Understanding the July 2025 Changes to Low-Wage LMIAs in Canada
The Canadian government has expanded the list of regions where low-wage LMIA applications are no longer processed. Discover how this impacts employers and workers, and learn about solutions like wage adjustments, alternative regions, or H&C options with Lyon Stern.
Canada Expands List of Regions Where Low-Wage LMIA Applications Are Restricted: What You Need to Know
As of July 11, 2025, the Canadian government has added new regions to its list of Census Metropolitan Areas (CMAs) where low-wage Labour Market Impact Assessments (LMIAs) under the Temporary Foreign Worker Program (TFWP) will not be processed. This expansion reflects a federal policy introduced in 2024, which prohibits processing low-wage LMIA applications in regions with unemployment rates of 6% or higher.
At Lyon Stern, we understand how critical LMIA approvals are for both employers relying on foreign workers and individuals seeking work permits. In this article, we’ll explore the ramifications of these changes, alternative strategies available to employers and workers, and how our firm can assist you in navigating these challenges.
What Are Low-Wage LMIAs?
Under the TFWP, employers must apply for an LMIA to hire foreign workers. An LMIA demonstrates that hiring a foreign worker will not negatively impact Canada’s labor market.
Low-wage LMIAs apply to positions where the wage offered falls below the median hourly wage in the province or territory. These jobs are often in sectors like hospitality, retail, manufacturing, and agriculture.
Regions Now Ineligible for Low-Wage LMIA Applications
As of July 11, 2025, 26 CMAs are deemed ineligible for low-wage LMIA processing due to unemployment rates exceeding 6%. This is an increase from the 24 regions listed in the previous quarter.
The Newly Updated List of Affected CMAs
The regions now included are:
- Newfoundland and Labrador: St. John’s
- Nova Scotia: Halifax
- New Brunswick: Moncton, Saint John, Fredericton
- Quebec: Montréal
- Ontario: Ottawa-Gatineau, Kingston, Belleville-Quinte West, Peterborough, Oshawa, Toronto, Hamilton, St. Catharines-Niagara, Kitchener-Cambridge-Waterloo, Brantford, London, Windsor, Barrie
- Alberta: Calgary, Edmonton
- British Columbia: Kamloops, Chilliwack, Abbotsford-Mission, Vancouver, Nanaimo
Regions like Peterborough, Oshawa, and Windsor have particularly high unemployment rates, exceeding 9%.
Past Regions No Longer Affected
Notably, some regions previously on the list (e.g., Drummondville, Guelph, Kelowna, and Red Deer) are now eligible again due to improved unemployment rates.
Implications for Employers and Workers
For Employers
If your business operates in one of the affected regions, you will not be able to hire foreign workers under the low-wage stream of the TFWP. This could disrupt staffing plans, especially in industries heavily reliant on low-wage labor.
For Workers
Foreign workers applying for low-wage LMIA-based work permits in these regions may face denial or delays. Additionally, those seeking to renew work permits under the low-wage stream in these CMAs will also be impacted.
What Are Your Options?
1. Adjusting the Wage Offer
If feasible, employers can increase the offered wage to meet the provincial or territorial median wage threshold. This would allow the application to qualify under the high-wage LMIA stream, which is not restricted by regional unemployment rates.
2. Exploring Alternative Regions
Employers may consider relocating job opportunities to CMAs where low-wage LMIA applications are still being processed. Workers can also focus their job search on eligible regions.
3. Targeting Exempt Occupations
Certain occupations, particularly those in primary agriculture, food manufacturing, construction, healthcare, and in-home care, are exempt from these restrictions. Employers and workers in these sectors may still qualify for low-wage LMIA applications.
4. Humanitarian and Compassionate Applications (H&C)
For individuals facing removal or losing status due to these LMIA restrictions, applying for permanent residency under humanitarian and compassionate grounds may be an option. This pathway is especially relevant for workers with deep ties to Canada, such as those with Canadian-born children or long-term integration into Canadian society.
How Lyon Stern Can Help
Navigating these changes can be complex, but Lyon Stern is here to assist. Here’s how we can help:
- Strategic Planning: We analyze your situation and recommend the best course of action, whether it’s wage adjustments, job relocation, or exploring exemptions.
- LMIA Applications: We assist employers in preparing strong LMIA submissions, ensuring compliance with the latest regulations.
- H&C Applications: For workers facing challenges due to these restrictions, we provide expert guidance on applying for H&C PR applications.
- Maintained Status Support: We help workers maintain legal status by filing timely applications for work permit extensions or visitor records.
Take Action Today
The July 2025 update to the low-wage LMIA restrictions has significant implications for employers and workers in affected regions. Proactively addressing these changes is critical to avoiding disruptions.
Contact Lyon Stern today for a consultation. Our experienced team can guide you through the complexities of LMIA applications and alternative immigration pathways, ensuring your goals remain on track despite these new restrictions.
By partnering with Lyon Stern, you gain access to personalized legal strategies and years of experience in navigating Canada’s evolving immigration landscape. Let us help you move forward with confidence.
