Starting July 10, 2026, employers in eight Canadian regions can once again submit low-wage Labour Market Impact Assessment applications for processing.

The regions include Halifax, Winnipeg, Regina, Saint John, Fredericton, Drummondville, Kingston, and St. Catharines-Niagara.

These regions were previously affected by the federal government’s refusal-to-process policy because their unemployment rates were at or above 6%. Their latest unemployment rates have now fallen below the federal threshold.

At the same time, four other regions have been added to the processing restriction. Low-wage LMIA applications in Saskatoon, Red Deer, Kamloops, and Chilliwack will generally not be processed until at least October 9, 2026.

Why the Location of Employment Matters

The federal government generally refuses to process low-wage LMIA applications for positions located in a census metropolitan area, or CMA, where the unemployment rate is 6% or higher. The list is updated every three months based on regional unemployment data.

This means that an employer’s eligibility to apply under the low-wage LMIA stream can change even when the position, wage, employee, and business remain the same. From July 10 to October 9, low-wage LMIA applications will generally not be processed in 26 CMAs across Canada. This is four fewer than during the previous three-month period.

The next update is expected on October 10, 2026.

Regions Removed from the LMIA Processing Restriction

The following regions have fallen below the 6% unemployment threshold and are no longer subject to the low-wage LMIA processing freeze:

For employers in these regions, the change may reopen an important option for recruiting and retaining foreign workers in lower-wage positions.

Employers must still meet all regular LMIA requirements, including recruitment, wage, working-condition, business-legitimacy, and transition-related requirements where applicable.

Regions Newly Added to the Restriction

The following regions now have unemployment rates of 6% or higher:

Employers in these areas may now face difficulties submitting new low-wage LMIA applications, unless the position qualifies for an exemption.

Full List of Restricted CMAs

From July 10 to October 9, 2026, low-wage LMIA applications will generally not be processed for positions in the following CMAs:

• St. John’s

• Moncton

• Montréal

• Ottawa-Gatineau

• Belleville-Quinte West

• Peterborough

• Oshawa

• Toronto

• Hamilton

• Kitchener-Cambridge-Waterloo

• Brantford

• Guelph

• London

• Windsor

• Barrie

• Greater Sudbury

• Saskatoon

• Calgary

• Red Deer

• Edmonton

• Kelowna

• Kamloops

• Chilliwack

• Abbotsford-Mission

• Vancouver

• Nanaimo

The restriction applies according to the actual location where the foreign worker will perform the job. The employer’s head office or corporate address does not determine the applicable CMA when the employee will work at another location.

Are Any Positions Exempt?

Yes. The refusal-to-process policy does not apply to every low-wage LMIA application. 

Certain occupations and applications may remain eligible even when the position is located in a restricted CMA. Exemptions may include:

• Primary agriculture occupations

• Construction positions

• Food-manufacturing positions

• Positions in hospitals

• Positions in nursing and residential care facilities

• Certain in-home caregiver positions

• Applications submitted only to support permanent residence, without a work permit application

• Certain positions lasting 120 calendar days or less

The exemption must be assessed carefully. Working in the food industry, for example, does not automatically mean that a position qualifies for the food-manufacturing exemption. A restaurant position and a position inside a food-manufacturing facility may be treated differently.

Could Increasing the Wage Be an Option?

The regional processing restriction applies to the low-wage stream of the Temporary Foreign Worker Program. It does not apply in the same way to the high-wage stream.

A position is categorized as low wage or high wage by comparing the offered hourly wage with the applicable provincial or territorial wage threshold. New wage thresholds will take effect for LMIAs received on or after July 17, 2026:

A wage below the applicable threshold places the application under the low-wage stream. A wage at or above the threshold places it under the high-wage stream.

An employer in a restricted CMA may therefore consider whether a legitimate wage increase is possible. However, changing the wage is not simply an administrative solution. The employer must be able to pay the higher wage, and the wage must remain reasonable for the occupation, location, business operations, and employment agreement. The high-wage stream also has separate requirements, including a transition plan in many cases.

Opportunities Outside Major Urban Areas

Foreign workers and employers may also wish to consider opportunities outside CMAs.

The federal government recently introduced a temporary measure allowing eligible employers in participating rural communities to employ low-wage temporary foreign workers up to 15% of their workforce, rather than the usual 10%.

Work locations outside CMAs are also not subject to the unemployment-based refusal-to-process measure. This may create additional opportunities in smaller cities and rural communities, although all other LMIA requirements continue to apply.