New Canada Unemployment Rates for LMIAs Effective July 2026

New Canada Unemployment Rates for LMIAs Effective July 2026

The new CMA unemployment rates issued by Canada for the Temporary Foreign Worker Program (TFWP) have been implemented and are applicable to all low-wage LMIA applications submitted from July 10, 2026, to October 8, 2026.

This quarterly update marks a loosening trend that was not seen in the previous April quarter update and opens the low-wage LMIA stream for several important labour markets across Canada.

A total of 15 Census Metropolitan Areas (CMAs) have now fallen below the unemployment rate of 6%, compared to 11 CMAs during the April 2026 quarter.

Eight CMAs that were previously restricted because of high unemployment rates have now fallen below 6% and have become eligible for low-wage LMIA applications.

Four CMAs have experienced the opposite trend, rising above the 6% threshold and losing their eligibility after being below it during the April 2026 quarter.

As a result, there are four additional CMAs eligible under the Temporary Foreign Worker Program (TFWP) compared to the April 2026 quarter.

You can also learn more about the Labour Market Impact Assessment (LMIA): https://land2air.ca/labour-market-impact-assessment/

What the 6% CMA Rule Means for LMIA Applications

Since September 26, 2024, Employment and Social Development Canada (ESDC) has implemented a refusal-to-process policy for low-wage LMIA applications in areas with high unemployment.

If the proposed wage is below the applicable provincial or territorial median hourly wage and the job location is within a Census Metropolitan Area (CMA) where the unemployment rate is 6% or higher at the time of application, the LMIA application will not be processed.

This is not a discretionary measure and does not form part of the LMIA assessment process.

Instead, it is an automatic administrative restriction that applies immediately when the application is received, based solely on the current quarterly unemployment rate of that CMA.

The unemployment rates are updated every quarter, and the current rates remain in effect until the next scheduled update on October 8, 2026.

This means that employers seeking temporary foreign workers for entry-level or hourly wage positions cannot use the low-wage LMIA stream if their business is located in a restricted CMA.

Foreign workers waiting for a job offer in order to obtain a work permit through an LMIA are also affected if the employer is located in a restricted CMA.

Employers who qualify under an LMIA-Exempt Work Permit may also explore alternative pathways: https://land2air.ca/lmia-exempt-work-permits-canada/

8 CMAs Newly Eligible This Quarter

The following eight CMAs were at or above 6% during the April cycle but have now fallen below the threshold, making them eligible for low-wage LMIA processing from July 10, 2026, until October 8, 2026.

Census Metropolitan Area Current Rate (%) Previous Rate (%)
Halifax, Nova Scotia 5.9 6.1
Saint John, New Brunswick 5.9 6.0
Fredericton, New Brunswick 5.3 6.5
Drummondville, Quebec 5.7 7.3
Kingston, Ontario 5.3 6.2
St. Catharines–Niagara, Ontario 5.8 7.2
Winnipeg, Manitoba 5.6 6.0
Regina, Saskatchewan 5.9 6.4

The largest quarterly decline among the newly eligible CMAs was recorded in St. Catharines–Niagara, where the unemployment rate dropped from 7.2% to 5.8%.

Drummondville also recorded a significant decline, falling from 7.3% to 5.7% after previously rising above the threshold.

The reopening of Halifax at 5.9% allows employers in Atlantic Canada’s largest labour market to access the low-wage LMIA stream once again.

Saint John and Fredericton have also fallen below the 6% threshold, while Moncton remains the only restricted CMA in New Brunswick.

Winnipeg has dropped below the threshold at 5.6%, after previously recording exactly 6.0%, restoring employer access to the LMIA program.

Regina has declined from 6.4% to 5.9%, making the Saskatchewan capital eligible once again.

Finally, Kingston has fallen from 6.2% to 5.3%.

4 CMAs Newly Restricted This Quarter

Four CMAs that were previously below the 6% threshold have now risen above it, resulting in the suspension of low-wage LMIA processing in those cities from July 10, 2026, until October 8, 2026.

Census Metropolitan Area Current Rate (%) Previous Rate (%)
Saskatoon, Saskatchewan 6.5 5.5
Red Deer, Alberta 7.2 5.9
Kamloops, British Columbia 7.0 5.2
Chilliwack, British Columbia 7.9 5.7

Chilliwack recorded the largest quarterly increase, rising from 5.7% to 7.9%, an increase of 2.2 percentage points.

Kamloops, after previously falling below the threshold, has now increased from 5.2% to 7.0%.

Red Deer has risen from 5.9% to 7.2%, reversing its earlier decline.

Saskatoon increased from 5.5% to 6.5%, marking the first time it has become restricted during this LMIA evaluation cycle.

With Regina remaining eligible while Saskatoon is now restricted, employers in Saskatchewan face different LMIA eligibility depending on the location of their worksite.

Before submitting an LMIA application, employers may also find it helpful to review the Express Entry Document Checklist: https://land2air.ca/express-entry-document-checklist-for-canada/

7 CMAs That Remain Eligible

Seven CMAs that were already below the 6% threshold during the previous quarter remain eligible for the quarter ending October 8, 2026.

Census Metropolitan Area Current Rate (%) Previous Rate (%)
Saguenay, Quebec 3.4 3.9
Québec, Quebec 4.0 3.3
Sherbrooke, Quebec 4.3 5.2
Trois-Rivières, Quebec 5.3 5.2
Thunder Bay, Ontario 4.9 5.9
Lethbridge, Alberta 5.4 5.9
Victoria, British Columbia 4.6 4.9

Saguenay continues to record the lowest unemployment rate among all listed CMAs at 3.4%, maintaining a consistently strong labour market over several quarters.

Québec City recorded an unemployment rate of 4.0%, increasing from 3.3% in the previous quarter while remaining comfortably below the eligibility threshold.

Victoria reduced its unemployment rate from 4.9% to 4.6%, making it one of only two CMAs outside Quebec that have remained eligible throughout 2026.

Thunder Bay saw its unemployment rate decrease from 5.9% to 4.9%, providing additional room below the 6% threshold.

Lethbridge also experienced a decline from 5.9% to 5.4%, marking its second consecutive quarter below the threshold after being restricted for much of 2025.

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

Before submitting any low-wage LMIA application, employers should verify whether the work location is within a Census Metropolitan Area (CMA) where the unemployment rate is 6% or higher.

The verification process consists of two steps.

First, enter the complete postal code of the worksite into Statistics Canada’s Census of Population Geography Search Tool.

From the search results, identify the geographical classification as either Census Metropolitan Area (CMA) or Census Agglomeration (CA).

If there is no Census Metropolitan Area listed in the search results, the worksite is not located within a CMA and the application remains eligible.

If the classification is Census Agglomeration, the LMIA application also remains eligible.

If the worksite is located within a Census Metropolitan Area, employers must then verify the unemployment rate for that CMA using the latest ESDC unemployment rate table.

If the unemployment rate is 6% or higher, the low-wage LMIA application for that location will not be processed during that quarter.

Complete CMA Unemployment Rate Table For July To October 2026

The following table represents the unemployment rates applicable to LMIA applications submitted between July 10, 2026, and October 8, 2026, together with the previous two quarterly updates for comparison.

All CMAs with unemployment rates of 6% or higher remain restricted for low-wage LMIA processing.

Census metropolitan area Unemployment rate (%) in effect for applications submitted from July 10, 2026, to October 8, 2026 Unemployment rate (%) in effect for applications submitted from April 10, 2026, to July 9, 2026 Unemployment rate (%) in effect for applications submitted from January 9, 2026, to April 9, 2026
St. John’s, Newfoundland and Labrador 7.3 7.6 7.1
Halifax, Nova Scotia 5.9 6.1 5.2
Moncton, New Brunswick 8.1 7.4 5.5
Saint John, New Brunswick 5.9 6 5.8
Fredericton, New Brunswick 5.3 6.5 5.2
Saguenay, Quebec 3.4 3.9 4.3
Québec, Quebec 4 3.3 2.9
Sherbrooke, Quebec 4.3 5.2 4.8
Trois-Rivières, Quebec 5.3 5.2 3.9
Drummondville, Quebec 5.7 7.3 5.6
Montréal, Quebec 6.8 6.8 5.5
Ottawa-Gatineau, Ontario/Quebec 6.7 6.2 6.8
Kingston, Ontario 5.3 6.2 5.6
Belleville – Quinte West, Ontario 6.7 7.9 10.6
Peterborough, Ontario 7 6.3 5.3
Oshawa, Ontario 8.5 7.5 8
Toronto, Ontario 7.3 7.9 7.5
Hamilton, Ontario 6.9 6.7 6.4
St. Catharines-Niagara, Ontario 5.8 7.2 6.5
Kitchener-Cambridge-Waterloo, Ontario 8.1 9.1 8.1
Brantford, Ontario 6.2 6.8 8.5
Guelph, Ontario 7.4 6.5 7.4
London, Ontario 7.8 9.3 7.3
Windsor, Ontario 7.9 8.8 7.1
Barrie, Ontario 7.9 8.8 8.7
Greater Sudbury, Ontario 6.2 6.4 6
Thunder Bay, Ontario 4.9 5.9 4.2
Winnipeg, Manitoba 5.6 6 5.7
Regina, Saskatchewan 5.9 6.4 6.3
Saskatoon, Saskatchewan 6.5 5.5 5.8
Lethbridge, Alberta 5.4 5.9 7.2
Calgary, Alberta 7 7.1 6.3
Red Deer, Alberta 7.2 5.9 8.9
Edmonton, Alberta 7.2 7 6.9
Kelowna, British Columbia 7.5 8.9 8.5
Kamloops, British Columbia 7 5.2 6.6
Chilliwack, British Columbia 7.9 5.7 7.3
Abbotsford-Mission, British Columbia 8 6.2 6.4
Vancouver, British Columbia 6.7 6.5 5.9
Victoria, British Columbia 4.6 4.9 3.7
Nanaimo, British Columbia 6.5 7.2 6.3

The next update for the table will be due on October 8, 2026.

What Employers Must Do Before Filing

Employers planning to submit a low-wage LMIA application between July 10, 2026, and October 8, 2026, should complete the following steps before filing.

  • Verify the exact CMA designation of every work location using the Statistics Canada postal code lookup, as municipal boundaries may differ from CMA boundaries.
  • Confirm whether the proposed wage falls above or below the applicable provincial or territorial median hourly wage, as the 6% unemployment rule applies only to the low-wage stream.
  • Do not submit applications for work locations where a previously eligible CMA has become restricted, as the application will be assessed using the unemployment rate in effect on the date of submission.
  • Remember that the unemployment rate applicable is the one in effect on the date the LMIA application is submitted, not the date of the job offer or advertisement.
  • Employers located in newly eligible CMAs such as Halifax, Kingston, St. Catharines–Niagara, and Winnipeg should submit applications as early as possible if hiring is urgent, since eligibility may change after the next quarterly update on October 8, 2026.
  • Maintain complete records of recruitment efforts, including the required eight weeks of advertising for low-wage positions beginning April 1, 2026.
  • Employers located in restricted CMAs who urgently need workers should determine whether the position qualifies under one of the sector exemptions discussed later in this article.
  • Another option is to determine whether offering wages above the provincial median would allow the position to qualify under the high-wage LMIA stream, which is not affected by the CMA unemployment restriction, although different requirements, including a transition plan, apply.
  • Employers operating in multiple CMAs should evaluate each work location separately, as eligibility may differ even within the same province.

For employers who may qualify under an LMIA-Exempt Work Permit, additional information is available here: https://land2air.ca/lmia-exempt-work-permits-canada/

You can also learn more about the Labour Market Impact Assessment (LMIA) process: https://land2air.ca/labour-market-impact-assessment/

What Foreign Workers Should Know

Foreign workers waiting to obtain a work permit supported by an employer should understand how the quarterly unemployment rate updates may affect their application.

Employment opportunities connected to low-wage LMIAs will increase in the eight newly eligible CMAs, as employers in these areas now have access to the low-wage stream under the Temporary Foreign Worker Program (TFWP).

Employers located in the four newly restricted CMAs can no longer access the low-wage stream, which may affect their ability to hire foreign workers.

The unemployment rate is determined based on the date the LMIA application is submitted to ESDC, not the date the job offer is issued or when the worker submits a work permit application.

This means the timing of the quarterly update is extremely important.

Foreign workers who are already working legally in Canada under an existing work permit in one of the restricted CMAs are not affected by this measure.

Workers considering a job offer from an employer located in one of the newly restricted CMAs should confirm whether the employer intends to apply under the high-wage stream or another exempt category before making a decision.

Workers interested in employment opportunities within one of the newly eligible CMAs should also remember that the next quarterly update on October 8, 2026, may change eligibility again.

Workers already in Canada under another valid temporary status should seek advice from a qualified immigration professional before accepting employment in a restricted CMA.

You can also learn more about Canadian Temporary Residence Programs: https://land2air.ca/canadian-temporary-residence-programs/

Sector Exemptions From The CMA Restriction

Even when the unemployment rate is 6% or higher, certain occupations and industries remain exempt from the refusal-to-process policy.

The following occupations continue to qualify for LMIA processing regardless of the CMA unemployment rate:

  • Primary agriculture occupations, including applications submitted under the Seasonal Agricultural Worker Program.
  • Construction occupations classified under NAICS 23.
  • Food manufacturing occupations classified under NAICS 311.
  • Hospital occupations classified under NAICS 622.
  • Nursing and residential care facility occupations classified under NAICS 623.
  • In-home caregiver occupations under NOC 31301, 32101, 44100, and 44101.
  • Temporary and highly mobile occupations lasting 120 days or fewer, where the employer provides written justification.
  • LMIA applications submitted only to support Permanent Residence and not for obtaining a work permit.

Although these occupations are exempt from the CMA restriction, all other LMIA requirements continue to apply, including:

  • Advertising requirements.
  • Wage requirements.
  • Workplace safety requirements.

Employers must clearly identify the applicable exemption within their LMIA application.

The July 2026 CMA unemployment rate update provides positive news for employers and foreign workers in the eight CMAs that regained eligibility after the April update.

There are now 15 eligible CMAs, compared with 11 during the previous quarter, representing the first easing of LMIA eligibility since the January 2026 update.

At the same time, four CMAs that were previously eligible have now become restricted, demonstrating that eligibility can change significantly from one quarterly update to the next.

Employers should not assume that current eligibility will continue beyond October 2026, as unemployment rates near the 6% threshold may increase or decrease during future quarterly updates.

The quarterly unemployment rate update remains one of the most important factors affecting low-wage LMIA applications, and employers should continue planning recruitment activities based on the next update scheduled for October 8, 2026.

In the meantime, employers located in restricted CMAs may still consider the LMIA-Exempt Work Permit pathway and the sector exemptions discussed in this article.

You can learn more about LMIA-Exempt Work Permits here: https://land2air.ca/lmia-exempt-work-permits-canada/

Need Professional Assistance?

Learn more about the Labour Market Impact Assessment (LMIA) process: https://land2air.ca/labour-market-impact-assessment/

If you’re planning your long-term immigration journey, you can also explore:

Canadian Permanent Residence Programs

https://land2air.ca/canadian-permanent-residence-parograms/

Permanent Resident

https://land2air.ca/permanent-resident/

If you need professional immigration assistance, visit:

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