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April 4, 2025, marked a critical turning point for Canadian employers and temporary foreign workers (TFWs). The federal government released its quarterly list of Census Metropolitan Areas (CMAs) where low-wage Labour Market Impact Assessments (LMIAs) can no longer be processed—a decision driven by updated unemployment figures.
The rule? If a CMA’s unemployment rate reaches 6% or higher, low-wage LMIA applications are paused until at least July 11, 2025.
This policy, first implemented in September 2024, aims to prioritize Canadian workers in economically challenged regions. However, it’s stirring major debate among businesses, immigrants, and policymakers.
What’s Changing with LMIA Eligibility?
The Labour Market Impact Assessment (LMIA) is a mandatory approval process for Canadian employers hiring foreign nationals under the Temporary Foreign Worker Program (TFWP). But for low-wage positions, approval is contingent on local unemployment rates.
As of the April 4, 2025, update, 24 CMAs have crossed the 6% unemployment threshold — making low-wage LMIA applications ineligible in these areas.
That means:
- No new hires under low-wage LMIA
- No LMIA-based work permit renewals
- No support for PR applications via this route
Affected Regions: Full List of Blocked CMAs (April 4 to July 10, 2025)
Some notable entries on the ineligible list include:
- Toronto, ON – 8.6%
- Vancouver, BC – 6.6%
- Edmonton, AB – 7.3%
- Calgary, AB – 7.8%
- Windsor, ON – 9.3%
- Peterborough, ON – 9.9%
- Toronto, ON – 8.6%
New Additions this quarter:
- Fredericton, NB
- Kamloops, BC
- Red Deer, AB
- Drummondville, QC
- Nanaimo & Chilliwack, BC
- Fredericton, NB
Back on Track:
- London, ON, and Regina, SK, dropped below 6%, making LMIA applications possible again in these CMAs.
📊 Peterborough’s unemployment jumped the most — skyrocketing from 4.5% to 9.9% in just three months.
What Are Your Options?
If you're in an ineligible CMA, don’t lose hope. Here are three workarounds:
- Switch to the High-Wage Stream
Raise wages to meet the 20% premium above provincial median.
Example: In Ontario, the threshold is now $34.07/hour. - Apply Through Exempt Sectors
Healthcare, construction, and agriculture are not affected by the 6% cap — even in high-unemployment CMAs. - Wait for the Next Update
The next review is set for July 11, 2025. If your CMA's rate drops below 6%, the LMIA gates may reopen.
- Switch to the High-Wage Stream
What This Means for Foreign Workers
Foreign workers on low-wage LMIA permits in affected areas face tough choices:
- Permit expiring? You can’t renew. You’ll need to switch streams, move locations, or apply for a visitor record to stay in Canada.
- Are you job hunting? Avoid high-unemployment CMAs. Focus on cities like Victoria (3.4%), Québec City (5.1%), or Saskatoon (4.8%).
💡 Pro Tip: Use your postal code in Statistics Canada's Census Tool to determine if your job offer is in a blocked CMA.
The Bigger Picture: Labour Market in 2025
The federal government's LMIA freeze reflects broader economic concerns. As Canada battles inflation, a housing crisis, and post-pandemic recovery, urban centres continue to shed jobs — especially in manufacturing and tech.
Rural and remote communities, however, remain open for LMIA hiring, suggesting a policy push to redirect labour demand outside major cities.
While some applaud the move as a safeguard for Canadian workers, critics warn it could cripple businesses already facing staffing shortages — particularly in cities like Toronto and Calgary.
Action Plan for Employers & Workers
For Employers
- ✅ Check postal codes against the CMA list
- 💵 Recalculate wages for high-wage stream eligibility
- 🛡️ Highlight sector exemptions where applicable
- ✅ Check postal codes against the CMA list
For Workers
- 📍 Focus job search on eligible CMAs
- 💬 Negotiate wage increases with your employer
- 📑 Consider alternate permits or status changes
- 📍 Focus job search on eligible CMAs
What’s Next?
This isn’t just bureaucratic red tape — it’s a major shift in how Canada manages its labour market and immigration priorities.
📅 Mark your calendar: The next unemployment update drops July 11, 2025. It could unlock new regions or tighten the belt even further.
🗨️ Have thoughts on this change? Join the conversation online and share your experience with LMIA hiring.
📌 Bookmark this page for future updates and stay informed on the evolving state of Canadian immigration and employment.
