LMIA Processing Resumes in Key Canadian Cities in 2026: What It Means for Foreign Workers and Employers

Canada has officially announced a major update to its Temporary Foreign Worker Program (TFWP) that will significantly impact employers and foreign workers relying on low-wage Labour Market Impact Assessments (LMIAs).

Starting January 9, 2026, the federal government will resume processing low-wage LMIA applications in seven Canadian regions, including major labour markets such as Vancouver, Winnipeg, and Halifax

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. This change opens new opportunities for work permits and long-term permanent residence (PR) pathways across Canada.

Let’s break down what this update means—and how foreign nationals can turn this policy shift into a strategic immigration opportunity.

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Why Canada Paused Low-Wage LMIA Processing

In August 2024, Immigration, Refugees and Citizenship Canada (IRCC) paused the processing of low-wage LMIA applications in Census Metropolitan Areas (CMAs) where the unemployment rate reached 6% or higher

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The goal?

To encourage employers to hire locally available Canadian workers in regions experiencing higher unemployment.

Under the TFWP, foreign workers cannot apply for or renew a work permit without a positive or neutral LMIA, making this policy particularly impactful for both employers and employees.

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Regions Where Low-Wage LMIA Processing Will Resume in Q1 2026

As of January 9, 2026, low-wage LMIA applications will again be accepted in the following regions due to improved labour market conditions

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Newly Eligible CMAs

• Vancouver, BC (Unemployment: 6.8% → 5.9%)

• Winnipeg, MB (7.3% → 5.7%)

• Halifax, NS (6.1% → 5.2%)

• Kingston, ON (6.6% → 5.6%)

• Moncton, NB (7.3% → 5.5%)

• Saint John, NB (7.3% → 5.8%)

• Fredericton, NB (6.7% → 5.2%)

???? Important: Job offers in these regions were previously ineligible but are now valid for low-wage LMIA processing in Q1 2026.

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Regions Still Ineligible for Low-Wage LMIA Processing

Despite improvements in some labour markets, several major Canadian cities remain ineligible for low-wage LMIA processing due to unemployment rates above 6%

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Notable Ineligible CMAs Include:

• Toronto

• Ottawa-Gatineau

• Calgary

• Edmonton

• Montreal (special provincial freeze)

• Kitchener-Waterloo

• Hamilton

• Windsor

Quebec Exception

Even though Montreal’s unemployment rate dropped below 6%, Quebec continues its moratorium on low-wage LMIA processing in Montreal and Laval until December 31, 2026

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What Counts as a Low-Wage LMIA?

A job is classified under the low-wage stream if the wage offered:

• Is below 120% of the regional median wage, or

• Falls below what the employer pays existing employees in the same role and location

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Certain occupations remain exempt from the freeze, including:

• Primary agriculture

• Construction

• Select frontline healthcare roles

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Options for Employers in High-Unemployment Regions

If your business is located in an ineligible CMA, there are still pathways forward.

Option 1: Switch to the High-Wage LMIA Stream

Employers can increase wages to meet provincial high-wage thresholds, shifting the application into the high-wage stream of the TFWP

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Example:
An employer in Toronto offering $28/hour could raise wages to $36/hour, qualifying the position for high-wage LMIA processing.

Option 2: Wait for the Next Quarterly Update

Unemployment rates are reassessed every quarter. The next update is expected on April 10, 2026.

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What Foreign Workers Can Do Right Now

1. Target LMIA-Eligible Regions

Foreign workers should prioritize job searches in regions where low-wage LMIAs are currently processed, such as Vancouver or Halifax.

2. Focus on LMIA-Exempt Occupations

Some jobs remain unaffected by the pause, including:

• Healthcare support roles

• Construction trades

• Food manufacturing

• In-home caregivers

• Short-term roles (120 days or less)

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3. Maintain Legal Status

Workers unable to extend permits must stop working but may apply for a visitor record to remain in Canada legally.

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Real-Time Use Case Examples

International Graduate

An international student working in Vancouver retail can now secure an LMIA-supported work permit, gain Canadian experience, and later qualify under Express Entry – Canadian Experience Class (CEC).

Healthcare Worker

A nurse aide in Halifax benefits from LMIA exemptions and builds experience toward Provincial Nominee Programs (PNPs) in Atlantic Canada.

Skilled Construction Worker

A construction labourer in Winnipeg continues employment despite LMIA pauses elsewhere, strengthening eligibility for Manitoba PNP.

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How LMIA Work Experience Supports PR Pathways

Canadian work experience gained through an LMIA-based work permit plays a crucial role in PR programs such as:

Express Entry

• Boosts CRS score

• Meets CEC eligibility

• Supports category-based draws

Provincial Nominee Programs (PNPs)

• Many provinces prioritize candidates with local job offers

• Express Entry-aligned PNPs offer 600 additional CRS points

Atlantic Immigration Program (AIP)

• Particularly relevant for Halifax, Moncton, and Saint John

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How to Check If Your Job Location Is Impacted

To confirm eligibility:

1. Visit the Census of Population website

2. Enter the job’s postal code

3. Check whether it falls under a CMA or Census Agglomeration

4. Compare it with the official ineligible CMA list

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Final Thoughts: A Window of Opportunity in 2026

The resumption of low-wage LMIA processing in key Canadian cities is great news for foreign workers and employers alike. With strategic planning, this policy update can be a stepping stone toward Canadian permanent residence through Express Entry, PNPs, or regional programs.

✨ If you’re working in—or planning to move to—an eligible region, now is the time to act. Canada continues to welcome skilled and essential workers, and the right move today could shape your future tomorrow.