As of January 2025, Canada’s Employment and Social Development Canada (ESDC) has updated its policy regarding the processing of Labour Market Impact Assessment (LMIA) applications under the low-wage stream of the Temporary Foreign Worker Program (TFWP). Specifically, LMIA applications for low-wage positions will not be processed in Census Metropolitan Areas (CMAs) where the unemployment rate is 6% or higher.

What Are Low-Wage LMIAs?

The low-wage stream of the TFWP is designed for employers looking to hire temporary foreign workers for positions offering wages below the provincial or territorial median hourly wage. While this program helps employers address labor shortages, it comes with stricter requirements to balance the need for foreign workers with opportunities for Canadian job seekers. Restrictions include limits on the proportion of low-wage temporary foreign workers an employer can hire and requirements for transition plans to reduce dependency on foreign labor.

Regions Affected by the New Policy

Under this policy, low-wage LMIA applications will not be processed in Census Metropolitan Areas (CMAs) where the unemployment rate is 6% or higher. The affected CMAs, based on unemployment rates as of January 10, 2025, include:

Census Metropolitan Area (CMA)Unemployment Rate
St. John’s, Newfoundland and Labrador6.0%
Saint John, New Brunswick6.1%
Montréal, Quebec6.2%
Oshawa, Ontario7.5%
Toronto, Ontario7.9%
Hamilton, Ontario6.3%
St. Catharines-Niagara, Ontario6.2%
Kitchener-Cambridge-Waterloo, Ontario7.3%
Guelph, Ontario6.2%
London, Ontario6.4%
Windsor, Ontario8.8%
Barrie, Ontario6.0%
Regina, Saskatchewan6.1%
Calgary, Alberta7.5%
Edmonton, Alberta6.8%

This list is updated quarterly, with the next update scheduled for April 4, 2025.

What Is a Census Metropolitan Area (CMA)?

A Census Metropolitan Area (CMA) is defined by Statistics Canada as an area consisting of one or more adjacent municipalities centered on a population center (core) with at least 100,000 residents, 50,000 or more of whom live in the core. CMAs are established for statistical purposes to track urbanized regions and their economic conditions.

To determine if a specific work location falls within an affected CMA, you can enter the complete postal code of the work location on the Census of Population website. The search results will indicate the corresponding CMA, allowing you to verify its status regarding LMIA processing.

Why This Policy Matters

This policy underscores Canada’s effort to balance the need for temporary foreign workers with the availability of local labor. By targeting regions with higher unemployment rates, the government aims to create more opportunities for Canadian residents while ensuring that employers in regions with genuine labor shortages can still access foreign talent where necessary.

Leave A Comment