Canada LMIA Update 2026: New Unemployment Rates Now in Effect

New Canadian unemployment rates by CMA related to Canada’s TFWP are now effective. The latest CMA unemployment rates will be applied for all the low-wage LMIA applications filed between April 10, 2026, and July 9, 2026.

There is a substantial tightening in comparison with the previous period.

This period only includes 11 CMAs that have an unemployment rate under 6%, which was 17 last period, when the new rules were introduced.

Ten CMAs that were eligible for low-wage LMIA applications in the previous period have exceeded 6% and can no longer be selected.

On the other hand, there were only four CMAs that changed their status to be eligible this period after being ineligible previously.

It is very important to consider this change for both employers and TFWs in Canada.

Why CMA Unemployment Rates Determine LMIA Outcomes

It should be mentioned that the LMIA processing by the federal government is linked to the rate of unemployment at a specific level (the Census Metropolitan Area).

In the case where the unemployment rate in a certain CMA increases above 6%, ESDC will not process LMIA applications in relation to the low-wage work performed in the location within the area.

This measure is taken to protect access to the domestic labour market for citizens of Canada and permanent residents of areas experiencing high levels of unemployment.

For businesses employing temporary foreign workers in entry-level and hourly jobs, the restricted CMA translates into closure of the route of employing such employees.

For potential employees who apply for a work permit under an employer’s application while being in another country or even residing in Canada, the restricted CMA could jeopardize the entire application procedure.

The 6% Threshold That Blocks Low-Wage LMIA Applications

Effective September 26, 2024, the ESDC has applied the refusal to process policy toward applications of low-wage LMIA in areas with high unemployment.

The criteria are simple:

Applications will be refused to process if the offer wage is lower than the provincial/territorial median hourly wage and the location of employment is in a CMA area with an unemployment rate of 6% or more at the time of the submission.

There is nothing subjective about this criterion or score here.

It is a mandatory administrative bar based on the quarterly unemployment rate data published by the ESDC.

New rates are provided every quarter. The current rates are valid till the next round on July 10, 2026.

How To Check If Your Work Location Falls In A Restricted CMA

Employers should first ensure that the location of the employment in question falls within a CMA that is experiencing unemployment levels of 6% or more before they can submit the LMIA application.

The procedure involves two parts.

First, you need to input the full postal code of the employment location into the website of Statistics Canada Census of Population geography search tool.

When the search returns results, locate the geographic level called “Census Metropolitan Area” or “Census Agglomeration”.

Where there is no mention of the geographic level called “Census Metropolitan Area” in the search results, the employment location is outside a CMA, and the LMIA application is still eligible for processing.

Even where there is a mention of the geographic level called “Census Agglomeration”, the LMIA application is still eligible for processing.

In cases where the geographic level referred to is “Census Metropolitan Area”, the employer needs to determine the exact unemployment rate in that particular CMA by referring to the table of unemployment rates for CMAs provided by ESDC below.

Any CMA with unemployment rates of 6% or higher qualifies for the application of this policy.

Complete CMA Unemployment Rate Table For April To July 2026

Table 1 below outlines the current unemployment rates for each quarter from April 10, 2026, to July 9, 2026, relative to the two preceding quarters.

Unemployment rates for CMAs that equal or exceed 6% have been highlighted because they are currently subject to restrictions when applying for LMIA applications involving low-wage positions.

The next expected review of the table is set for July 10, 2026.

Only 11 CMAs Now Eligible For Low-Wage LMIAs

This particular round of renewal signifies a significant cut in the number of regions that will be able to employ workers through the TFWP Low Wage Stream.

For the January 2026 cycle, a total of 17 CMAs were considered ineligible because they had unemployment rates exceeding 6%.

However, the list now comprises 11 CMAs, since 30 out of the 41 CMAs in the country have now been categorized as ineligible due to their increasing unemployment rates.

These include cities like Montréal, Vancouver, Halifax, and Winnipeg.

10 CMAs Newly Restricted This Quarter

The ten regions listed below had a rate below the 6% threshold in the previous quarter but are now above the threshold, effectively suspending the processing of LMIA applications for low-wage occupations from April 10, 2026, to July 9, 2026.

The increase in Montréal’s rate from 5.5% to 6.8% is especially significant since it is Canada’s second-largest urban region and plays a prominent role in employer-sponsored foreign worker recruitment.

Vancouver’s transition back into restriction status at 6.5%, when it was previously at 5.9%, blocks off yet another key labour market on the west coast.

The entire province of New Brunswick is now under restriction, as all four CMAs are included.

4 CMAs Newly Eligible This Quarter

Four CMAs fell to less than 6%, making their LMIA process eligible once more for employers.

The fall of Red Deer from 8.9% to 5.9% marks the biggest fall in one quarter on the list.

Two more CMAs in British Columbia made significant reductions, falling back to below the cutoff point.

Lethbridge joins the new quartet of CMAs, reducing from 7.2% to 5.9%.

CMAs That Remain Eligible (Still Below 6%)

There are seven CMAs that have been below 6% last quarter and continue to satisfy the eligibility criteria for this cycle.

Quebec City continues to be the CMA with the lowest unemployment rate at 3.3%.

Victoria continues to stay well below the 6% threshold at 4.9%, thereby remaining available for employers throughout the year.

The unemployment rate in Saskatoon decreased from 5.8% to 5.5%. This keeps the province’s second largest city available for employers seeking low wage employees.

Thunder Bay’s unemployment rate increased from 4.2% to 5.9%, which continues to fall below the cut-off point although dangerously near the 6% mark.

What This Means For Foreign Workers

Foreign workers applying for employer-sponsored work permits need to know the impact of the change on their position.

Opportunities to work for positions related to the low-wage category of LMIAs will decrease as employers in these areas will not be able to benefit from the low-wage TFWP anymore.

With regard to the four new eligible CMAs, employer access to this program has been opened, creating a new opportunity to hire workers.

Unemployment rate must be measured at the time of application for an LMIA, and not at the time of offering the position.

Timing during the quarterly process becomes very important for that matter.

Those workers who already possess a valid work permit in a restricted area would not be impacted by this policy change.

This policy only affects the issuance of LMIA for new applications under the low-wage stream category and does not affect current permits.

Employees interested in job opportunities from employers in CMAs that have been restricted should inquire about whether the employers plan to apply through the high-wage stream or any other exempted industry.

Those interested in applying for jobs in CMAs that became eligible in 2023, such as Lethbridge, Red Deer, Kamloops, or Chilliwack, should act quickly because the rates will be revised again in the next revision on July 10, 2026.

Canadian residents who may be seeking employment opportunities while residing within Canada on any valid status, including study or visitor records, must seek advice from an authorized immigration practitioner before accepting any employer-sponsored jobs in CMAs.

Sector Exemptions That Still Allow LMIA Processing

However, even in those CMAs where the unemployment rate is 6% or above, LMIA applications for specific occupations within various industries are still exempt from such refusal-to-process treatment.

Occupations in primary agriculture continue to be processed regardless of the CMA unemployment rate.

Occupations in construction NAICS 23 are also exempt from the policy.

Also exempt are occupations in food manufacturing NAICS 311.

Occupations in hospitals NAICS 622 and nursing and residential care facilities NAICS 623 are exempt.

Occupations in specific in-home caregiver occupations NOC 31301, 32101, 44100, and 44101 continue to be processed.

Additionally, occupations that are short-term and/or highly mobile, lasting up to 120 days or less, are exempt upon providing a written justification by the employer together with the LMIA application.

Employers who wish to claim any of these exemptions are advised to visit the official ESDC website for more information.

It is important to highlight that while exemptions are available, employers must comply with all other regular LMIA application requirements.

Employers must indicate which exemption they wish to apply for during their LMIA application process.