Canada is preparing to restart Labour Market Impact Assessment (LMIA) processing for the low-wage stream in eight key regions during the first quarter of 2026, providing relief to employers and foreign workers alike. This move follows a period in 2025 when LMIA applications in many areas were suspended due to high unemployment rates, limiting the ability of employers to hire temporary foreign workers for low-wage positions.
As of January 9, 2026, Service Canada will resume processing low-wage LMIA applications in several Census Metropolitan Areas (CMAs) where unemployment has dropped below the 6 % threshold. Among the regions newly eligible for processing are Vancouver, British Columbia; Winnipeg, Manitoba; and Halifax, Nova Scotia, along with Moncton, Saint John, Fredericton, Montréal and Kingston. These regions had previously been excluded in late 2025 when their unemployment rates exceeded the threshold that temporarily blocked low-wage LMIA applications.
Under the Temporary Foreign Worker Program (TFWP), employers must obtain a positive or neutral LMIA to hire most temporary foreign workers in low-wage jobs — roles that pay less than 120 % of the region’s median wage or the employer’s typical pay for similar positions. Without this assessment, employers cannot support work permit applications or renewals for affected roles. Resuming processing in these eight regions opens the door again for foreign nationals to work legally in jobs in hospitality, retail, support services, and other sectors that have faced staffing shortages.
The reason behind the pause and subsequent restart is tied directly to regional unemployment metrics. Canada’s LMIA policy for low-wage work uses unemployment rates as a gauge of local labour availability: when a region’s unemployment rises above 6 %, the government halts low-wage LMIA processing to encourage employers to prioritize hiring locally. As unemployment rates fell below this threshold in the affected regions, the federal government reinstated LMIA processing, reflecting improving conditions in the labour market.
This quarterly update system means the list of eligible and ineligible regions can change every few months. The next anticipated update is expected on April 10, 2026, which could adjust processing eligibility further depending on updated unemployment data.
For employers and job seekers, the practical impact is significant. With LMIA processing active again in these cities, employers can pursue work permits for foreign workers in low-wage streams without needing to offer wages at or above the high-wage thresholds. This is particularly helpful for small and medium-sized businesses that rely on temporary workers to fill roles that have struggled to attract domestic applicants.
Workers interested in such positions should be aware that regional eligibility matters. Before submitting LMIA or work permit applications, both employers and employees are advised to confirm the current unemployment rate and CMA status where the job is located. If a region is temporarily ineligible due to high unemployment, employers may still apply under the high-wage LMIA stream by offering wages at or above specific provincial thresholds.
In summary, the reopening of low-wage LMIA processing in eight regions including Vancouver, Winnipeg, and Halifax represents an important shift back toward normalcy under the Temporary Foreign Worker Program. As Canada continues to monitor economic conditions and adjust priorities, these quarterly updates will help balance local hiring with the labour needs of employers across the country.
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