Canada expands LMIA processing freeze to 30 regions
The federal government has broadened restrictions on low-wage Labour Market Impact Assessment (LMIA) applications, with new measures taking effect April 10.
Under the update, applications in 30 census metropolitan areas (CMAs) will not be processed for the second quarter of 2026, an increase from 24 regions in the previous quarter.
The changes affect major urban centres including Vancouver, Winnipeg, and Halifax, where unemployment rates now meet or exceed the federal threshold.
- Low-wage LMIA processing suspended in 30 CMAs from April 10 to July 9
- List expanded from 24 regions in the previous quarter
- Vancouver, Winnipeg, Halifax among newly affected cities
- Processing resumes in select regions where unemployment declined
- Policy tied to a 6% unemployment rate threshold
Updated federal policy on low-wage LMIA applications
The LMIA system is a central component of Canada’s Temporary Foreign Worker Program (TFWP), which permits employers to hire foreign nationals when local labour shortages are identified.
Since August 2024, Ottawa has applied a rule preventing the processing of low-wage LMIAs in CMAs where the unemployment rate is at or above 6%.
The government updates the list of affected regions every quarter using current labour market data, with the latest revision covering the period from April 10 to July 9, 2026.
Regions newly excluded from processing
Several CMAs were added to the suspension list after recording higher unemployment rates in recent data releases.
These include Halifax, Moncton, Saint John, Fredericton, Drummondville, Montréal, Kingston, Peterborough, Vancouver, and Winnipeg.
In Manitoba, Winnipeg’s unemployment rate rose to 6.0%, placing it above the eligibility threshold for continued processing under the low-wage stream.
Montréal remains subject to additional provincial restrictions, as a separate moratorium on low-wage LMIA applications in Montréal and Laval is in effect until the end of 2026.
Regions removed from the restriction list
Some cities have been removed from the suspension after their unemployment rates declined below the 6% benchmark.
These include Lethbridge and Red Deer in Alberta, as well as Kamloops and Chilliwack in British Columbia.
Applications for low-wage positions in these areas are again being processed during the current quarter.
Full list of affected metropolitan areas
The updated list includes 30 CMAs across multiple provinces, spanning Atlantic Canada, Quebec, Ontario, the Prairies, and British Columbia.
Among the largest urban centres impacted are Toronto, Montréal, Vancouver, Calgary, Edmonton, and Ottawa-Gatineau.
Other included regions range from mid-sized cities such as London, Windsor, and Kitchener-Cambridge-Waterloo to smaller centres including Nanaimo, Regina, and St. John’s.
All listed regions currently report unemployment rates at or above 6%, based on quarterly labour force data used by the federal government.
Program structure and eligibility criteria
The TFWP divides positions into two categories based on wage levels: high-wage and low-wage streams.
The classification depends on whether the offered wage meets or exceeds a provincial or territorial threshold established by Employment and Social Development Canada.
If a job falls under the low-wage category and is located within a CMA that meets the unemployment threshold, LMIA applications are not processed unless exemptions apply.
Certain sectors remain exempt from the processing suspension, including primary agriculture, healthcare roles, and some construction and food manufacturing positions tied to essential services.
Quarterly updates and labour market alignment
The LMIA processing restrictions are designed to align federal immigration programs with local labour market conditions.
By pausing approvals in regions with elevated unemployment, the policy prioritizes job opportunities for Canadian citizens and permanent residents.
The quarterly updates provide a recurring mechanism to adjust eligibility based on shifting employment trends across Canada’s metropolitan areas.
Changes are scheduled again for July 10, when a new list of CMAs and updated unemployment figures will be released.
Relevance for Manitoba and provincial pathways
Winnipeg’s inclusion in the current suspension list highlights changing labour conditions within Manitoba’s largest urban centre.
Provincial immigration pathways, including the Manitoba Provincial Nominee Program, operate separately from LMIA-based streams but remain part of the broader immigration system.
Additional information on provincial selection criteria is available through tools such as the Manitoba PNP points calculator, which outlines eligibility factors under that program.
Broader context of LMIA requirements
An approved LMIA is typically required before a foreign national can apply for a work permit under the TFWP.
The assessment verifies that hiring a foreign worker will not negatively affect Canada’s labour market.
Without a positive or neutral LMIA decision, work permit applications linked to the TFWP cannot proceed.
Next update expected in July
The current processing restrictions remain in place until July 9, 2026, after which the federal government will publish its next quarterly adjustment.
Future updates will continue to reflect regional unemployment data and labour force trends across Canada.
Further developments related to federal and provincial immigration programs are expected as labour market conditions evolve.