Canada Work Permit Freeze Expands: Low-Wage LMIA Restrictions Now Include Vancouver, Winnipeg, and Halifax
Canada’s approach to managing temporary foreign worker applications continues to tighten as the federal government expands its quarterly restrictions on low-wage Labour Market Impact Assessments (LMIAs) under the Immigration, Refugees and Citizenship Canada Temporary Foreign Worker Program (TFWP).
As of April 10, new updates confirm that several major Census Metropolitan Areas (CMAs) including Vancouver, Winnipeg, and Halifax are now subject to a processing freeze on low-wage LMIA applications. This means employers in these cities will be unable to hire foreign workers under the low-wage stream unless specific exemptions apply.
Expansion of LMIA Processing Restrictions
The latest quarterly update shows an increase in the number of affected regions, with 30 CMAs now included in the low-wage LMIA refusal-to-process list. This is up from 24 in the previous quarter, signaling a broader tightening of labor market controls.
Under the updated framework, applications submitted for positions classified as low-wage in affected regions will not be processed by IRCC until the next scheduled review.
At the same time, a small number of regions have been removed from the restriction list, allowing low-wage LMIA processing to resume there temporarily. However, several of these areas remain closely monitored due to fluctuating unemployment rates.
LMIA Processing Update
Cities Added to the LMIA Freeze
As of April 10, low-wage LMIA applications will not be processed in the following major cities:
These restrictions are tied to rising unemployment rates in key urban areas, where the 6% threshold has triggered a pause on low-wage LMIA processing under the Temporary Foreign Worker Program.
Regions Where LMIA Processing Has Resumed
The following regions are now eligible for low-wage LMIA processing after recent labour market improvements:
Employers in these regions may continue submitting low-wage LMIA applications until the next quarterly review expected on July 10.
How the Low-Wage LMIA Freeze Works
Under current policy, IRCC Canada assesses unemployment rates across Canadian CMAs every quarter. If a region reports an unemployment rate of 6% or higher, low-wage LMIA applications under the TFWP are automatically refused processing.
This policy was introduced to ensure that job opportunities are first directed toward Canadian citizens and permanent residents during periods of higher local unemployment.
Employers are still able to apply under the high-wage LMIA stream, provided salary thresholds are met. Alternatively, they may need to adjust job offers or consider different recruitment strategies.
What This Means for Employers and Foreign Workers
For employers, the latest update reinforces the importance of checking local labour market data before submitting LMIA applications. A job location in a restricted CMA will result in refusal unless the position qualifies under an exemption category.
For foreign workers, the changes may limit job opportunities in major cities under the low-wage stream. However, options may still exist in:
Construction and infrastructure roles
Healthcare and long-term care facilities
Primary agriculture positions
Certain caregiver roles
Rural and non-CMA regions
Short-duration employment (under specific conditions)
In some cases, employers in rural areas may also benefit from temporary policy flexibility allowing a higher proportion of low-wage foreign workers.
Why Canada is Restricting Low-Wage LMIA Processing
The federal government’s ongoing adjustments aim to align the Temporary Foreign Worker Program with current economic conditions across Canada. By restricting low-wage LMIA processing in high-unemployment areas, IRCC Canada intends to reduce reliance on foreign labour where local workers are available.
Since the introduction of this policy in 2024, IRCC has released quarterly updates to ensure transparency for both employers and applicants navigating the system.
Final Outlook
With more cities like Vancouver, Winnipeg, and Halifax now affected, the low-wage LMIA landscape continues to tighten across Canada. Employers and foreign nationals will need to stay updated on quarterly changes and consider alternative pathways, including wage adjustments or relocation to eligible regions.
The next update is expected on July 10, when IRCC Canada will reassess unemployment rates and adjust the list of affected CMAs once again.
About the Author: Lauren Shannan is a Senior Immigration Consultant with 12 years of experience helping foreign nationals navigate their journey in Canada. With her extensive knowledge of immigration processes and policies, Lauren provides valuable insights to those looking to make Canada their new home.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For personalized advice, please consult with a licensed immigration professional.