Low-wage LMIA rules updated for several Canadian cities
Canada began processing low-wage Labour Market Impact Assessment (LMIA) applications in eight urban regions on July 10, 2026, following updated unemployment data. The change affects census metropolitan areas (CMAs) including Winnipeg, Halifax, and Regina.
The adjustment reflects the federal government’s quarterly review of labour market conditions. Eligibility for LMIA processing in the low-wage stream is tied to whether a region’s unemployment rate falls below 6%.
The update directly impacts employers seeking to hire temporary foreign workers under the Temporary Foreign Worker Program (TFWP), as well as foreign nationals whose work permits depend on LMIA approvals.
- Low-wage LMIA processing resumed in eight CMAs as of July 10, 2026
- Eligibility is based on unemployment rates below the 6% threshold
- Winnipeg, Halifax, and Regina are among regions re-approved for processing
- 26 CMAs remain ineligible until at least October 9, 2026
- The next quarterly update is scheduled for October 10, 2026
Regions returning to LMIA eligibility
Eight CMAs became eligible for low-wage LMIA processing after their unemployment rates dropped below 6% in the latest labour market update. These regions span multiple provinces, including Atlantic Canada, Ontario, Manitoba, Saskatchewan, and Quebec.
Winnipeg recorded a decline in unemployment from 6.0% to 5.6%, while Regina saw a reduction from 6.4% to 5.9%. Halifax also moved below the threshold, falling to 5.9% from 6.1%.
Other CMAs returning to eligibility include Saint John and Fredericton in New Brunswick, Drummondville in Quebec, Kingston in Ontario, and St. Catharines–Niagara in Ontario.
Regions newly subject to processing restrictions
At the same time, four CMAs lost eligibility after unemployment rates rose above the threshold. Saskatoon increased from 5.5% to 6.5%, while Red Deer climbed to 7.2%.
Kamloops and Chilliwack in British Columbia also moved above the 6% mark, with unemployment reaching 7.0% and 7.9%, respectively. These CMAs are now included in the list of regions where low-wage LMIA applications will not be processed.
Overview of current restrictions
From July 10 to October 9, 2026, low-wage LMIA applications are not processed in 26 CMAs nationwide. This represents a slight decrease compared to the previous quarter, when 30 CMAs were ineligible.
Major metropolitan areas remain on the restricted list, including Toronto, Montreal, Vancouver, Calgary, and Ottawa–Gatineau. Many of these regions report unemployment rates well above 6%, including Oshawa at 8.5% and Kitchener–Cambridge–Waterloo at 8.1%.
The restriction applies specifically to the low-wage stream of the TFWP. Positions that meet or exceed provincial wage thresholds fall under the high-wage stream and are not subject to these regional processing limits.
How the LMIA system operates
An LMIA is a required assessment that employers must obtain before hiring a foreign national through the TFWP. A positive or neutral LMIA confirms there is a need for a foreign worker and that no Canadian citizens or permanent residents are available to fill the role.
This requirement applies to both new work permits and extensions. Without a valid LMIA, most foreign workers cannot receive authorization to work under the program.
The federal government uses unemployment data to align LMIA processing with labour market conditions. Regions with higher unemployment are subject to stricter controls to prioritize local hiring.
Policy background and quarterly updates
The current framework for restricting LMIA processing was introduced in August 2024. At that time, the government announced that low-wage LMIA applications would not be processed in CMAs with unemployment rates at or above 6%.
This measure was part of broader efforts to adjust the TFWP in response to shifting economic conditions. The policy aims to ensure that job opportunities are first available to Canadian residents in areas experiencing higher unemployment.
Unemployment rates are reviewed every quarter, and the list of affected CMAs is updated accordingly. Each update determines where LMIA applications can be processed for the following three-month period.
The next scheduled update is set for October 10, 2026, when new eligibility determinations will be announced.
Exemptions within the low-wage stream
Despite the restrictions, certain occupations remain exempt from the refusal-to-process measure. These include roles in primary agriculture, construction, and food manufacturing.
Healthcare-related positions, such as hospital roles and those in nursing and residential care facilities, are also exempt. In addition, some in-home caregiver roles fall outside the restriction.
Applications linked solely to permanent residence pathways, as well as short-duration positions of 120 days or less that meet specific criteria, are not subject to the same limitations.
Regional implications, including Manitoba
Manitoba is among the provinces affected by the July update, with Winnipeg returning to eligibility for low-wage LMIA processing. This change reflects improved labour market conditions within the province’s largest CMA.
Provincial immigration pathways, such as the Manitoba Provincial Nominee Program (MPNP), operate independently of LMIA processing rules but are also influenced by labour market conditions.
Changes to LMIA eligibility can affect employer participation in the TFWP, which in turn interacts with broader immigration and labour strategies across provinces.
Wage thresholds and classification
The distinction between low-wage and high-wage LMIA applications is determined by provincial or territorial wage thresholds. Positions below the set hourly rate fall under the low-wage stream, while those meeting or exceeding it are classified as high-wage roles.
These thresholds are updated periodically and vary across jurisdictions. For example, Manitoba’s threshold increased from $30.16 to $31.33 in mid-July 2026.
This classification determines not only eligibility for certain LMIA streams but also whether regional unemployment restrictions apply.
Ongoing monitoring of labour market conditions
The federal government continues to assess labour market conditions across Canada using data from Statistics Canada. Census metropolitan areas are a key geographic unit in this analysis.
Each CMA’s unemployment rate plays a central role in determining LMIA processing eligibility. Regions with rates below 6% remain open to low-wage applications, while those above the threshold face temporary restrictions.
The quarterly update cycle ensures that changes in employment conditions are reflected regularly in immigration and labour policies.
The July 10 update reduced the number of restricted CMAs to 26 and reinstated processing in eight regions, including Winnipeg, where the unemployment rate declined to 5.6%.
Further details on draws, regional programs, and evolving immigration policies are available through Canada’s broader immigration reporting and data tools.