LMIA Processing to Restart in 8 Key Regions by Q1 2026

LMIA processing is set to resume in several major Canadian regions starting January 9, 2026, marking an important shift for employers and foreign workers relying on the Temporary Foreign Worker Program (TFWP). The federal government has confirmed that low-wage Labour Market Impact Assessments (LMIs) will once again be accepted in eight additional regions, following a decline in unemployment rates in those areas below the critical 6% threshold.

This development reopens pathways for many foreign nationals who were previously unable to renew or apply for work permits due to regional unemployment restrictions. Cities such as Vancouver, Winnipeg, and Kingston are among the locations affected by this change, which is expected to have a noticeable impact on hiring plans in early 2026.

Why LMIA Processing Was Restricted

Under current federal policy, low-wage LMIA applications are processed only in regions with an unemployment rate below 6%. When unemployment is higher, the government pauses processing of low-wage LMIA applications to encourage employers to hire workers already in Canada.

In August 2024, this rule became stricter, with the government halting low-wage LMIA applications in Census Metropolitan Areas (CMAs) that remained at or above the 6% unemployment mark. This policy directly affects foreign workers because, without a positive or neutral LMIA, employers cannot support work permit applications or extensions under the low-wage stream of the TFWP.

Regions Reopening For Low-Wage LMIA Processing

As of January 9, 2026, eight additional regions now meet the unemployment requirement, allowing low-wage LMIA applications to resume. This follows updated labour market data showing improved employment conditions.

Notable examples include:

Halifax, where unemployment dropped from 6.1% to 5.2%
Moncton, which declined from 7.3% to 5.5%
Other regions, such as Vancouver, Winnipeg, and Kingston, also recorded rates below 6%

As of January 8, 2026, no new CMAs were added to the list of regions exceeding the 6% threshold, meaning no additional restrictions were introduced at this time. The next official update to the unemployment-based eligibility list is scheduled for April 10, 2026.

What Qualifies As A Low-Wage Position

A job offer falls under the low-wage LMIA stream if:

The wage is below 120% of the median wage for that region, or
The wage is lower than what the employer pays existing workers in similar roles with comparable experience.

If a position does not meet these criteria, it may fall under the high-wage LMIA stream instead, which is not subject to the same unemployment-based restrictions.

Occupations Exempt From Low-Wage Restrictions

Some occupations remain exempt from the low-wage LMIA pause, even in regions with higher unemployment. These exemptions are designed to protect essential industries and services.

Exempt roles include:

Primary agriculture occupations
Construction jobs
Food manufacturing roles
Hospital positions
Nursing and residential care roles
Certain in-home caregiver positions
Jobs that support permanent residence only, where no work permit is required
Short-term roles lasting 120 calendar days or less, if specific criteria are met

Foreign nationals targeting these occupations may still have viable LMIA options regardless of regional unemployment rates.

Using The High-Wage LMIA Stream As An Alternative

Employers in regions with unemployment rates of 6% or higher can still hire foreign workers by offering wages that meet or exceed provincial high-wage thresholds. When this happens, the LMIA application must be submitted under the high-wage stream of the TFWP.

Current provincial high-wage thresholds include:

Alberta: $36.00
British Columbia: $36.60
Manitoba: $30.16
New Brunswick: $30.00
Newfoundland and Labrador: $32.40
Northwest Territories: $48.00
Nova Scotia: $30.00
Nunavut: $42.00
Ontario: $36.00
Prince Edward Island: $30.00
Quebec: $34.62
Saskatchewan: $33.60
Yukon: $44.40

Meeting or exceeding these rates allows employers to bypass low-wage restrictions entirely.

What Foreign Workers Should Know

Foreign workers whose low-wage work permits cannot be extended due to LMIA restrictions must stop working once their status expires. However, they may apply for a visitor record to legally remain in Canada.

If they receive a qualifying job offer from another employer, they may be able to start working while their new application is being processed, provided all eligibility conditions are met.

Foreign nationals may also consider waiting three months for the next unemployment rate update if their CMA is currently ineligible.

How To Check If A Job Location Is Impacted

To determine whether a job offer falls within an affected region:

Visit the Census of Population website.
Enter the full postal code of the work location.
Check whether the location is listed as a Census Metropolitan Area (CMA)

If the location is a CMA with unemployment at or above 6%, low-wage LMIA processing will be paused for that quarter. If it is a Census agglomeration or outside the restricted CMA list, LMIA processing remains available.

Why This Matters For 2026

The resumption of LMIA processing in key regions reflects improving labour market conditions and creates renewed opportunities for employers and foreign workers alike. For many workers in sectors such as hospitality, food services, and caregiving, this change could mean the difference between maintaining status in Canada or being forced to leave.

Staying informed about quarterly unemployment updates is essential for both employers and employees planning LMIA-supported work permits in 2026.