Canada’s Low-Wage LMIA Freeze Explained: The 30 Cities, Wage Thresholds and What Foreign Workers Can Do

From 9 October 2026, Low-Wage LMIA Applications Are Refused in 30 Canadian Cities, With the List Updated Again on 8 January 2027

Under official guidance from Employment and Social Development Canada (ESDC), a low-wage LMIA application will not be processed if the job is located in a census metropolitan area with an unemployment rate of 6% or higher; for applications submitted between 9 October 2026 and 7 January 2027, that list covers 30 areas.

ESDC published the update on 9 October 2026 on its official page on refusing to process Labour Market Impact Assessment applications, and the Canadian immigration news site CIC News reported it the same day. Compared with the previous period, six areas were added — Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge — while Kamloops and Chilliwack in British Columbia came off the list. The list decides whether employers in those cities can keep hiring or renewing foreign workers in low-wage positions.

Key Points

• Who should pay attention: foreign nationals in Canada on employer-specific work permits in low-wage jobs, especially those whose permits expire in early 2027; people looking for work in Canada who want to know whether a job offer could stall; and employers and HR teams that hire foreign workers.
• This guide answers three questions: what the low-wage LMIA “freeze” actually freezes; how to tell whether a position is covered (wage, location and submission date); and how people in different situations can check and weigh their options.
• The key limit to understand first: what is frozen is the employer’s low-wage LMIA application, not every work permit. The list changes every three months, and what counts is which period the LMIA submission date falls into.

What a Low-Wage LMIA Is: Work Permits, LMIAs and the Low-Wage Stream

The most common way foreign nationals work in Canada is an employer-specific work permit. Immigration, Refugees and Citizenship Canada (IRCC) explains that this type needs a job offer, and the employer may need a Labour Market Impact Assessment (LMIA) first. An LMIA is a document the employer obtains from ESDC showing that no Canadian or permanent resident is available for the job; the worker then uses it to apply to IRCC for a work permit. The other main type is the open work permit, which needs no job offer and lets the holder work for most compliant employers, but is only available in certain situations.

LMIAs are split into high-wage and low-wage streams. ESDC’s rule is simple: if the offered wage is at or above the provincial or territorial median hourly wage plus 20%, the job goes into the high-wage stream; below that threshold, it is low-wage. The low-wage stream carries extra limits — for example, a maximum employment duration of one year, a general cap of 10% low-wage temporary foreign workers per work location (20% in listed sectors), and a processing fee of C$1,000 per position that cannot be passed on to the worker.

The Three Conditions of the Freeze: Wage Below Threshold, Location on the List, Submission Date in the Period

ESDC has applied this rule since 26 September 2024. An LMIA application is refused for processing only when all three conditions are met:

1. The wage is below the provincial or territorial threshold, which makes it a low-wage position.
2. The work location is in a census metropolitan area (CMA) with unemployment of 6% or higher. Rates come from Statistics Canada’s Labour Force Survey and are updated every three months.
3. The submission date falls in the period the list applies to. ESDC splits its unemployment table into three periods by application submission date:

These periods come from ESDC’s page on refusing to process LMIA applications, which gives 8 January 2027 as the next update date.

Jobs located outside any CMA are not affected. ESDC states that census agglomerations are out of scope, and if the work location’s postal code does not return a CMA, the application remains eligible.

Low-Wage LMIA Wage Thresholds by Province

All thresholds below come from ESDC’s hourly wage threshold page and apply to LMIA applications received on or after 17 July 2026, in Canadian dollars per hour. A wage below the figure for the job’s province makes the position low-wage:

ESDC also warns that the offered wage must be comparable to what Canadians and permanent residents earn in the same job, location and skill level, and that setting a wage to fit a stream can lead to a negative LMIA decision. In other words, raising the hourly rate above the threshold to “switch” streams is not just a matter of changing a number.

The 30 Areas on the List From 9 October 2026 to 7 January 2027

All 30 areas and rates below come from the Period 3 column of ESDC’s page on refusing to process LMIA applications (Statistics Canada Labour Force Survey). If a low-wage LMIA’s work location is in any of them, the application will not be processed:

The same table shows many areas below 6% in this period, including Winnipeg (5.9%), Victoria (5.8%), Saint John, New Brunswick (5.5%), Québec City (4.3%) and Thunder Bay (4.6%), as well as Kamloops (3.6%) and Chilliwack (5.6%), which came off the list. Winnipeg sits just 0.1 percentage points below the line; cities this close to 6% can easily change status in the next period.

Which Jobs Are Exempt From the Low-Wage LMIA Freeze

ESDC lists the following exemptions. Even when the work location is on the list and the wage is below the threshold, a low-wage LMIA can still be submitted for:

• Primary agriculture occupations.
• Construction (NAICS 23), food manufacturing (NAICS 311), hospitals (NAICS 622), and nursing and residential care facilities (NAICS 623).
• Certain in-home caregiver occupations (NOC 31301, 32101, 44100, 44101). In Quebec CMAs, the care must be for a person with medical needs, or for a child whose guardian cannot provide care for medical reasons, with a physician’s note.
• Positions supporting permanent residence only, with no work permit application.
• Truly temporary or highly mobile positions, generally 120 calendar days or less, with a written exemption request uploaded with the application; longer durations are considered only in exceptional cases.

Separately, the Montréal and Laval economic regions in Quebec have their own temporary refusal for certain low-wage positions. It is a different measure from the 6% rule, and employers there need to check both.

How Foreign Workers in Canada Can Check and Respond to the Low-Wage LMIA Freeze

Step one: confirm which permit you hold. The freeze only affects work permits that need a low-wage LMIA. Open work permit holders are not working on the basis of an employer’s LMIA, so the rule does not directly affect their extensions. The people who most need to pay attention are those on employer-specific permits originally obtained through a low-wage LMIA.

Step two: check the next LMIA against the three conditions. Which period will the employer’s next LMIA submission date fall into? Is the work location on that period’s list? Is the wage below the provincial threshold? If all three apply and no exemption fits, the application will not be processed. ESDC does not charge a processing fee for applications it refuses to process, and sends a letter explaining why.

Step three: submit your extension before your permit expires. IRCC explains that if your extension application is received before your current permit expires (for online applications, before midnight UTC on the expiry date), you have maintained status (formerly called implied status): as long as you stay in Canada, you can keep working under the conditions of your current permit. For an employer-specific permit, that means the same employer, job and work location.

Step four: understand concurrent processing. If your permit expires in two weeks or less, and your employer has submitted a complete LMIA application that has not yet been decided, you can apply to extend first. Under IRCC’s officer instructions updated on 21 August 2026, applicants then have 90 days from the date of submission to provide a positive LMIA. Note, however, that if the employer’s LMIA is refused for processing because the work location is on the list, this route does not help.

Step five: put the dates in your calendar. The list will be updated on 8 January 2027. If a work location’s unemployment rate falls below 6% in the next period, low-wage LMIAs submitted in that period can be processed again; equally, cities not on the current list could be added. If your permit expires in the first half of 2027, check again after 8 January.

Common Misunderstandings and Risks

Misunderstanding one: “Canada has frozen work permits for foreign workers.” The freeze covers employers’ low-wage LMIA applications in specific metropolitan areas. High-wage LMIAs, exempt sectors, locations outside the list and open work permits are outside its scope. Practical tip: check your permit type and wage before deciding whether you are affected.

Misunderstanding two: “My city is on the list, so I’m affected.” What matters is the work location, not where you live. A work location whose postal code does not fall in any CMA remains eligible. Practical tip: go by the work location on the employer’s LMIA.

Misunderstanding three: “Raising the hourly wage above the threshold solves it.” ESDC requires the wage to match the going rate for the same job and area; adjusting a wage just to change streams can lead to a negative decision. Practical tip: the wage needs market support, not just a new number.

Misunderstanding four: “Applications already in progress when the list came out will be refused too.” ESDC decides by which period the LMIA submission date falls into. Halifax, for example, had a 5.9% rate in Period 2 (10 July – 8 October 2026), so it was not on that period’s list. Practical tip: individual cases depend on how ESDC actually processes them.

Risk: applying to extend after the permit has expired. Maintained status requires the extension to be received before the permit expires; after expiry, different rules apply and the options narrow considerably. Practical tip: do not wait for the LMIA result before preparing extension documents.

Three Scenarios: How the Low-Wage LMIA Freeze Plays Out

Scenario one: a foreign worker at a Toronto restaurant earning C$22 an hour. Her employer-specific permit expires in December 2026. Toronto is on the current list (7.5%), her wage is below Ontario’s C$36.92 threshold, and food service is not an exempt sector, so a low-wage LMIA submitted by her employer before 7 January 2027 will not be processed. What she should keep in mind: the extension must be submitted before her permit expires; she can look into whether she qualifies for another type of permit; and she should recheck Toronto’s status after the list is updated on 8 January 2027.

Scenario two: a foreign tradesperson on a Halifax construction site. Halifax was newly added to the list this period, but construction (NAICS 23) is an exempt sector, so his employer can still submit a low-wage LMIA. The point to remember is that an exemption does not mean the LMIA will be approved; the employer still has to meet the low-wage stream’s recruitment, housing and transportation requirements.

Scenario three: a retail chain employer in Calgary. Calgary is on the list (6.4%), and store positions pay below Alberta’s C$37.50 threshold. HR’s job is to check each position’s work location, wage and submission timing against the list and the threshold table, build the 8 January 2027 update into its hiring plan, and factor in the cap on low-wage foreign workers at each work location (generally 10%).

Canada Low-Wage LMIA Freeze: Frequently Asked Questions

How long does Canada’s low-wage LMIA freeze last?

The current list applies to applications submitted from 9 October 2026 to 7 January 2027. ESDC updates it every three months using Statistics Canada’s Labour Force Survey, with the next update on 8 January 2027. The rule itself has no announced end date; cities move on and off the list as unemployment changes, so what matters is each period’s list rather than a single deadline.

How is the low-wage LMIA wage threshold calculated?

The threshold is the provincial or territorial median hourly wage plus 20%. For applications received on or after 17 July 2026, it is, for example, C$36.92 in Ontario, C$38.40 in British Columbia, C$37.50 in Alberta and C$36.00 in Quebec. It depends on the province where the job is, not where the worker lives. A wage at or above the threshold falls into the high-wage stream, which this freeze does not cover.

My work permit is about to expire and my employer is in a listed city. What should I do?

The most important step is to submit your extension before your permit expires. With maintained status, you can keep working under your current conditions while you stay in Canada. Next, look at what new basis is available: whether the job is in an exempt sector, whether the wage is genuinely at or above the threshold, and whether you qualify for another type of permit. Cases vary widely, so assess your own permit type and expiry date individually.

Are open work permit holders affected?

Open work permits need no job offer and do not depend on an employer’s LMIA, so the rule does not directly affect their extensions. But if you later plan to move to an employer-specific permit in a low-wage position, you will face the same list and threshold, so check before switching.

How do I know whether a work location is inside a census metropolitan area?

ESDC determines the CMA by the work location’s postal code; if no CMA is returned, the application remains eligible. The list only covers CMAs, not smaller towns classed as census agglomerations. Before submitting an LMIA, employers should check the work location on the application against ESDC’s table for that period.

Do I pay a fee if a low-wage LMIA is refused for processing?

No. ESDC states that it does not charge a processing fee when an application is refused for processing or the employer is ineligible, and it sends a letter explaining the reason. Note that “refused for processing” is different from a negative decision after assessment — the former means the application never entered assessment.

Working in Canada or Planning to? Ask Zagdim

The list changes every three months, and everyone’s permit type, expiry date and work location differ. To find out what these rules mean for you, Ask Zagdim.

Important Disclaimer

This article is general information and does not constitute legal, immigration or other professional advice. It is based mainly on official pages from Employment and Social Development Canada and Immigration, Refugees and Citizenship Canada published or updated between May and October 2026. Lists and thresholds are updated regularly; individual cases depend on the latest official notices and actual assessment, and you may wish to consult a licensed Canadian immigration consultant or lawyer.

Rules current as of 16 October 2026; the list applies until 7 January 2027 and will be updated on 8 January 2027. Check the latest official notices from ESDC and IRCC.

References

ESDC – Refusal to process Labour Market Impact Assessment applications / ESDC – Hourly wage threshold by province or territory / ESDC – Hire a temporary foreign worker in a low-wage position / ESDC – Low-wage position: Program requirements / IRCC – How to extend your work permit / IRCC – Labour Market Impact Assessment Review – Temporary Foreign Worker Program / IRCC – Find out if you need a work permit / CIC News – Work permit freeze expands to six more labour markets across the Maritimes, Ontario, and the Prairies