The Regions in Which Low-Wage LMIAs Won’t Be Processed, as of July 11
As of July 11, 2025, the Canadian government has expanded its list of regions where low-wage Labour Market Impact Assessments (LMIAs) will no longer be processed. This change is part of a broader strategy to tackle high unemployment rates in specific areas by prioritizing job opportunities for Canadian citizens and permanent residents.
Background on the Policy
The federal government reviews the list of affected Census Metropolitan Areas (CMAs) every quarter. If a CMA has an unemployment rate of 6% or higher, Service Canada stops processing low-wage LMIA applications for that region. This means employers in these areas cannot hire foreign workers through the low-wage stream of the Temporary Foreign Worker Program (TFWP) or renew work permits for existing TFWP workers. The goal is to encourage local hiring in regions where unemployment is already a challenge.
Recent Developments in the Policy
Initially, the suspension of low-wage LMIA processing took effect on April 4, 2025, impacting 24 CMAs. However, as of July 11, 2025, the number of affected regions has grown due to persistently high unemployment rates in more areas. This reflects the dynamic nature of Canada’s labor market and the government’s commitment to adapting policies based on economic conditions.
Some of the newly affected CMAs include major urban centers like Montréal, where the unemployment rate stands at 6.7%, as well as smaller cities such as St. John’s, Newfoundland and Labrador (7.6%), Saint John, New Brunswick (7.7%), and Peterborough, Ontario (9.9%). These regions now face restrictions on hiring low-wage foreign workers under the TFWP.
Implications for Employers and Foreign Workers
Employers in these regions are now unable to hire new low-wage foreign workers or renew work permits for this category until Service Canada reassesses the status of their region. For foreign workers already in Canada, this policy reduces opportunities for employment in low-wage positions within these affected areas.
It’s important to note that this suspension is not permanent. Regions can be removed from the restricted list once their unemployment rates fall below the 6% threshold. This creates an incentive for local economies to recover and for employers to focus on hiring domestically.
The suspension is set to remain in effect until at least July 10, 2025, but it could be extended or adjusted in future updates. Employers and foreign workers are encouraged to stay informed about these changes and monitor regional unemployment rates closely.
For streams not affected by this suspension, LMIA processing times vary significantly. For example, the Low-Wage Stream currently has an average processing time of about 50 business days, according to May 2025 data.
This policy underscores the Canadian government’s efforts to balance the needs of the labor market with its commitment to reducing domestic unemployment. By limiting low-wage LMIA processing in high-unemployment areas, the government aims to create more job opportunities for Canadian citizens and permanent residents.
As the situation continues to evolve, both employers and foreign workers are advised to stay updated on government announcements and adjust their hiring and employment plans accordingly.
Understanding the Impact of the LMIA Suspension
Processing Times for Unaffected Streams
While the suspension of low-wage LMIA processing in high-unemployment regions continues, other streams under the Temporary Foreign Worker Program (TFWP) remain unaffected. As of May 2025, the processing time for the Low-Wage Stream averages about 50 business days. This variability in processing times highlights the complexity of Canada’s labor market and the need for employers to plan accordingly.
A Closer Look at Affected Regions
Regions affected by the suspension include a mix of large urban centers and smaller cities, each facing unique economic challenges. For instance, Montréal, with an unemployment rate of 6.7%, reflects broader economic conditions in Québec. Similarly, St. John’s, Newfoundland and Labrador, with a rate of 7.6%, and Saint John, New Brunswick, at 7.7%, demonstrate the struggles of Atlantic Canada’s labor market. Peterborough, Ontario, with a higher unemployment rate of 9.9%, illustrates the challenges faced by smaller urban areas in Central Canada.
Policy Flexibility and Future Adjustments
The suspension of low-wage LMIA processing is not a permanent measure. The federal government has designed the policy to be flexible, with regions eligible for removal from the restricted list once their unemployment rates fall below the 6% threshold. This dynamic approach allows the government to respond to changing economic conditions and labor market needs.
Encouraging Domestic Hiring
By restricting low-wage LMIA applications in high-unemployment areas, the government aims to incentivize employers to prioritize hiring Canadian citizens and permanent residents. This policy is part of a broader strategy to address unemployment and ensure that job opportunities are available to those already living in these regions.
Stay Informed About Policy Updates
Employers and foreign workers are encouraged to monitor regional unemployment rates and government announcements closely. The suspension is currently set to remain in effect until at least July 10, 2025, but it could be extended or adjusted in future updates. Staying informed will help stakeholders navigate the evolving labor market landscape and make informed decisions about hiring and employment plans.
Balancing Labor Market Needs
The Canadian government’s approach to managing the Temporary Foreign Worker Program reflects its commitment to balancing the needs of employers with the broader goal of reducing domestic unemployment. By limiting low-wage LMIA processing in areas with high unemployment, the government aims to create more opportunities for Canadian workers while ensuring that employers in other regions can still access the talent they need.
Conclusion
The suspension of low-wage LMIA processing in high-unemployment regions is a strategic move by the Canadian government to address domestic unemployment while balancing the needs of the labor market. As of July 11, 2025, regions like Montréal, St. John’s, Saint John, and Peterborough face restrictions on hiring low-wage foreign workers. This policy incentivizes employers to prioritize local hiring and creates opportunities for Canadian citizens and permanent residents.
The policy is flexible, with regions eligible for removal from the restricted list once their unemployment rates fall below 6%. This dynamic approach allows the government to adapt to economic conditions and labor market needs. Employers and foreign workers are encouraged to stay informed about these changes and monitor regional unemployment rates closely to navigate the evolving landscape effectively.
Frequently Asked Questions
What regions are currently affected by the low-wage LMIA suspension?
As of July 11, 2025, regions with high unemployment rates, including Montréal (6.7%), St. John’s (7.6%), Saint John (7.7%), and Peterborough (9.9%), are affected by the suspension.
How does this suspension impact employers and foreign workers?
Employers in these regions cannot hire new low-wage foreign workers or renew work permits under the TFWP. Foreign workers face reduced opportunities in these areas, though the policy may be lifted if unemployment rates improve.
Are there other LMIA streams still available?
Yes, other streams under the TFWP remain unaffected. The Low-Wage Stream has an average processing time of about 50 business days as of May 2025.
How can I stay informed about updates to this policy?
Monitor government announcements and regional unemployment rates. The suspension is currently set to remain in effect until at least July 10, 2025, but may be extended or adjusted.
Can regions be removed from the restricted list?
Yes, regions can be removed once their unemployment rates fall below the 6% threshold, allowing low-wage LMIA processing to resume.
