On this page you will find:
- Six Canadian cities newly affected by low-wage LMIA restrictions.
- Two metropolitan areas where restrictions have been lifted.
- Updated unemployment rates in Canada’s largest cities.
- Which employers and occupations qualify for exemptions.
- What the changes mean for temporary foreign workers.
- How employers can check whether they can submit an LMIA application.
Canada has expanded restrictions on hiring temporary foreign workers in low-wage positions, with six additional metropolitan areas now subject to limits on Labour Market Impact Assessment (LMIA) applications.
Employment and Social Development Canada (ESDC) updated its unemployment-rate figures on October 9, 2026, increasing the number of affected census metropolitan areas (CMAs) from 26 to 30.
The changes mean employers in Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge face new restrictions on hiring foreign workers through the low-wage stream of the Temporary Foreign Worker Program (TFWP).
However, restrictions have been lifted in Kamloops and Chilliwack, British Columbia, after unemployment rates in both areas fell below the government’s six per cent threshold.
The revised rules apply to LMIA applications submitted between October 9, 2026, and January 7, 2027.
The changes could affect employers seeking to fill vacancies and temporary foreign workers hoping to obtain or extend employer-specific work permits.
Six More Canadian Cities Face Low-Wage LMIA Restrictions
Under the Temporary Foreign Worker Program, Service Canada generally refuses to process certain low-wage LMIA applications when the unemployment rate in the relevant census metropolitan area reaches six per cent or higher.
The measure aims to prioritize Canadian citizens and permanent residents for available employment opportunities in areas experiencing higher unemployment.
The October 9 update brings six additional metropolitan areas under the restrictions.
| Metropolitan area | Previous rate | New rate |
| Halifax, Nova Scotia | 5.9% | 6.1% |
| Fredericton, New Brunswick | 5.3% | 6.2% |
| Kingston, Ontario | 5.3% | 6.3% |
| St. Catharines–Niagara, Ontario | 5.8% | 6.5% |
| Regina, Saskatchewan | 5.9% | 6.7% |
| Lethbridge, Alberta | 5.4% | 6.0% |
All six metropolitan areas recorded unemployment rates below six per cent during the previous reporting period.
Their inclusion means employers offering wages below the applicable provincial or territorial threshold generally cannot obtain new low-wage LMIAs unless their applications qualify for an exemption.
The change is particularly significant for employers that rely on foreign workers to fill vacancies in occupations that do not qualify for the exemptions.
However, the restrictions do not prevent employers from hiring Canadian citizens, permanent residents or foreign nationals who already hold valid open work permits.
Restrictions Lifted In Two British Columbia Cities
While six metropolitan areas have joined the restricted list, two have become eligible for low-wage LMIA processing again.
| Metropolitan area | Previous rate | New rate |
| Kamloops, British Columbia | 7.0% | 3.6% |
| Chilliwack, British Columbia | 7.9% | 5.6% |
Kamloops recorded one of the largest improvements, with its applicable unemployment rate falling by 3.4 percentage points.
Chilliwack also experienced a significant decline, bringing its rate below the six per cent threshold.
Employers in both areas can again submit low-wage LMIA applications without facing the metropolitan unemployment-rate restriction.
However, they must still meet the program’s other requirements, including recruitment rules, wage requirements and limits on the proportion of low-wage temporary foreign workers at a worksite.
Eligibility for processing does not guarantee a positive LMIA.
Toronto, Vancouver And Montreal Remain Restricted
Several of Canada’s largest employment markets continue to exceed the unemployment threshold.
Toronto, Vancouver and Montreal all recorded increases in their applicable unemployment rates, while Ottawa-Gatineau experienced an even sharper rise.
| Metropolitan area | Previous rate | New rate |
| Toronto | 7.3% | 7.5% |
| Vancouver | 6.7% | 7.0% |
| Montreal | 6.8% | 7.2% |
| Ottawa-Gatineau | 6.7% | 7.9% |
| Calgary | 7.0% | 6.4% |
| Edmonton | 7.2% | 7.6% |
Ottawa-Gatineau recorded an increase of 1.2 percentage points, reaching 7.9 per cent.
Calgary’s unemployment rate declined to 6.4 per cent, but the city remains subject to the restrictions.
Edmonton’s rate increased to 7.6 per cent, further exceeding the threshold.
Other metropolitan areas, including Oshawa, London, Hamilton and Kitchener-Cambridge-Waterloo, also remain above six per cent.
The restrictions apply according to the location of the position being filled, rather than the employer’s head office.
Employers operating in several metropolitan areas must therefore check the unemployment rate for each affected work location.
Which Employers Can Still Obtain Low-Wage LMIAs?
The restrictions do not amount to a complete ban on hiring temporary foreign workers.
ESDC continues to process certain LMIA applications in metropolitan areas with unemployment rates of six per cent or higher.
Exemptions apply to specified occupations and sectors that the government has identified as requiring continued access to foreign workers.
These include:
- Primary agriculture occupations.
- Positions in the construction sector.
- Positions in food manufacturing.
- Positions in hospitals.
- Positions in nursing and residential care facilities.
- Certain in-home caregiver positions.
- Positions that support permanent residence applications only, without an accompanying work permit application.
- Certain genuinely temporary or highly mobile positions.
The exemptions mean some employers in newly restricted cities can continue applying for LMIAs, provided they meet the relevant conditions.
For example, an eligible construction employer in Halifax may still submit an LMIA application despite the city’s unemployment rate exceeding six per cent.
Similarly, qualifying positions in hospitals or nursing and residential care facilities may remain eligible for processing.
Employers must ensure that their applications meet the applicable occupational or industry classification requirements.
The government also permits exemptions for certain short-duration positions, generally lasting 120 calendar days or less, where the work is genuinely temporary or highly mobile.
Employers seeking this exemption must submit a written justification with their application. Service Canada may consider longer durations in exceptional circumstances.
What Other Restrictions Apply To Low-Wage Employers?
Employers operating outside restricted metropolitan areas, or qualifying for an exemption, must still comply with the broader Temporary Foreign Worker Program rules.
These include limits on the proportion of temporary foreign workers that employers can hire in low-wage positions.
The standard cap is 10 per cent of the workforce at a given work location.
A higher 20 per cent cap applies to specified sectors and occupations, including construction, food manufacturing, hospitals and nursing and residential care facilities.
Certain in-home caregiver positions also qualify for the higher cap.
Other rules cover recruitment efforts, wages, working conditions, transportation, housing and health insurance.
Employers must also demonstrate that their business and job offer are genuine.
ESDC normally charges a $1,000 processing fee for each LMIA position requested. However, employers are not charged when Service Canada refuses to process an application under the applicable refusal-to-process rules.
The government has also introduced temporary measures for eligible rural employers in participating provinces and territories. These may provide relief from certain workforce caps, but do not automatically exempt employers from every LMIA requirement.
What Happens To Temporary Foreign Workers Already In Canada?
The revised unemployment rates do not automatically cancel existing Canadian work permits.
Temporary foreign workers who hold valid employer-specific work permits can generally continue working under the conditions stated on those permits until they expire.
However, the restrictions can create complications when workers need their employers to obtain a new LMIA to support a work permit extension.
If an employer operates in a restricted metropolitan area and does not qualify for an exemption, Service Canada may refuse to process the new LMIA application.
Without a positive LMIA, a worker who requires one may be unable to obtain another employer-specific work permit for that position.
Workers in this situation should review their immigration options before their current authorization expires.
Depending on their circumstances, possible options include:
- Finding employment with an employer in a metropolitan area where low-wage LMIA applications remain eligible for processing.
- Finding a position covered by an exemption.
- Qualifying for an LMIA-exempt work permit under another immigration program.
- Applying for an open work permit if they meet the eligibility requirements.
- Applying to change their immigration status if they cannot continue working.
Workers should not assume that submitting a work permit extension application guarantees continued employment authorization.
An eligible worker who submits a valid application before their existing permit expires may benefit from maintained status while Immigration, Refugees and Citizenship Canada (IRCC) processes the application.
However, workers with employer-specific permits generally remain subject to their existing employment conditions during this period.
Those changing employers normally require a new work permit, although eligible applicants may request interim authorization to begin working for a new employer while IRCC processes their application.
A worker who cannot secure a new LMIA or another basis for work authorization may ultimately need to stop working when their authorization ends.
How Can Employers Check Whether Their Location Is Restricted?
Employers should verify the precise location of a proposed job before submitting a low-wage LMIA application.
ESDC uses census metropolitan area boundaries rather than municipal boundaries alone.
This distinction matters because a worksite outside a city’s central municipality may still fall within the surrounding metropolitan area.
Employers can check their eligibility by following three steps.
- Enter the complete postal code of the proposed work location into Statistics Canada’s Census of Population geographic search tool.
- Determine whether the location belongs to a census metropolitan area or a census agglomeration.
- If the worksite falls within a census metropolitan area, compare the applicable unemployment rate with ESDC’s latest table.
If the location is within a census metropolitan area with unemployment of six per cent or higher, the refusal-to-process measure generally applies unless the position qualifies for an exemption.
Locations outside census metropolitan areas are not subject to this particular unemployment-rate restriction, although other Temporary Foreign Worker Program requirements still apply.
Employers can consult the government’s official LMIA refusal-to-process rules and unemployment-rate table before submitting an application.
When Will Canada Update The LMIA Restrictions Again?
ESDC reviews the applicable metropolitan unemployment rates every three months.
The current figures apply to applications submitted from October 9, 2026, to January 7, 2027.
The next scheduled update is January 8, 2027.
Further changes could bring additional metropolitan areas under the restrictions or allow previously restricted areas to become eligible again.
Employers planning to recruit foreign workers in early 2027 should therefore monitor the quarterly updates and confirm the rules applicable on their intended submission date.
For temporary foreign workers approaching the expiry of an employer-specific work permit, early planning is particularly important.
Although the latest changes affect where employers can obtain certain low-wage LMIAs, they do not eliminate all pathways to working in Canada.
Eligibility ultimately depends on the proposed occupation, wage, work location, employer and the worker’s individual immigration circumstances.
Frequently Asked Questions
Which Canadian cities face new low-wage LMIA restrictions?
Six metropolitan areas became newly restricted on October 9, 2026: Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge. Their applicable unemployment rates reached or exceeded six per cent. The changes bring the total number of restricted census metropolitan areas to 30 out of the 41 listed by ESDC.
Can employers still hire temporary foreign workers in restricted cities?
Yes. The restrictions apply to certain low-wage LMIA applications rather than all foreign workers. Exemptions remain available for qualifying positions in primary agriculture, construction, food manufacturing, hospitals and nursing and residential care facilities. Employers may also hire workers who already possess valid open work permits, subject to the applicable employment rules.
Will the new LMIA restrictions cancel existing work permits?
No. The October 9 changes do not automatically invalidate existing work permits. Workers can generally continue working under their current permit conditions until their authorization expires. However, an employer may face difficulties obtaining a new LMIA to support an extension if the position falls within a restricted metropolitan area.
Which Canadian cities have been removed from the restricted list?
Kamloops and Chilliwack, both in British Columbia, are no longer subject to the metropolitan unemployment-rate restriction. Kamloops recorded a decline from 7.0 per cent to 3.6 per cent, while Chilliwack’s rate fell from 7.9 per cent to 5.6 per cent. Employers must still satisfy other LMIA requirements.
When will Canada review the low-wage LMIA restrictions again?
The next unemployment-rate update is scheduled for January 8, 2027. The current figures apply to LMIA applications submitted from October 9, 2026, through January 7, 2027. Employers should check the latest ESDC table before applying because metropolitan areas can enter or leave the restricted list following each quarterly review.