Canada Expands Freeze on Low-Wage LMIA Processing in Six New Regions

Maple News reports that the federal government has updated its quarterly list of Canadian regions where low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP) will not be processed. Starting October 10, 2024, six new Census Metropolitan Areas (CMAs) have been added to the ineligible list, increasing the total from 26 to 32 regions nationwide.

Introduced in August 2024, this measure aims to prioritize domestic employment by pausing low-wage LMIA processing in CMAs with unemployment rates of 6% or higher. This data-driven approach is part of a broader strategy to ensure foreign labour complements, rather than competes with, local Canadian workers in economically struggling areas.

The newly added regions to the freeze list include Guelph and Greater Sudbury in Ontario, Winnipeg in Manitoba, Regina in Saskatchewan, and Lethbridge and Red Deer in Alberta. Kelowna, British Columbia, was also added even though its unemployment rate currently sits at exactly 6.0%, the policy threshold.

During the same update, Peterborough, Ontario, has been removed from the ineligible list, allowing it to resume processing low-wage LMIAs beginning October 10. This suggests local economic conditions in Peterborough have improved.

The LMIA freeze in the designated regions will remain in effect until January 8, 2026, unless the list is adjusted in a future quarterly revision. Employers in affected areas will not be able to apply for low-wage foreign workers during this period, although high-wage LMIA applications remain unaffected.

The decision is part of Canada’s ongoing efforts to balance immigration with labour market realities. By releasing quarterly updates, the government aims to maintain transparency, giving employers and potential foreign workers clarity on where employment opportunities aligned with immigration pathways remain viable.

Among the 32 ineligible CMAs, some of the highest unemployment rates were recorded in Nanaimo, BC (9.7%), Windsor, ON (11.3%), and Toronto, ON (9.5%). These figures highlight the economic challenges prompting the temporary restrictions.

As always, Maple News will continue to monitor changes to the TFWP and LMIA policies, providing timely updates for employers and foreign workers navigating Canada’s dynamic labour market landscape.

Leave a Reply

Your email address will not be published. Required fields are marked *