Low-Wage LMIA Ban in 24 Canadian Cities : What Employers & Workers Need to Know

By Sanjay Prasher (SP), M.B.A, RCIC
Regulated Canadian Immigration Consultant (CICC #R514499)


Key Update: 24 Canadian Cities Temporarily Block Low-Wage LMIA Applications

If you’re an employer or temporary foreign worker relying on the low-wage stream of the Temporary Foreign Worker Program (TFWP), there’s an important update you need to know.

As of April 4, 2025, Canada has suspended low-wage LMIA processing in 24 census metropolitan areas (CMAs) where unemployment is 6% or higher. This ban will last until July 10, 2025, after which the government will reassess unemployment rates.

Why This Change Matters

  • Employers in these regions cannot hire new foreign workers under the low-wage TFWP stream.

  • Existing TFWP workers in these cities cannot renew their work permits if their job falls under the low-wage category.

  • Workers who lose status must stop working immediately—though they may apply for a visitor record to stay in Canada legally.

This policy is part of Canada’s effort to prioritize local hiring in high-unemployment regions while still allowing foreign workers in areas with labor shortages.


Full List of Affected Cities (April-July 2025)

Here are the 24 CMAs where low-wage LMIA applications will NOT be processed until at least July 2025:

City & Province Unemployment Rate
St. John's, NL 7.6%
Saint John, NB 7.7%
Fredericton, NB 6.9%
Drummondville, QC 8.0%
Montréal, QC 6.7%
Kingston, ON 7.2%
Peterborough, ON 9.9%
Oshawa, ON 8.0%
Toronto, ON 8.6%
Hamilton, ON 7.3%
St. Catharines-Niagara, ON 7.7%
Kitchener-Cambridge-Waterloo, ON 8.5%
Brantford, ON 7.2%
Guelph, ON 6.2%
Windsor, ON 9.3%
Barrie, ON 7.5%
Calgary, AB 7.8%
Red Deer, AB 8.4%
Edmonton, AB 7.3%
Kelowna, BC 6.7%
Kamloops, BC 7.1%
Abbotsford-Mission, BC 6.2%
Vancouver, BC 6.6%
Nanaimo, BC 6.0%

Note: The list is updated every 3 months—next update expected July 11, 2025.


Which Cities Were Removed from the Ban?

Some cities that were restricted in Q1 2025 (Jan-Apr) are now open for low-wage LMIA processing:

  •  Regina, SK (Unemployment dropped to 5.9%)
  •  London, ON (Unemployment now 5.5%)

If you’re in these cities, you can now apply for low-wage LMIAs again.


What Employers & Workers Can Do

If Your Job is in a Restricted CMA:

  1. Increase the Wage to High-Wage Stream

    • If the employer can raise the wage to meet high-wage LMIA requirements, the application can proceed.

  2. Wait for the Next Quarterly Update (July 11, 2025)

    • Unemployment rates change—check if your city’s status improves.

  3. Hire from Non-Restricted CMAs

    • Focus recruitment in cities where low-wage LMIAs are still accepted.

If You’re a TFWP Worker Affected:

  • Check if your employer can switch to a high-wage LMIA.

  • If your work permit expires, stop working immediately.

  • Apply for a visitor record if you wish to stay in Canada.

  • Explore other immigration pathways (e.g., Express Entry, PNP).


How to Check If Your Work Location is in a Restricted CMA

  1. Enter the work location’s postal code in the Census of Population Search.

  2. Look for "Census Metropolitan Area (CMA)" in the results.

    • If it matches a restricted city, your LMIA won’t be processed.

    • If it says "Census Agglomeration" or no CMA, your application is still eligible.


What is a CMA?

Census Metropolitan Area (CMA) is a major urban region with:
✔ 100,000+ total population
✔ 50,000+ in the core city

Even if a CMA’s population later drops below these thresholds, it keeps its CMA status.


Navigating the LMIA Restrictions

This policy aims to balance foreign worker demand with local job availability. If you’re impacted:

  •  Employers: Consider wage adjustments or hiring from open regions.
  •  Workers: Explore alternative work permits or immigration options.

Need Help?
 Call CTIV Immigration at +1 416-857-0100
 Email: info@ctivci.ca

We help employers and workers navigate LMIA and work permit challenges—book a free consultation today!


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Sources: Government of Canada, IRCC, Statistics Canada.

Disclaimer: Immigration rules change frequently. Always consult an RCIC for personalized advice.

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