Title: Canada Immigration News: Low-Wage LMIA Applications Now Paused in 24 Cities – What You Need to Know

Introduction:

As of April 4, 2025, Canada has officially announced that low-wage LMIA applications will no longer be processed in certain Census Metropolitan Areas (CMAs). This is part of the government’s ongoing efforts to address labour market dynamics and streamline the immigration process under the Temporary Foreign Worker Program (TFWP). If you are considering a work permit in Canada or are an employer looking to hire foreign workers, it’s crucial to understand how these changes may affect you.

In this blog post, we will explore the list of cities where low-wage LMIA applications are paused, what this means for employers and foreign workers, and how to ensure that your application is processed smoothly.

Why Are Low-Wage LMIA Applications Paused in Certain Cities?

The Canadian government has implemented this pause as part of a strategic approach to manage the demand for foreign workers in areas where the unemployment rate is already high. As of April 2025, low-wage LMIA applications will no longer be processed in 24 cities with an unemployment rate of 6% or higher. The goal of this policy change is to ensure that the Canadian labour market is not overly reliant on foreign workers for lower-wage jobs in regions with sufficient local workforce availability.

Which Cities Are Affected?

The pause on low-wage LMIA applications will apply to the following Census Metropolitan Areas (CMAs):

What Does This Mean for Employers and Foreign Workers?

1. Impact on Employers: Employers located in the affected CMAs will not be able to hire foreign workers for low-wage positions under the Temporary Foreign Worker Program (TFWP). Employers may consider the following options:
   
   • Increase the wage: If the job offer can be adjusted to fall within the high-wage stream of the TFWP, employers can still proceed with the LMIA application.
   • Wait for the next quarterly review: The government updates this list every three months. If the unemployment rate in a particular region decreases below 6%, low-wage LMIA applications may be processed again.
2. Impact on Foreign Workers: For foreign workers currently holding low-wage work permits, this change means that their work permits cannot be renewed unless the job offer falls under the high-wage stream or they meet other eligibility criteria. If your current work permit is tied to a low-wage position in one of these areas, you may be unable to extend your permit until the unemployment rate changes or you transition to a high-wage position.
3. Navigating the LMIA Process: If you are a foreign worker looking to apply for a work permit in one of the affected cities, consider focusing on regions that are not affected by the low-wage LMIA pause. You may also want to inquire about transitioning to high-wage positions or finding employers willing to adjust the wage rate.

What Can You Do If Your Job is in a CMA with an Unemployment Rate Above 6%?

If you’re in an affected CMA, here are your options:

1. Increase the Wage to Meet High-Wage Criteria: Employers in these regions can still proceed with the LMIA application by offering a higher wage that falls within the high-wage stream of the TFWP. This will ensure the application is eligible for processing.
2. Wait for the Quarterly Update: If you are currently working in a low-wage job under the TFWP in an affected CMA, you may choose to wait for the next update. The government reviews the unemployment rate every three months, and it’s possible that the rate will drop below 6%, allowing applications to be processed again.
3. Look for Jobs in Other Regions: Focus your job search on areas where low-wage LMIA applications are still being processed. These regions are not facing the same restrictions, and there may be more opportunities available.
4. Apply for a Visitor Record: If your work permit cannot be extended due to the LMIA pause, you can apply for a visitor record to stay in Canada while you explore other options. You will need to cease working, as you cannot continue working without a valid work permit.

What is a CMA?

A Census Metropolitan Area (CMA) is a large urban area with a population of at least 100,000, and at least 50,000 of those people must reside in the core of the urban area. CMAs are used by Statistics Canada to track demographic and economic trends.

What’s Next?

The Canadian government will continue to monitor unemployment rates and update the list of CMAs affected by low-wage LMIA restrictions every three months. The next update will come on July 11, 2025. Employers and workers are encouraged to stay informed and adjust their plans as needed.

Conclusion:

The pause on low-wage LMIA applications in 24 Canadian cities is a significant development in the Temporary Foreign Worker Program (TFWP). While this may affect many employers and foreign workers, there are still options to explore, including increasing wages, waiting for the quarterly updates, or looking for opportunities in other regions. By staying informed and prepared, employers and workers can navigate these changes successfully.

Stay updated on the latest Canada immigration policies and trends to ensure you make the best decisions for your career and immigration journey.

Latest Immigration News:

Canada’s approach to immigration supports community needs, economic objectives and humanitarian responsibilities. A key part of these responsibilities is Canada’s long-standing commitment to protecting the world’s most vulnerable, including people affected by the conflict in Sudan.

For more details, visit our official website for further information on immigration services in Canada.

For personalized assistance with your immigration journey, book a consultation with Aara Immigration Services Ltd. today.