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Which Regions Will Be Affected by the New Canada LMIA Guidelines in 2025?

Find out about Canada’s 2025 low-wage LMIA application regulations. Learn which areas are impacted and the solutions available to both employers and employees.

Overview of the New Regulations for Applications of Low-Wage LMIA

Beginning in January 2025, the federal government of Canada will stop processing Labor Market Impact Assessments (LMIAs) for specific regions under the low-wage stream of the Temporary Foreign Worker Program (TFWP). Employers in certain locations, referred to as Census Metropolitan locations (CMAs), will be restricted from employing foreign workers under this stream if their unemployment rate is 6% or greater.

Key Changes and Impact

  • No LMIA Processing: For jobs in CMAs where the unemployment rate is more than 6%, employers are not permitted to apply for an LMIA under the low-wage stream.
  • labor Permit Restrictions: Unless they fulfil high-wage stream requirements, foreign workers who labour in certain places are not eligible to renew their work permits.

Areas Impacted by the New Regulations

LMIAs under the low-wage stream will not be processed for the following 15 CMAs as of January 10, 2025, since their unemployment rates are 6% or higher:

Census Metropolitan Area (CMA) Unemployment Rate
St. John’s, Newfoundland and Labrador 6%
Saint John, New Brunswick 6.1%
Montréal, Quebec 6.2%
Oshawa, Ontario 7.5%
Toronto, Ontario 7.9%
Hamilton, Ontario 6.3%
St. Catharines-Niagara, Ontario 6.2%
Kitchener-Cambridge-Waterloo, Ontario 7.3%
Guelph, Ontario 6.2%
London, Ontario 6.4%
Windsor, Ontario 8.8%
Barrie, Ontario 6%
Regina, Saskatchewan 6.1%
Calgary, Alberta 7.5%
Edmonton, Alberta 6.8%

Every three months, this list will be updated; the most recent change is planned for April 4, 2025.

How to Find Out If It Affects Your Job

To determine whether a job site is located inside one of the impacted CMAs:

1. On the Census of Population website, enter the work location’s full postal code.

2. Search for “Census metropolitan area/Census agglomeration” in the Geography search results.

This will display the particular CMA along with whether the new LMIA processing requirements apply to it.

What Is the Low-Wage Stream of the TFWP?

Employers in Canada can fill labour shortages by hiring foreign workers through the Temporary Foreign Worker Program (TFWP).

  • 1. The employer may apply under the high-wage stream if the wage offered is at or above the provincial wage level.
  • 2. The employer must apply under the low-wage stream if the wage is less than the provincial wage level.

The government raised the high-wage stream’s pay threshold to 20% above the province or territory’s median wage in November 2024.

What to Do If a CMA Affects Your Job

Take into account the following choices if your job is in a CMA where the unemployment rate is 6% or higher:

1. Raise the Wage: In order to be eligible for the high-wage stream, employers may raise the wage.

2. Await Updates: Workers may request that their employers hold off on making any revisions to the unemployment rate for three months.

3. Look in Other Places: Employees might concentrate on locating work in CMAs where LMIAs are still being processed.

4. Permit Expiration: In order to stay in Canada, you must cease working and apply for a visitor record if you are currently on a low-wage TFWP permit that cannot be extended.

Previously Listed CMAs

As of January 10, 2025, the following CMAs are no longer on the list, despite having an unemployment rate above 6% from October 11 to January 9:

1. Quebec’s Trois-Riviera’s (5.2%)
2. Ontario/Quebec’s Ottawa-Gatineau (5.4%)
3. Ontario’s Kingston (5.7%)
4. Ontario’s Brantford (4.2%)
5. Manitoba’s Winnipeg (5.6%)
6. British Columbia’s Abbotsford-Mission (5.4%)
7. British Columbia’s Vancouver (5.9%)

A Comprehensive Overview of Census Metropolitan Areas (CMAs)

Statistics Canada defines a Census Metropolitan Area (CMA) as a territory that consists of a core population centre and neighbouring municipalities with close social and economic linkages. At least 100,000 people must live in a CMA, with at least 50,000 of them living in the core area. Even if the population of these areas drops below the threshold, they nonetheless maintain their CMA designation.