Canada has lifted the low-wage Labour Market Impact Assessment (LMIA) processing freeze in eight regions, following the latest unemployment updates from Statistics Canada. The Employment and Social Development Canada (ESDC) has confirmed that LMIAs submitted between January 9 and April 9, 2026, in these regions will now be processed.
This development comes as welcome news for temporary foreign workers and employers in areas where unemployment rates have dropped below key thresholds.
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Why This Matters
The LMIA processing freeze, introduced in 2024, ties the ability to process low-wage LMIA applications to local unemployment rates. If a region’s unemployment rate is above 6%, ESDC suspends processing for low-wage positions. This policy has significant implications for temporary workers, including:
- Inability to apply for a renewed LMIA and temporary work permit in high-unemployment areas.
- Limited options for extending work permits while pursuing permanent residency in Canada.
- Restricted access to benefits tied to legal work status, including healthcare and certain provincial nominee programs.
While Canada’s national unemployment rate increased slightly to 6.8% during this period, the LMIA freeze focuses on local unemployment rates. Many regions saw improvements, allowing employers to once again submit low-wage LMIA applications.
Regions Where the LMIA Freeze Is Now Lifted
Eight regions have seen unemployment rates fall below 6%, making them eligible for low-wage LMIA processing from January 9 to April 9, 2026:
- Halifax, Nova Scotia – 5.2%
- Moncton, New Brunswick – 5.5%
- Saint John, New Brunswick – 5.8%
- Fredericton, New Brunswick – 5.2%
- Montréal, Quebec – 5.5%
- Kingston, Ontario – 5.6%
- Winnipeg, Manitoba – 5.7%
- Vancouver, British Columbia – 5.9%
Employers in these regions can submit LMIAs for low-wage positions, providing temporary foreign workers the opportunity to obtain or renew work permits. All standard LMIA requirements, including caps on temporary foreign workers, continue to apply.
Other Regions Eligible for Low-Wage LMIA Processing
In addition to the newly eligible eight regions, the following areas are also processing low-wage LMIAs during this period:
- Saguenay, Quebec – 4.3%
- Québec City, Quebec – 2.9%
- Sherbrooke, Quebec – 4.8%
- Trois-Rivières, Quebec – 3.9%
- Drummondville, Quebec – 5.6%
- Peterborough, Ontario – 5.3%
- Thunder Bay, Ontario – 4.2%
- Saskatoon, Saskatchewan – 5.8%
- Victoria, British Columbia – 3.7%
These figures reflect only Census Metropolitan Areas (CMAs) with populations over 100,000. Smaller regions are generally eligible for low-wage LMIA submissions regardless of the freeze.
Regions Where the LMIA Freeze Still Applies
Despite improvements in several areas, the freeze remains in place in regions where local unemployment remains above 6%. Key affected regions include:
- Toronto, Ontario – 7.5%
- Ottawa–Gatineau, Ontario/Quebec – 6.8%
- Hamilton, Ontario – 6.4%
- Oshawa, Ontario – 8.0%
- St. Catharines–Niagara, Ontario – 6.5%
- Kitchener–Cambridge–Waterloo, Ontario – 8.1%
- Belleville–Quinte West, Ontario – 10.6%
- Windsor, Ontario – 7.1%
- Calgary, Alberta – 6.3%
- Edmonton, Alberta – 6.9%
- Kelowna, British Columbia – 8.5%
- Kamloops, British Columbia – 6.6%
This highlights that many major urban centres, particularly in Ontario, continue to experience elevated unemployment rates, limiting LMIA options for low-wage roles.
LMIA Processing Over Time
The number of regions eligible for low-wage LMIA processing has fluctuated since 2024. The trend shows:
- Oct 2024 – Jan 2025: 16 CMAs eligible
- Jan – Apr 2025: 18 CMAs
- Apr – Jul 2025: 15 CMAs
- Jul – Oct 2025: 12 CMAs
- Oct 2025 – Jan 2026: 9 CMAs (lowest point)
- Jan – Apr 2026: 17 CMAs
This fluctuation reflects changes in local employment levels, emphasizing the importance of checking current LMIA eligibility before applying.
What This Means for Temporary Workers
For temporary foreign workers, the reopening of LMIA processing in these eight regions offers new opportunities to work legally in Canada. Workers should note:
- Ontario’s major cities remain challenging for low-wage roles due to persistently high unemployment.
- Consistently low-unemployment regions, such as Saguenay, Québec City, Sherbrooke, Thunder Bay, Saskatoon, and Victoria, may offer more stable opportunities for LMIA-dependent employment.
- Volatility in smaller CMAs means a single update may not reflect long-term trends; reviewing data over multiple periods is advisable.
Looking Ahead
ESDC will release its next update on April 10, 2026. Regional eligibility may change, so both employers and workers should plan LMIA submissions accordingly. Staying informed through immigration communities and official EDSC updates is essential for maximizing employment opportunities in Canada.
The lifting of the LMIA freeze in these regions provides a significant boost for temporary workers and employers, creating a pathway for legal employment and work permit renewals in areas where local labour markets have improved.
For expert guidance and support through the LMIA application process, contact our Apical Immigration Experts today. Our team can help you navigate the requirements, avoid delays, and maximize your chances of approval.
- Email: info@immigrationxperts.com
- Call us: +91-9999467686, +91-8447-696555
