Canada has expanded restrictions on low-wage Labour Market Impact Assessment applications to 30 census metropolitan areas after Employment and Social Development Canada updated its unemployment-rate table on October 9, 2026.
The revised rules apply to applications submitted from October 9, 2026, through January 7, 2027.
The next scheduled update is January 8, 2027.
The measure means Service Canada will generally refuse to process certain low-wage LMIA applications when the job is located in a census metropolitan area with an unemployment rate of 6 per cent or higher.
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What changed in the latest LMIA update
The number of restricted metropolitan areas increased from 26 during the previous quarterly period to 30 under the rates now in effect.
Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge moved onto the restricted list.
At the same time, Kamloops and Chilliwack moved off the list because their latest rates fell below the 6 per cent threshold.
The update is based on regional labour-market data from Statistics Canada’s Labour Force Survey.
| Location | October 9 rate | Result |
|---|---|---|
| Halifax | 6.1% | Restricted |
| Fredericton | 6.2% | Restricted |
| Kingston | 6.3% | Restricted |
| St. Catharines–Niagara | 6.5% | Restricted |
| Regina | 6.7% | Restricted |
| Lethbridge | 6.0% | Restricted |
| Kamloops | 3.6% | Eligible under the unemployment-rate rule |
| Chilliwack | 5.6% | Eligible under the unemployment-rate rule |
How the low-wage LMIA rule works
The restriction applies to certain low-wage positions located in a census metropolitan area where the applicable unemployment rate is at least 6 per cent when the LMIA application is submitted.
It is not a blanket ban on all foreign-worker applications in an affected city.
The measure is tied to the low-wage stream of the Temporary Foreign Worker Program and does not automatically prevent every employer from hiring a foreign national.
Employers must also consider whether the offered wage is below the applicable provincial or territorial wage threshold, since both conditions are relevant to the refusal-to-process policy.
Applications that are refused under the measure are not processed, and the employer is not charged the LMIA processing fee.
Which jobs may be exempt
Some occupations and sectors remain eligible for processing even when the work location is in a restricted metropolitan area.
- Primary agriculture occupations
- Certain construction positions
- Some food-manufacturing positions
- Jobs in hospitals
- Jobs in nursing and residential-care facilities
- Specific in-home caregiver occupations
- Positions supporting a permanent-residence application when no work permit application is involved
- Some genuinely temporary or highly mobile jobs lasting generally 120 calendar days or less
In-home caregiver applications in Quebec may also qualify for a specific exemption when the job involves care for a person with medical needs or a child whose usual caregiver cannot provide care for medical reasons.
Employers relying on an exemption must still meet the requirements attached to the relevant category and provide supporting documents where required.
What the change means for employers and workers
Employers in the six newly restricted cities may need to reassess recruitment plans for positions that fall within the low-wage stream.
A job offer that was eligible under the previous rate table may no longer qualify if the LMIA application is submitted on or after October 9 and the position is not covered by an exemption.
The quarterly system also means eligibility can change as regional unemployment rates move above or below the 6 per cent threshold.
Employers should confirm the exact work location using the government’s census geography tools before submitting an application.
A location classified as a census agglomeration rather than a census metropolitan area is treated differently under this specific refusal-to-process measure.
Workers should also be cautious about job offers that promise a work permit without explaining whether the employer can obtain the required LMIA.
An LMIA is generally an employer-side assessment showing that hiring a temporary foreign worker is justified after considering the Canadian labour market.
Other LMIA restrictions remain in place
The unemployment-rate rule is only one part of Canada’s broader tightening of the Temporary Foreign Worker Program.
Service Canada can also refuse to process applications when an employer exceeds the applicable cap on low-wage workers at a work location.
The standard cap is 10 per cent of the workforce, while certain sectors can qualify for a 20 per cent cap under specified conditions.
Separate restrictions also apply to some low-wage jobs in the economic regions of Montreal and Laval, live-in caregiver positions and employers whose previous LMIA applications were revoked for inaccurate or misleading information.
These measures are part of the federal government’s effort to reduce reliance on temporary foreign workers in areas where unemployment is elevated while preserving access for selected sectors facing labour shortages.
What happens next
The current unemployment-rate table remains in effect until January 7, 2027.
Employment and Social Development Canada has scheduled the next update for January 8, 2027, when some cities could move onto or off the restricted list depending on their updated labour-market data.
Until then, employers should use the October 9 table when determining whether a low-wage LMIA application can be processed.
Frequently Asked Questions
Which Canadian cities were newly affected by the low-wage LMIA restrictions?
Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge were added to the restricted list on October 9, 2026.
How many Canadian metropolitan areas are restricted under the latest update?
Thirty census metropolitan areas have unemployment rates of 6 per cent or higher under the table in effect from October 9, 2026.
Does the rule ban all foreign workers in those cities?
No. It applies to certain low-wage LMIA applications, and several sectors and job categories remain exempt.
How long will the current LMIA unemployment rates apply?
The current rates apply to applications submitted from October 9, 2026, through January 7, 2027. The next update is scheduled for January 8, 2027.
Can an employer appeal a refusal to process under this rule?
The application is not processed under the refusal-to-process policy. Employers should review eligibility, exemptions and the work location before submitting a new application or seeking professional advice.
Fact-Checked: Key dates, unemployment thresholds, affected metropolitan areas and exemptions were checked against the Government of Canada’s October 9, 2026 LMIA refusal-to-process update.
Disclaimer: LMIA eligibility depends on the specific job, wage, employer, work location and applicable exemptions, so applicants and employers should verify the current government requirements before acting.