Maple News reports that Employment and Social Development Canada (ESDC) has temporarily suspended the processing of Labour Market Impact Assessments (LMIAs) for low-wage positions under the Temporary Foreign Worker Program (TFWP) in regions where local unemployment is at or above 6%. The measure, announced on August 26, affects employers in designated Census Metropolitan Areas (CMAs), although ESDC has not released a specific list of impacted regions.
CMAs are geographic areas with a population of at least 100,000, including a core population of 50,000 or more, and are used for statistical analysis and policy planning. Importantly, a CMA may encompass multiple cities and jurisdictions, such as the Toronto CMA, which includes both Toronto and Mississauga.
Statistics Canada data updated as of September 6 indicates that several urban centres meet the criteria for the suspension, including Toronto (8.6% unemployment), Windsor (9.8%), Edmonton (8.5%), and Calgary (7.6%). Other affected regions may include large parts of Ontario, Alberta, Quebec, and Atlantic Canada. However, this data is only indicative; ESDC has not officially confirmed which CMAs are impacted.
This policy shift aligns with the federal government’s broader strategy to reduce Canada’s reliance on temporary foreign workers. It follows a March announcement by Employment Minister Randy Boissonnault and Immigration Minister Marc Miller, which marked the first time temporary residents were included in Canada’s annual Immigration Levels Plan. The move is intended to address mounting concerns over housing, affordability, and the impact of temporary immigration programs on local labour markets.
Boissonnault emphasized that the overuse of the TFWP in low-wage sectors can suppress wages and reduce employers’ incentives to improve working conditions. The ESDC’s recent move also aligns with efforts to tighten post-pandemic immigration and labour policies, as Canada transitions out of emergency measures introduced during COVID-19.
As of now, employers in CMAs with unemployment rates of 6% or more may face disruptions in LMIA processing, complicating hiring plans that rely on international talent. Businesses operating in sectors such as agriculture, hospitality, and manufacturing, which often depend on low-wage foreign workers, may be most affected.
The government’s decision reflects a balancing act between economic recovery, population growth, and social integration. Maple News will continue monitoring regional responses and provide updates on policy developments affecting Canada’s workforce and immigration landscape.