Canada Expands Work Permit Freeze to More Regions
Introduction
Canada has extended its freeze on certain work permit applications to more regions. As of October 9, 2026, six new areas have been added to the list, while the freeze has been lifted in Kamloops and Chilliwack.
The restriction applies to low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP). As a result, some employers in affected regions cannot hire new foreign workers or renew their work permits through this stream.
1. Which Regions Are Affected by the Work Permit Freeze?
The Canadian government has added six new regions to the existing list:
- Halifax
- Fredericton
- Kingston
- St. Catharines–Niagara
- Regina
- Lethbridge
Meanwhile, the freeze has been lifted in Kamloops and Chilliwack. However, the restrictions remain in place in 24 previously affected regions.
The government reviews these regions based on unemployment rates. Therefore, areas with an unemployment rate of 6% or higher may face restrictions on low-wage LMIA applications.
2. How Long Will the Freeze Remain in Place?
The updated restrictions apply from October 9, 2026, to January 7, 2027.
During this period, employers in affected regions generally cannot apply for low-wage LMIAs for jobs that pay less than 120% of the provincial or territorial median wage, unless an exemption applies.
The government has scheduled its next review of the affected regions for January 8, 2027. Consequently, the list may change depending on updated unemployment rates.
3. What Are the Wage Requirements?
The government has set different hourly wage thresholds for each province and territory. These thresholds help determine whether a job falls under the low-wage stream.
Here are some examples:
| Province | Hourly wage threshold |
|---|---|
| Alberta | $37.50 |
| British Columbia | $38.40 |
| Ontario | $36.92 |
| Quebec | $36.00 |
| Manitoba | $31.33 |
| Nova Scotia | $31.96 |
| Saskatchewan | $34.62 |
Other provinces and territories also have their own thresholds.
These amounts apply to LMIA applications received on or after July 17, 2026, according to the information provided. Therefore, employers should check the applicable wage threshold before submitting an application.
4. Are Any Jobs Exempt From the Freeze?
Yes. Certain industries are exempt from these restrictions because they provide essential services or meet specific labour needs.
The exemptions include jobs in:
- Primary agriculture
- Construction
- Food manufacturing
- Hospitals
- Nursing and residential care facilities
Additionally, private households hiring nurses, childcare providers, or personal support workers as in-home caregivers may qualify for an exemption.
Employers can also request case-specific exemptions for temporary and highly mobile jobs. For example, these may include workers needed for concerts, carnivals, or fairs.
However, employers should confirm that their positions meet the applicable exemption requirements before proceeding.
5. Why Did Canada Introduce These Restrictions?
The Canadian government introduced the freeze on September 26, 2024, to limit the processing of low-wage LMIAs in regions with higher unemployment.
The aim is to encourage employers to hire available Canadian citizens and permanent residents before relying on temporary foreign workers.
Furthermore, on November 8, 2024, the government increased the low-wage threshold from 100% to 120% of the provincial or territorial median wage.
As a result, more positions may fall under the low-wage category and become subject to these restrictions.
6. What Is an LMIA, and Why Is It Important?
A Labour Market Impact Assessment (LMIA) is an official document issued by Employment and Social Development Canada (ESDC).
It helps determine whether hiring a foreign worker is likely to have a positive or neutral effect on Canada’s labour market. In general, the employer must demonstrate that they could not find a suitable Canadian citizen or permanent resident for the position.
Once the employer receives a positive or neutral LMIA, the foreign worker can include it in their work permit application to Immigration, Refugees and Citizenship Canada (IRCC), where required.
Therefore, when an employer cannot obtain an LMIA because of the freeze, it may affect the worker’s ability to apply for or renew a work permit through the affected stream.
7. Can Workers Extend Their Work Permits While Waiting for an LMIA?
Yes, certain workers already in Canada may be eligible to submit their work permit extension applications while their LMIA is being processed.
Previously, the timeline for this concurrent processing arrangement was 30 days. However, on August 21, 2026, IRCC extended the timeline to 60 days.
This change may give eligible workers additional time to complete the required steps before their current permits expire.
8. What Is Maintained Status?
Maintained status allows eligible temporary residents to remain in Canada under certain conditions while IRCC processes their extension application.
For example, if a worker submits a valid work permit extension application before their current permit expires, they may continue working under the conditions of their previous permit while waiting for a decision.
However, the worker must remain in Canada and meet the applicable requirements.
It is important to remember that maintained status does not automatically guarantee approval of the new work permit.
Conclusion
Canada’s expanded work permit freeze may create additional challenges for employers and foreign workers in affected regions. However, exemptions remain available for certain industries, and eligible workers may still have options for extending their permits.
Therefore, employers should review the latest wage thresholds and regional restrictions before submitting an LMIA. Similarly, foreign workers should check their eligibility and extension requirements carefully to avoid unnecessary delays or interruptions to their employment.
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).
