Starting April 10, 2026, the federal government has stopped processing low-wage Labour Market Impact Assessments (LMIAs) in a number of Census Metropolitan Areas (CMAs) across Canada. This includes major centres such as Vancouver, Winnipeg, and Halifax. This is not a small adjustment. The list now covers 30 CMAs, up from 24 in the previous quarter. Access to the low-wage stream is tightening in urban areas where unemployment has moved above the threshold.

What changed this quarter

Each quarter, the government updates the list based on local unemployment rates. The working threshold remains at 6 percent. If a CMA crosses that line, low-wage LMIA applications are generally not processed. Some regions have moved back below that line and are now open again.

Processing resumes (April 10 to July 9):

• Lethbridge, Alberta (7.2% → 5.9%)

• Red Deer, Alberta (8.9% → 5.9%)

• Kamloops, British Columbia (6.6% → 5.2%)

• Chilliwack, British Columbia (7.3% → 5.7%)

At the same time, several regions have been added to the freeze list.

Processing paused (April 10 to July 9):

• Halifax, Nova Scotia (5.2% → 6.1%)

• Moncton, New Brunswick (5.5% → 7.4%)

• Fredericton, New Brunswick (5.2% → 6.5%)

• Montréal, Quebec (5.5% → 6.8%)

• Kingston, Ontario (5.6% → 6.2%)

• Vancouver, British Columbia (5.9% → 6.5%)

• Winnipeg, Manitoba (5.7% → 6.0%)

• and several others

One detail worth noting. Montréal remains effectively restricted due to a separate provincial moratorium in Quebec that runs until the end of 2026, regardless of federal updates.

The underlying rule employers cannot ignore

Everything comes back to the unemployment rate. If the job location is within a CMA at 6 percent or higher, a low-wage LMIA will not be processed unless a specific exemption applies. That check now sits at the front of every file. It is no longer something you review midway through preparation. For employers, this means timing matters. A submission that worked last quarter may not even enter processing today.

A brief note on the April 1 regulatory change

Earlier this month, the government also updated recruitment requirements. Employers must now complete 8 consecutive weeks of recruitment, instead of 4. There is also a separate requirement to target youth aged 15 to 30, in addition to existing underrepresented group efforts. 

This runs in parallel with the processing restrictions. Even in eligible regions, the preparation phase now takes longer. 

Practical options when a CMA is affected

When low-wage processing is not available, there are still a few paths to consider.

1. Consider moving a position into the high-wage stream

This depends on meeting the provincial wage threshold. For example:

• Nova Scotia: $30.00

• British Columbia: $36.60

• Ontario: $36.00

If the offered wage meets or exceeds the threshold, the application shifts out of the restricted stream.

2. Wait for the next quarterly update

The list resets on July 10, 2026. If unemployment drops below 6 percent, the same role may become eligible again.

3. Focus on exempt occupations

Certain roles are not subject to the refusal to process measure:

• Primary agriculture

• Construction

• Food manufacturing

• Hospitals and care facilities

• Some in-home caregiver roles

• Short-term positions under 120 days (if criteria are met)

4. Look outside CMAs

Rural areas are not subject to the same restriction. In some cases, employers in these areas can now hire up to 15 percent of their workforce under the low-wage stream, up from 10 percent.