The Canadian government has introduced significant changes to the Temporary Foreign Worker Program (TFWP) under the low-wage stream. Starting January 2025, Labour Market Impact Assessments (LMIAs) for low-wage positions will no longer be processed in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher.
This policy update, announced on August 26, 2024, aims to prioritize local labor markets and reduce dependency on temporary foreign workers in regions where a sufficient labor force is available. Below is an in-depth breakdown of what this change means for employers, employees, and foreign workers.
What Are Low-Wage LMIAs and the TFWP?
The Temporary Foreign Worker Program (TFWP) enables Canadian employers to hire foreign workers for roles that cannot be filled by Canadian citizens or permanent residents.
- Low-wage stream: Covers jobs offering wages below the provincial or territorial median hourly wage.
- High-wage stream: For positions with wages at or above the median hourly wage threshold.
Employers applying for low-wage stream LMIAs must prove that they cannot find local talent and must comply with strict conditions such as caps on hiring.
What Triggered the Low-Wage LMIA Restrictions?
The government’s decision to restrict low-wage LMIA applications in certain CMAs is driven by several factors:
Addressing Local Unemployment: Regions with high unemployment rates already have a pool of potential workers for low – income. Protecting Workers: Ensuring local labor markets are prioritized reduces risks of exploitation associated with low-wage temporary wage . Reducing Reliance on Temporary Labor: Encouraging employers to focus on long-term hiring and skills development for the local workforce.
List of CMAs Where Low-Wage LMIAs Won’t Be Processed (January 2025)
As of January 10, 2025, the government has identified 15 CMAs where unemployment rates are 6% or higher. Here is the official list:
| Census Metropolitan Area (CMA) | Unemployment Rate |
| St. John’s, Newfoundland and Labrador | 6.0% |
| Saint John, New Brunswick | 6.1% |
| Montréal, Quebec | 6.2% |
| Oshawa, Ontario | 7.5% |
| Toronto, Ontario | 7.9% |
| Hamilton, Ontario | 6.3% |
| St. Catharines-Niagara, Ontario | 6.2% |
| Kitchener-Cambridge-Waterloo, Ontario | 7.3% |
| Guelph, Ontario | 6.2% |
| London, Ontario | 6.4% |
| Windsor, Ontario | 8.8% |
| Barrie, Ontario | 6.0% |
| Regina, Saskatchewan | 6.1% |
| Calgary, Alberta | 7.5% |
| Edmonton, Alberta | 6.8% |
This list will be updated every three months, with the next revision scheduled for April 4, 2025.
What Can Employers and Workers Do in Restricted Regions?
Employers and workers operating in restricted CMAs have several options to navigate the new rules:
For Employers
- Shift to the High-Wage Stream: By increasing the wage for the position above the median wage threshold, employers can apply under the high-wage stream.
- Wait for Updates: The unemployment rates are updated quarterly, and employers can check if their region qualifies for LMIA applications in future updates.
- Explore Alternative Programs: Programs like the Express Entry System or Provincial Nominee Programs (PNPs) offer permanent solutions for hiring foreign talent.
For Workers
- Focus on Eligible CMAs: Workers can apply for jobs in regions not affected by the restrictions.
- Seek Employer Support: Workers can ask employers if they are willing to raise wages or wait until the unemployment rates are updated.
- Apply for Visitor Status: If workers lose their work permits, they can apply for visitor records to legally remain in Canada while exploring other options.
How to Check if a Job Falls Within a Restricted CMA
To determine whether a job location is in a restricted CMA, follow these steps:
- Locate the Job’s Postal Code: Identify the full postal code of the worksite.
- Use Census Data: Visit the Census of Population Geography Tool and search for the postal code.
- Check CMA Status: The results will indicate whether the job is in a CMA listed as restricted.
What is the Low-Wage Stream of the TFWP?
The low-wage stream applies to positions where the offered wage falls below the median hourly wage for the province or territory. Employers hiring under this stream face several conditions, including:
- Caps on Hiring: Employers cannot have more than 10% of their workforce under the low-wage stream.
- Transportation and Housing: Employers must cover travel costs and provide affordable housing for workers.
In November 2024, new rules increased the wage threshold for the high-wage stream to 20% higher than the median wage, encouraging employers to offer better compensation.
Past CMA Lists and Changes
Previously restricted CMAs that no longer meet the criteria include:
- Trois-Rivières, Quebec (5.2%)
- Ottawa-Gatineau, Ontario/Quebec (5.4%)
- Kingston, Ontario (5.7%)
- Brantford, Ontario (4.2%)
- Winnipeg, Manitoba (5.6%)
- Abbotsford-Mission, British Columbia (5.4%)
- Vancouver, British Columbia (5.9%)
This shift shows that regional unemployment rates can fluctuate significantly, affecting LMIA eligibility over time.
FAQs
Where can I find the latest CMA updates?
You can access the government’s updated list of CMAs on their official website every three months.
Can employers still apply for high-wage LMIAs in restricted regions?
Yes, high-wage LMIA applications are not impacted by this policy.
What happens if a CMA unemployment rate drops below 6%?
If a CMA’s unemployment rate drops below 6%, it may become eligible for low-wage LMIA applications in the next quarterly update.
Are agricultural workers affected by this restriction?
No, agricultural positions are exempt from the low-wage LMIA restrictions.
What are the options for temporary workers who lose their work permits?
Workers can apply for a visitor record to remain in Canada legally while exploring new opportunities.
How can I increase my eligibility for jobs under the high-wage stream?
Consider obtaining additional certifications or training to qualify for higher-paying roles.
Conclusion
The low-wage LMIA restrictions introduced in January 2025 reflect Canada’s efforts to prioritize local labor markets and address regional unemployment. Employers & workers need to stay informed about CMA updates and adjust their strategies accordingly. While these changes may pose challenges, they also create opportunities to invest in skills, better wages, & long-term hiring solutions.