In a major pivot for Canada’s Temporary Foreign Worker Program (TFWP), Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC) have confirmed that low-wage LMIA processing resumes in 2026 for eight major urban centres.
Effective January 9, 2026, employers in cities like Vancouver, Winnipeg, and Halifax can once again submit Labour Market Impact Assessment (LMIA) applications for the low-wage stream. This decision follows a quarterly review of labour market data, which revealed that unemployment rates in these specific Census Metropolitan Areas (CMAs) have dropped below the critical 6% threshold.
For employers struggling with domestic recruitment and foreign workers waiting for work permit approvals, this is the most significant TFWP update of the year.
The 8 Regions Where Low-Wage LMIA Processing Resumes
As of Q1 2026, the freeze on low-wage LMIAs has been lifted in the following Census Metropolitan Areas (CMAs). If your business or job offer is located here, you are now eligible to apply:
- Vancouver, British Columbia
- Winnipeg, Manitoba
- Halifax, Nova Scotia
- Montréal, Quebec
- Kingston, Ontario
- Moncton, New Brunswick
- Saint John, New Brunswick
- Fredericton, New Brunswick
Note: This eligibility window is valid until the next quarterly update scheduled for April 10, 2026. Employers are encouraged to file applications immediately before data is reassessed.
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Understanding the “6% Rule” and TFWP Restrictions
Why were these regions frozen, and why are they opening now?
In late 2024 and 2025, the federal government paused low-wage LMIA processing in any CMA with an unemployment rate of 6% or higher. This measure was designed to prioritize Canadian workers in regions where jobs were scarce.
However, recent data confirms that the eight regions listed above have seen their unemployment rates drop below 6% (e.g., Halifax dropped to 5.2%), signaling a tighter labour market and a renewed need for international talent.
What counts as a “Low-Wage” position? A position is considered low-wage if the offered salary is below the provincial/territorial median hourly wage.
Crucial Update for Caregivers and Exempt Sectors
At Canada Caregiver Jobs, we understand that many of our readers work in healthcare and home support. It is vital to understand how this news affects you.
While the reopening of these 8 cities is great news for the retail, hospitality, and food processing sectors, Caregivers remain in a privileged position.
Even in regions where the LMIA freeze remains in effect (such as Toronto or Calgary), specific occupations are EXEMPT from the freeze. You can still process LMIAs for:
- In-Home Caregivers (NOC 4411/4412 equivalent)
- Healthcare & Nursing Facilities
- Primary Agriculture
- Construction
- Food Processing & Manufacturing
If you are hiring a caregiver, you likely do not need to worry about the 6% unemployment rule, regardless of where you live. However, the general reopening of the TFWP in cities like Vancouver and Halifax signals a broader easing of restrictions that may speed up overall processing times.
Regions Where the LMIA Freeze Remains (Ineligible Areas)
While 8 cities have reopened, 24 CMAs remain ineligible for low-wage LMIA processing because their unemployment rates remain at or above 6%. Major hubs still affected include:
- Toronto, Ontario (Unemployment rate: 7.5%)
- Calgary, Alberta (Unemployment rate: 6.3%)
- Edmonton, Alberta (Unemployment rate: 6.9%)
- Ottawa-Gatineau (Unemployment rate: 6.8%)
- Windsor, Ontario
- Hamilton, Ontario
If you are an employer in these regions seeking low-wage workers (outside of exempt sectors like caregiving), your application will not be processed until the local unemployment rate drops.
Strategic Advice for Employers and Workers in 2026
With the low-wage LMIA processing resumes 2026 update, competition for work permits will increase. Here is how to stay ahead:
- Act Fast: You have a three-month window (Jan 9 – April 10) to submit applications in the newly opened regions before the next review.
- Check Wages: Ensure your offered wage meets the prevailing regional rates. Employers offering wages above the median can apply via the High-Wage Stream, which is not subject to these regional freezes.
- Verify Location: Use the Postal Code lookup on the Job Bank or Census site to confirm if your business falls inside a specific CMA boundary.
Frequently Asked Questions (FAQ)
Q: When does the low-wage LMIA processing resume in Vancouver? A: Processing resumed effective January 9, 2026. Employers in Vancouver can now submit applications for low-wage positions.
Q: Are caregivers affected by the LMIA freeze in 2026? A: Generally, no. Select in-home caregiver positions and jobs in healthcare facilities are exempt from the refusal to process, even in regions with high unemployment.
Q: Which cities are included in the January 2026 LMIA update? A: The eight reinstated cities are Vancouver, Winnipeg, Halifax, Kingston, Moncton, Saint John, Fredericton, and Montréal.
Q: When is the next TFWP unemployment rate update? A: The government reviews this data quarterly. The next update is scheduled for April 10, 2026.
Need Help With Your LMIA?
Navigating the TFWP changes in 2026 is complex. Whether you are an employer in a reopened region like Halifax or a family seeking a caregiver in Toronto, ensure your application is compliant.
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