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In April 2025, Canada is implementing new restrictions on the processing of low-wage Labour Market Impact Assessments (LMIAs). These measures are designed to align immigration policies with local labour market needs and prioritize employment opportunities for Canadian citizens and permanent residents in regions with higher unemployment rates.
Understanding the Policy
Effective April 4, 2025, employers in 24 Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher will no longer be able to submit applications under the low-wage stream of the Temporary Foreign Worker Program (TFWP).
Low-wage LMIAs are typically required when employers seek to hire temporary foreign workers for positions that pay less than the median wage in a given province or territory. In areas where unemployment remains elevated, the government is limiting such applications to encourage employers to first consider domestic workers.
Exempt Industries
Certain industries are exempt from these restrictions because of their critical importance to Canada’s economy and labour force. These include:
- Agriculture
- Construction
- Healthcare
- Food processing
Employers in non-exempt industries who wish to hire foreign workers may need to transition positions to the high-wage stream by offering compensation above the median provincial wage.
Affected Regions: 24 High-Unemployment CMAs
The restrictions apply to CMAs across multiple provinces, including Newfoundland and Labrador, New Brunswick, Quebec, Ontario, Alberta, and British Columbia.
Examples of affected regions include:
- St. John’s, NL – unemployment rate of 7.6%
- Peterborough, ON – highest unemployment rate on the list at 9.9%
- Toronto, ON – 8.6%
- Calgary, AB – 7.8%
- Vancouver, BC – 6.6%
The full list of impacted CMAs is subject to quarterly review. The next update is scheduled for July 11, 2025.
Implications for Employers and Foreign Workers
Employers
For employers, these restrictions mean that applications for low-wage foreign workers will no longer be processed in affected regions unless the industry is exempt. Options may include:
- Offering wages above the provincial median to transition into the high-wage stream.
- Expanding recruitment efforts within the Canadian labour market.
Employers should seek legal guidance before making adjustments to ensure compliance with immigration rules.
Foreign Workers
Foreign workers already in low-wage positions in affected CMAs may not be able to renew their work permits under this stream. However, options may exist depending on individual circumstances, such as transitioning to exempt sectors or relocating to CMAs where low-wage LMIA applications are still permitted.
Workers are strongly encouraged to review official Immigration, Refugees and Citizenship Canada (IRCC) updates and obtain professional legal advice.
Government’s Rationale
The federal government has stated that these measures are intended to balance immigration with domestic employment priorities. By reducing reliance on foreign workers in low-wage sectors within high-unemployment areas, Canada aims to ensure that job opportunities are first available to Canadian citizens and permanent residents.
Conclusion
The April 2025 LMIA restrictions represent a significant change in Canada’s approach to balancing foreign labour with domestic employment needs. Employers must adapt by either offering higher wages or recruiting domestically, while foreign workers should explore exempt industries or alternative regions where opportunities remain open.
Because the list of affected CMAs will be updated quarterly, all parties should remain attentive to new government announcements.
Frequently Asked Questions (FAQs)
1. What are Canada’s new low-wage LMIA restrictions?
Effective April 4, 2025, employers in 24 CMAs with unemployment rates of 6% or higher cannot submit low-wage LMIA applications. The policy is intended to prioritize domestic workers in high-unemployment areas.
2. Which regions are affected?
The restrictions apply to 24 CMAs across Canada, including St. John’s, Peterborough, Toronto, Calgary, and Vancouver. The list is reviewed and updated quarterly.
3. Which industries are exempt?
Agriculture, construction, healthcare, and food processing are exempt due to their critical labour needs.
4. How do these restrictions affect employers?
Employers in non-exempt industries must either raise wages above the provincial median to qualify under the high-wage stream or focus on hiring domestic workers.
5. What options are available for foreign workers?
Foreign workers in affected CMAs may not be able to renew their work permits under the low-wage stream. Options include seeking employment in exempt industries, relocating to other regions, or transitioning into high-wage roles.
6. Where can I find official updates?
For authoritative details and updates, visit Immigration, Refugees and Citizenship Canada (IRCC).
Disclaimer
This article is intended for general informational purposes only and does not constitute legal advice. Immigration law and policy are complex and subject to change. For advice about your specific circumstances, please consult a licensed immigration lawyer. For authoritative information, visit Immigration, Refugees and Citizenship Canada (IRCC).
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