After months of limited access, low-wage LMIA processing is set to reopen in several major Canadian regions in early 2026. Beginning January 9, 2026, the federal government will once again accept and process low-wage Labour Market Impact Assessments (LMIAs) in eight additional regions, including Vancouver, Winnipeg, Halifax, and Kingston. This shift follows a drop in regional unemployment rates, bringing these cities back within eligibility thresholds under the Temporary Foreign Worker Program (TFWP).

Why Was LMIA Processing Paused in the First Place?

Under current federal policy, low-wage LMIAs are only processed in regions where the unemployment rate is 6% or higher. When unemployment falls below that level, employers in those areas temporarily lose access to the low-wage stream—regardless of ongoing labour shortages. Over the past quarter, several regions that were previously restricted have seen their unemployment rates fall below this benchmark, triggering the reopening of LMIA processing.

What This Means for Employers and Foreign Workers

A positive or neutral LMIA is a prerequisite for most employer-specific work permits under the TFWP. Without it, foreign nationals generally cannot apply for or renew their work permits. With low-wage LMIA processing resuming in these regions, employers will again be able to submit new LMIA applications for eligible low-wage positions, support work permit extensions for existing foreign workers and address persistent labour shortages that could not be filled locally. For foreign workers, this change reopens pathways that were effectively frozen during the latter part of 2025.

Regions Returning to Eligibility in Q1 2026

As of January 8, 2026, no new regions were added to the restricted list. However, several regions were removed due to declining unemployment rates, making them eligible once again for low-wage LMIA processing:

Halifax, NS: 6.1% → 5.2%

Moncton, NB: 7.3% → 5.5%

Saint John, NB: 7.3% → 5.8%

Fredericton, NB: 6.7% → 5.2%

Montréal, QC: 6.7% → 5.5%

Kingston, ON: 6.6% → 5.6%

Winnipeg, MB: 7.3% → 5.7%

Vancouver, BC: 6.8% → 5.9%

Employers in these areas were unable to access low-wage LMIA processing during the final quarter of 2025. That restriction will now be lifted for the first quarter of 2026.

What to Watch Next

The federal government updates the regional eligibility list quarterly. The next review is expected on April 10, 2026, which could result in further additions or removals depending on labour market conditions. For employers and foreign workers alike, this underscores the importance of timing. LMIA eligibility can change quickly, and planning around these updates is becoming just as important as meeting the program requirements themselves.