On July 11, 2025, Canada’s federal government released a significant quarterly update to the unemployment rates for Census Metropolitan Areas (CMAs) and made notable adjustments to the Temporary Foreign Worker Program (TFWP).
New LMIA Restrictions: What You Need to Know
From July 11 to October 9, 2025, the government will no longer process low-wage Labour Market Impact Assessments (LMIAs) in 20 CMAs where unemployment rates are 6% or higher. This change affects thousands of employers and foreign workers across Canada.
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Whether you’re a business owner who relies on the TFWP or a foreign worker applying for a Canadian work permit, this change marks a major shift in Canada’s labour market strategy. Let’s break down the updated list of affected regions, what it means for employers and workers, and how to navigate these changes.
What’s Changing in Canada’s Work Permit Policies?
A Labour Market Impact Assessment (LMIA) is a crucial document that employers need to hire foreign workers under the TFWP. It ensures that hiring foreign workers does not harm Canadian job opportunities.
Since September 26, 2024, Canada has imposed stricter rules on low-wage LMIAs, blocking applications in CMAs where the unemployment rate is 6% or higher. Without an approved LMIA, employers cannot hire foreign workers for low-wage roles, and current workers in these areas cannot renew their permits.
This latest update on July 11, 2025, blocks low-wage LMIAs in 20 CMAs until October 9, 2025. In this article, we’ll look at the updated unemployment rates, the regions affected, and provide practical strategies for both employers and workers.
Updated Unemployment Rates: Which CMAs Are Affected?
The July 11 update presents the latest unemployment rates for CMAs—urban areas with populations of at least 100,000. Below is the list of 20 CMAs where low-wage LMIA applications are blocked, with a comparison to previous quarters:
| Census Metropolitan Area | Unemployment Rate (July 11 – Oct 9, 2025) | Unemployment Rate (Apr 4 – Jul 10, 2025) | Unemployment Rate (Jan 10 – Apr 3, 2025) |
|---|---|---|---|
| St. John’s, Newfoundland | 7.2% | 7.6% | 6.0% |
| Halifax, Nova Scotia | 6.2% | 4.8% | 4.6% |
| Moncton, New Brunswick | 6.4% | 5.4% | 5.4% |
| Saint John, New Brunswick | 7.4% | 7.7% | 6.1% |
| Fredericton, New Brunswick | 6.2% | 6.9% | N/A* |
| Montréal, Quebec | 6.9% | 6.7% | 6.2% |
| Ottawa-Gatineau, Ontario/Quebec | 6.4% | 5.3% | 5.4% |
| Kingston, Ontario | 7.2% | 7.2% | 5.7% |
| Belleville – Quinte West, Ontario | 7.1% | 5.6% | N/A* |
| Peterborough, Ontario | 9.9% | 9.9% | 4.5% |
| Oshawa, Ontario | 9.2% | 8.0% | 7.5% |
| Toronto, Ontario | 8.9% | 8.6% | 7.9% |
| Hamilton, Ontario | 6.6% | 7.3% | 6.3% |
| St. Catharines-Niagara, Ontario | 6.4% | 7.7% | 6.2% |
| Kitchener-Cambridge-Waterloo, Ontario | 6.9% | 8.5% | 7.3% |
| Brantford, Ontario | 6.8% | 7.2% | 4.2% |
| London, Ontario | 6.9% | 5.5% | 6.4% |
| Windsor, Ontario | 11.0% | 9.3% | 8.8% |
| Barrie, Ontario | 7.3% | 7.5% | 6.0% |
| Nanaimo, British Columbia | 7.3% | 6.0% | N/A* |
| Vancouver, British Columbia | 6.3% | 6.6% | 5.9% |
| Chilliwack, British Columbia | 6.3% | 5.9% | N/A* |
| Kamloops, British Columbia | 8.7% | 7.1% | N/A* |
| Calgary, Alberta | 7.3% | 7.8% | 7.5% |
| Edmonton, Alberta | 7.6% | 7.3% | 6.8% |
*Note: N/A means the CMA was not listed in the unemployment rate table for those periods.
Key Insights from the Updated Unemployment Data
- Decrease in Affected CMAs: The number of CMAs with unemployment rates of 6% or higher has decreased from 24 to 20. Areas like Abbotsford-Mission, Guelph, and Kelowna are now below the 6% threshold, allowing low-wage LMIA processing to resume.
- New Additions: CMAs like Halifax (6.2%), Moncton (6.4%), and Ottawa-Gatineau (6.4%) have crossed the 6% threshold, making them newly restricted areas.
- Unemployment Spikes: Windsor (11.0%) saw a sharp increase in its unemployment rate, followed by Oshawa (9.2%) and Peterborough (9.9%).
- Regional Improvements: Calgary, Hamilton, and St. Catharines-Niagara saw a decline in unemployment rates, though they remain above the 6% threshold.
- Eligible Regions: Areas like Victoria (4.1%), Saskatoon (4.6%), and Québec City (4.1%) have unemployment rates below 6%, making them ideal targets for low-wage LMIA applications.
Why Does This Matter? Understanding the Bigger Picture
The LMIA restrictions are part of Canada’s broader strategy to tackle ongoing economic issues like post-pandemic recovery, inflation, and housing shortages. The key objectives are:
- Protecting Local Workers: By prioritizing Canadian workers in regions with high unemployment, the government aims to prevent further job losses in sectors like manufacturing and tech.
- Redistributing Labour Demand: Encouraging hiring in rural areas and Census Agglomerations is designed to stimulate economic growth outside major urban centres. However, it risks causing labour shortages in cities.
- Economic Pressures: High unemployment in urban areas like Toronto and Vancouver increases social and economic challenges, especially due to inflation and housing shortages.
- Immigration Reforms: The 2025–2027 Immigration Levels Plan aims to reduce temporary foreign workers by limiting TFWP work permits to 82,000 annually, decreasing the proportion of temporary residents in Canada.
Implications for Employers
The July 11 update brings several challenges for employers in the affected CMAs:
- Hiring Restrictions: Employers in CMAs like Windsor and Toronto will be unable to apply for low-wage LMIAs, forcing them to depend on local talent.
- Permit Expiry Issues: Workers in affected regions cannot renew their low-wage permits, which may lead to workforce disruptions.
- Increased Costs: Employers may have to raise wages to meet the high-wage stream threshold (20% above the provincial median) since low-wage LMIAs are no longer available.
- Sector-Specific Challenges: Industries like hospitality and retail could face severe disruptions in urban centres.
What Can Employers Do?
- Switch to High-Wage Stream: Pay above the provincial median + 20% to qualify for the high-wage stream.
- Target Eligible Regions: Hire in regions with lower unemployment rates, such as Victoria, Saskatoon, or Québec City.
- Leverage Exempt Sectors: Agriculture, healthcare, food processing, and construction sectors may still apply for low-wage LMIAs.
- Increase Local Recruitment: Prioritize Canadian workers or those from underrepresented groups to meet TFWP requirements.
Implications for Foreign Workers
For foreign workers, the update brings challenges, especially for permit renewals:
- Permit Expiry: If your permit expires in an affected region, you cannot renew it unless your employer qualifies for a high-wage LMIA.
- Limited Job Opportunities: In high-unemployment CMAs, finding low-wage work may be challenging.
- Economic Instability: Expiring permits could lead to financial stress, particularly in urban centres.
What Can Foreign Workers Do?
- Target Low-Unemployment CMAs: Focus on regions with lower unemployment, such as Victoria or Saskatoon.
- Negotiate for Higher Wages: Ask your employer to increase wages to meet the high-wage threshold or transfer you to a qualifying CMA.
- Explore Exempt Sectors: Consider sectors that are exempt from the low-wage LMIA ban.
- Stay Updated: Monitor future updates, especially for borderline CMAs like Vancouver.
What’s Next?
The July 11 update signals a shift in Canada’s labour market strategy. The next update on October 10, 2025, will reveal whether the government opens up more CMAs for low-wage LMIA processing or imposes tighter restrictions. The coming months will be crucial for both employers and foreign workers to navigate these ongoing changes.
