and processing jobs
Hospital-based positions
Long-term care and nursing facilities
Designated caregiver roles
Short-duration employment assignments

These exemptions are designed to safeguard critical industries and essential public services.

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Alternative Strategies for Employers

Employers located in restricted CMAs still have options to legally hire foreign workers in 2026.

Move to the High-Wage Stream

By offering wages that meet or exceed provincial wage benchmarks, employers can submit LMIA applications under the high-wage TFWP stream, which is not affected by unemployment-based restrictions.

Monitor Quarterly Updates

Unemployment figures are reassessed every three months, meaning eligibility may change as early as April 2026.

High-Wage LMIA Salary Benchmarks by Province

To qualify for the high-wage stream, employers must offer at least the following hourly wages:

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

Meeting these thresholds removes the job from the low-wage LMIA category.

What Foreign Workers Should Know in 2026

Foreign workers affected by LMIA processing pauses must remain cautious. If a work permit cannot be renewed due to LMIA restrictions, employment must stop immediately.

However, individuals may still:

Apply for a visitor record to stay in Canada legally
Search for LMIA-exempt roles
Change employers and begin work while a new application is under review, if eligible

Targeting eligible regions or exempt occupations significantly improves success chances.

How to Confirm LMIA Eligibility by Job Location

Foreign nationals and employers can verify eligibility by:

Searching the job’s postal code on the Census of Population platform
Identifying whether the location falls under a Census Metropolitan Area (CMA)
Checking the CMA against the latest ineligible list

Jobs located in Census Agglomerations or non-listed areas remain eligible for low-wage LMIA processing.

What This Signals for Canada’s Work Permit System

Canada’s decision to reopen low-wage LMIA processing in select cities reflects a data-driven approach to workforce planning. As labour conditions stabilize, the government is gradually rebalancing employer needs with domestic employment priorities.

For 2026, staying informed about quarterly LMIA updates, regional unemployment trends, and wage thresholds will be critical for anyone navigating Canada’s work permit landscape.

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