In a significant policy update, Employment and Social Development Canada (ESDC) has revised the list of regions ineligible for processing low-wage Labour Market Impact Assessment (LMIA) applications under the Temporary Foreign Worker Program (TFWP). Effective July 11, 2025, a total of 26 Census Metropolitan Areas (CMAs) across Canada are now restricted from applying or renewing work permits through the low-wage stream.
This change is part of the federal government’s ongoing efforts to align foreign worker hiring practices with the regional employment landscape.
Also Read Canada Tightens Rules on Low-Wage Foreign Worker Hiring in 26 Urban Regions
Why These Regions Are Affected
Under the current policy, ESDC no longer processes low-wage LMIA applications in CMAs with unemployment rates of 6% or higher. This threshold was introduced in 2024 to help prioritize employment opportunities for Canadians and permanent residents in regions facing economic challenges. The list of affected CMAs is updated every quarter, with the next update expected on October 10, 2025. The current update saw the number of ineligible CMAs rise from 24 to 26.
The Full List of Ineligible CMAs (As of July 11, 2025)
| CMA | Unemployment Rate (%) |
| Windsor, ON | 11.0 |
| Peterborough, ON | 9.9 |
| Oshawa, ON | 9.2 |
| Kamloops, BC | 8.7 |
| Toronto, ON | 8.9 |
| Edmonton, AB | 7.6 |
| Saint John, NB | 7.4 |
| Nanaimo, BC | 7.3 |
| Barrie, ON | 7.3 |
| Calgary, AB | 7.3 |
| Kingston, ON | 7.2 |
| St. John’s, NL | 7.2 |
| Belleville – Quinte West, ON | 7.1 |
| Montréal, QC | 6.9 |
| London, ON | 6.9 |
| Kitchener-Cambridge-Waterloo, ON | 6.9 |
| Brantford, ON | 6.8 |
| Hamilton, ON | 6.6 |
| Ottawa-Gatineau, ON/QC | 6.4 |
| Moncton, NB | 6.4 |
| St. Catharines-Niagara, ON | 6.4 |
| Vancouver, BC | 6.3 |
| Chilliwack, BC | 6.3 |
| Halifax, NS | 6.2 |
| Fredericton, NB | 6.2 |
| Abbotsford-Mission, BC | 6.1 |
Employers in these areas are currently not eligible to apply for or renew a low-wage LMIA until the next quarterly review.
Regions Removed from the List
Some regions previously restricted are now eligible to process low-wage LMIA applications again. These include:
- Drummondville, QC
- Guelph, ON
- Kelowna, BC
- Red Deer, AB
These changes reflect improved unemployment conditions in these CMAs, allowing employers to once again hire under the low-wage stream.
Understanding the Low-Wage Stream
A job offer is considered low-wage if the hourly wage offered is below the provincial or territorial median wage. ESDC recently updated these wage thresholds on July 27, 2025. If a worker’s pay is below this benchmark, the employer must apply through the low-wage stream. Salaries above the threshold fall under the high-wage stream, which remains unaffected by this policy.
Who Is Impacted and How to Check
This change affects both employers and foreign workers involved in the TFWP low-wage stream. If you’re unsure whether your job location falls within a restricted CMA:
- Use your job location’s postal code on the Census of Population website.
- Identify the associated Census Metropolitan Area (CMA).
- Check if that CMA is on the restricted list.
What Are the Options If You’re Affected?
If your job or job offer falls under the low-wage stream in a restricted CMA, you may consider the following alternatives:
- Ask your employer to increase the wage so that the job qualifies under the high-wage stream.
- Wait for the next quarterly update (October 10, 2025) to see if the CMA becomes eligible again.
- Search for opportunities in regions where low-wage LMIAs are still accepted.
- Apply for roles in sectors exempt from this measure, such as:
- Agriculture
- Construction
- Food manufacturing
- Health care (hospitals, nursing homes)
- In-home caregiving
- Agriculture
Maintained Status and Temporary Measures
Workers currently in Canada on a low-wage TFWP permit whose renewal is denied due to these restrictions must stop working once their permit expires. However, suppose they applied for an extension before the expiry. In that case, they may benefit from maintained status, allowing them to continue working until Immigration, Refugees and Citizenship Canada (IRCC) issues a decision. Moreover, under a temporary public policy introduced during COVID-19, workers on a closed work permit can request interim work authorization while waiting for a new employer-specific permit. This offers more flexibility to those who lose their jobs or seek new opportunities.
Final Thoughts
The latest update to Canada’s LMIA policy reinforces the government’s goal to align immigration pathways with domestic labour needs. Employers and foreign nationals should closely monitor CMA unemployment rates and ensure compliance with current eligibility rules when planning to apply under the TFWP.
With regular updates and shifting regional dynamics, staying informed is key to making successful employment and immigration decisions in Canada.
