Canada Updates Low-Wage LMIA Rules
What is this update about?
Canada has updated unemployment rates for different cities and regions (CMAs).
These new rates will be used for low-wage LMIA applications from January 9, 2026 to April 9, 2026.
Simply put:
Whether an employer can hire a foreign worker under the low-wage TFWP now depends on the unemployment rate of their city.
Why does this matter for employers?
Because unemployment numbers directly decide if a low-wage LMIA will be processed or rejected.
- If the unemployment rate is high, the government prefers employers to hire Canadians or PRs first
- If it’s lower, employers get permission to hire foreign workers
So, these numbers can instantly affect hiring plans.
Why does this matter for foreign workers?
As a result, many entry-level and hourly jobs depend on low-wage LMIAs.
- If a region is restricted, job offers may get delayed or cancelled
- If a region becomes eligible, more job opportunities open up
Timing and location now matter more than ever.
What is a CMA (Census Metropolitan Area)?
A CMA is a large city area with nearby towns and suburbs where people usually live and work together.
For example:
- A main city + surrounding areas = one CMA
The government uses CMAs to apply same labour rules across a region, not city by city.
The important 6% unemployment rule (in simple terms)
Since September 2024, this rule applies:
If:
- A CMA’s unemployment rate is 6% or higher
- AND the job wage is below the provincial median wage
Then, low-wage LMIA applications are NOT processed in that CMA.
In short:
High unemployment = no low-wage LMIA approval
Current CMA unemployment rates (Jan–Apr 2026)
These unemployment rates apply to applications submitted between January 9 and April 9, 2026.
Some regions improved, while others remain restricted.
Because of this quarterly update, eligibility has changed again.
Good news: 17 regions are now eligible for low-wage LMIA
Due to lower unemployment, several CMAs dropped below 6%, making them eligible again.
Newly eligible (now below 6%)
These regions were restricted earlier but are now open:
- Halifax
- Moncton
- Saint John
- Fredericton
- Montréal
- Kingston
- Winnipeg
- Vancouver
This means employers here can again apply for low-wage LMIAs.
Regions that are still eligible (already below 6%)
These CMAs were eligible earlier and remain eligible:
- Québec
- Saguenay
- Sherbrooke
- Trois-Rivières
- Drummondville
- Peterborough
- Thunder Bay
- Saskatoon
- Victoria
Regions still restricted (6% or higher)
All CMAs with 6% or more unemployment remain blocked for low-wage LMIAs.
Notably, big cities like:
- Toronto
- Ottawa-Gatineau
- Calgary
- Edmonton
- Windsor
Employers in these areas cannot use the low-wage stream right now.
What employers should do now
If you plan to hire between Jan–Apr 2026, you should:
First, confirm:
- Your work location’s CMA
- Whether the wage is below or above the median wage
Then:
- File quickly if your CMA is newly eligible
- Keep recruitment proof ready (Canadian hiring efforts)
- If restricted, plan for April 2026 update or explore legal alternatives
What foreign workers should know
For workers:
- Job opportunities may increase in newly eligible regions
- Unemployment rates are checked at the time of LMIA submission
- Existing work permits are not automatically cancelled
This rule mainly affects new LMIA applications.
Proposed TFWP changes for 2026 (not final yet)
The government has discussed reforms, but these are still proposals.
Possible changes include:
- Sector-specific permits – switch employers within the same industry
- Structured wage deductions – for housing or transport
- Housing standard changes
- More flexibility in transport rules
- Clearer healthcare responsibility rules
- Faster and automated LMIA processing
These are not confirmed yet.
Reminder about recruitment rules
Even in 2026:
- Employers should assume normal advertising rules apply
- Keep records of efforts to hire Canadians and PRs
- This is especially important for agriculture LMIAs
Final takeaway
To sum it up:
- New unemployment rates apply until April 9, 2026
- 8 CMAs became newly eligible, reopening job opportunities
- Eligibility can change again in April 2026
- Planning around the quarterly cycle is crucial
Both employers and workers must stay updated to avoid delays or refusals.
Get in touch with SPS Global
Receive advice on any of your questions regarding Immigration Get in touch with us, experienced immigration consultants from SPS Global. For additional information, contact support@spscanada.com (Canada) or support.amd@spscanada.com (Ahmedabad), or by phone at (1) 905-362-9393 (Canada) or +919586226232 (Ahmedabad).
