Canada Releases New Unemployment Rates for Labour Market Impact Assessment (LMIA) Eligibility
Canada has officially released updated unemployment rates by Census Metropolitan Areas (CMAs), a move that directly impacts the Temporary Foreign Worker Program (TFWP). These revised figures will remain in effect until January 9, 2026, and are crucial in determining whether employers can apply for low-wage Labour Market Impact Assessments (LMIAs).
The unemployment rate is a key factor in assessing whether a region is experiencing labour shortages. These updated rates provide the government with localized insights into the job market, guiding decisions on where foreign workers can be hired to meet demand. The Employment and Social Development Canada (ESDC) will review these figures every three months, with the next update scheduled for early January 2026.
What is a CMA?
A Census Metropolitan Area (CMA) includes one or more municipalities grouped around an urban core with at least 100,000 residents. These areas often encompass several surrounding towns and suburbs, forming a single economic region. CMAs are used by the federal government to monitor labour trends and assess local unemployment levels when processing LMIA applications.
Why the Unemployment Rate Matters
Since September 2024, the Canadian government has applied stricter rules for employers seeking to hire foreign workers under the low-wage stream of the TFWP. Employers cannot apply for a low-wage LMIA if:
The unemployment rate in the CMA is 6% or higher at the time of application, and
The offered wage is below the province or territory’s median hourly wage.
This policy is intended to protect Canadian workers by ensuring they are given priority for available jobs in regions where unemployment remains high.
Key Changes from the Latest Update
According to the most recent data, Peterborough, Ontario has now fallen below the 6% threshold, making employers in that region once again eligible to hire low-wage foreign workers. In contrast, Guelph, Ontario and Red Deer, Alberta remain above 6%, meaning LMIA applications for low-wage positions in these areas will not be approved.
These figures represent a significant shift in labour market access for both employers and foreign workers. Businesses in newly eligible CMAs can now begin hiring foreign workers to fill critical shortages in sectors such as hospitality, agriculture, and manufacturing.
What’s Next?
Until the next update in January 2026, these unemployment rates will guide low-wage LMIA eligibility across Canada. Employers in ineligible regions will need to focus on recruiting Canadian citizens or permanent residents, while those in eligible areas can begin addressing workforce gaps through the TFWP.
This update also opens up new opportunities for temporary foreign workers, as regions that were previously closed may now be accessible once again.
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