What happened?

New regional unemployment rates took effect on October 9, 2026, altering the eligibility for Canadian employers to hire temporary foreign workers via the low-wage Labour Market Impact Assessment stream. Only 11 Census Metropolitan Areas now have unemployment rates below 6 percent, a reduction from 15 in July.

This update limits options for foreign workers seeking LMIAs. Six regions have lost eligibility for low-wage Labour Market Impact Assessment (LMIA) processing, while two regions in British Columbia have regained it. These new rates are valid until January 7, 2027.

Who does this affect?

The six regions that lost eligibility for low-wage LMIA processing include Halifax, Fredericton, Kingston, St. Catharines-Niagara, Regina, and Lethbridge. Fredericton's unemployment rate is 6.2 percent, St. Catharines-Niagara's is 6.5 percent, and Lethbridge's is 6.0 percent.

Conversely, Kamloops and Chilliwack in British Columbia regained eligibility. Kamloops' unemployment rate fell from 7.0 percent in July to 3.6 percent in October, a decrease of 3.4 percentage points. Chilliwack's unemployment rate fell from 7.9 percent in July to 5.6 percent in October, a decrease of 2.3 percentage points. Thunder Bay is the sole Ontario Census Metropolitan Area below the 6 percent unemployment threshold.

What does this mean for you?

Since September 26, 2024, Employment and Social Development Canada has refused to process certain low-wage Labour Market Impact Assessment applications for positions in Census Metropolitan Areas where unemployment is 6 percent or higher. This restriction applies to jobs offering wages below the provincial or territorial wage threshold.

Employment and Social Development Canada updates these unemployment rates quarterly, causing fluctuations in employer eligibility for positive Labour Market Impact Assessments. Exemptions exist for specific critical and in-demand occupations and sectors, including construction, food manufacturing, hospitals, nursing and residential care facilities, and primary agriculture.

What happens next?

For foreign workers relying on an employer to obtain a Labour Market Impact Assessment for a new work permit or an extension of stay in Canada, their options are more limited for the next few months. Employers may be unable to access low-wage Labour Market Impact Assessments in regions with unemployment rates above 6 percent, even if they cannot find other qualified workers.

The new unemployment rates will be in effect from October 9, 2026, until January 7, 2027. Employment and Social Development Canada updates these applicable unemployment rates every three months.