Canada Expands LMIA Freeze to Vancouver Winnipeg Halifax

The federal government has expanded its restrictions on low-wage Labour Market Impact Assessments (LMIAs), with major cities like Vancouver, Winnipeg and Halifax now included in the latest processing freeze.

Effective April 10, the policy under the Temporary Foreign Worker Program halts the processing of low-wage LMIA applications in 30 census metropolitan areas across Canada where unemployment rates have reached six per cent or higher.

LMIAs are a key requirement for employers seeking to hire foreign workers, as they confirm there is a need for international labour and that no Canadian workers are available for the role.

The updated list marks an increase from the previous quarter, when 24 regions were affected. Cities newly added to the freeze include Montréal, Kingston and Peterborough, along with several regions in Atlantic Canada.

Meanwhile, some cities have been removed from the freeze due to improved labour market conditions. These include Lethbridge, Red Deer, Kamloops and Chilliwack, where LMIA applications will be processed again until the next review on July 10.

Under the policy, applications for low-wage positions in affected regions will not be processed unless exemptions apply. Employers may still proceed by offering wages that meet the high-wage threshold, which varies by province.

The decision is based on labour market conditions, with the government aiming to prioritize job opportunities for Canadian citizens and permanent residents in areas with higher unemployment.

For foreign workers, the freeze may limit job opportunities in affected cities, particularly for those seeking positions under the low-wage stream. Some may need to wait for the next quarterly update or explore roles in exempt sectors such as healthcare, agriculture, construction and food manufacturing.

Rural areas outside major metropolitan regions may offer more opportunities, as a separate policy allows employers in those regions to hire a higher percentage of low-wage foreign workers.

The quarterly review system means the list of affected cities can change regularly, depending on shifts in unemployment rates and labour demand across the country.

Courtesy: cicnews