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Canada Expands Low-Wage LMIA Processing Freeze – Six More Regions Affected from October 10, 2025

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Canada Expands Low-Wage LMIA Processing Freeze – Six More Regions Affected from October 10, 2025

Starting October 10, 2025, Employment and Social Development Canada (ESDC) announced an expansion of its Low-Wage Labour Market Impact Assessment (LMIA) processing freeze.
The measure aims to protect job opportunities for Canadians and permanent residents in regions experiencing unemployment rates of 6% or higher.

This update adds six new regions to the list of Census Metropolitan Areas (CMAs) where low-wage LMIA applications will not be processed, while one region has been removed due to improved labour market conditions.

Summary of Regional Changes

CategoryRegion (CMA)ProvinceChange Effective October 10, 2025
AddedHalifaxNova ScotiaAdded to freeze list
AddedBarrieOntarioAdded to freeze list
AddedKingstonOntarioAdded to freeze list
AddedPeterboroughOntarioAdded to freeze list
AddedWindsorOntarioAdded to freeze list
AddedKelownaBritish ColumbiaAdded to freeze list
RemovedMonctonNew BrunswickRemoved due to lower unemployment

Purpose of the Freeze

The Low-Wage LMIA Processing Freeze prevents employers from submitting LMIA applications for low-wage positions in high-unemployment regions.

It is part of the government’s labour market stabilization strategy, ensuring employers hire Canadian citizens or permanent residents first before turning to the Temporary Foreign Worker Program (TFWP).

The freeze list is updated every quarter, based on regional unemployment data.

Impact on Employers and Foreign Workers

  • Employers in frozen regions cannot apply for new low-wage LMIAs.
  • They may continue to apply for high-wage, agriculture, or global talent stream positions.
  • Foreign workers awaiting job offers in affected areas may face delays or cancellations.
  • Employers are encouraged to explore alternative pathways, such as:
    • Provincial Nominee Program (PNP)
    • Express Entry
    • In-Canada recruitment and training incentives.

Next Review

The freeze will remain in effect until the next quarterly review, expected in January 2026, when ESDC reassesses unemployment trends and adjusts the eligible CMAs accordingly.

Conclusion

This latest update underscores the federal government’s data-driven approach to labour policy. Employers operating in the newly frozen CMAs should review their staffing plans and consult authorized immigration experts for guidance on alternative visa or work permit options.

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