How LMIA Changes Are Impacting Canadian Employers and Foreign Workers in 2025
Jan 23, 2025 | Blog, Immigrate to Canada, Immigration, In the News, New Immigration Programs, Temporary Foreign Workers, Where to seek help
The Canadian labor market has experienced significant shifts in 2024, with changes to the Labor Market Impact Assessment (LMIA) program that affect employers and foreign workers alike. These updates have far-reaching implications, especially for those navigating the complexities of high-wage and low-wage positions in Canada. Here’s a detailed breakdown of what you need to know.
What’s Changed in LMIA Policy?
The Canadian government uses the LMIA process to determine whether hiring a foreign worker will positively or neutrally impact the local labor market. As of 2024, major changes include:
- Regional Unemployment Thresholds for Low-Wage LMIAs:
- Employers in regions with unemployment rates above 6% are restricted from accessing low-wage LMIAs.
- This impacts 15 Census Metropolitan Areas (CMAs), including major hubs like Toronto, Vancouver, and Montreal.
- Extended LMIA Processing Times:
- High-wage LMIA processing now takes longer, increasing the need for meticulous documentation to avoid delays.
- Sector-Specific Restrictions:
- Industries like construction, hospitality, and retail are seeing tighter controls on hiring practices.
Full List of Affected CMAs and Unemployment Rates
Below is a comprehensive list of the 15 CMAs with unemployment rates above 6%, making them ineligible for low-wage LMIAs:
| CMA | Unemployment Rate (%) |
|---|---|
| St. John’s, Newfoundland and Labrador | 6% |
| Saint John, New Brunswick | 6.1% |
| Montréal, Quebec | 6.2% |
| Oshawa, Ontario | 7.5% |
| Hamilton, Ontario | 6.3% |
| St. Catharines-Niagara, Ontario | 6.2% |
| Kitchener-Cambridge-Waterloo, Ontario | 7.3% |
| Guelph, Ontario | 6.2% |
| London, Ontario | 6.4% |
| Windsor, Ontario | 8.8% |
| Barrie, Ontario | 6% |
| Regina, Saskatchewan | 6.1% |
| Calgary, Alberta | 7.5% |
| Edmonton, Alberta | 6.8% |
| Kitchener-Cambridge | 6.4 |
For employers and workers in these areas, understanding alternative pathways is critical.
How to Verify If a Job Location Is in an Affected CMA
Employers and workers can confirm whether a job falls within a CMA with high unemployment rates by:
- Entering the full postal code of the job location on Canada’s Census Geography website.
- Checking the “Census Metropolitan Area/Agglomeration” section of the search results.
- Verifying whether the CMA is listed with an unemployment rate of 6% or higher.
What’s Next for LMIA Policy?
The Canadian government will review these changes in April 2025, with updates to unemployment rates and LMIA criteria expected quarterly. Staying informed is crucial to adapting your strategies effectively.
What Is the Low-Wage Stream of the TFWP?
Canada’s Temporary Foreign Worker Program (TFWP) enables employers to hire foreign workers to address labour shortages.
Employers must apply under either the low-wage or high-wage stream, depending on the wage offered:
- High-Wage Stream: For wages at or above the provincial/territorial median threshold.
- Low-Wage Stream: For wages below the provincial/territorial median threshold.
As of November 8, 2024, hourly wages for workers entering under the high-wage stream were set at least 20% higher than the provincial/territorial median or equal to what similarly employed workers at the same company earn—whichever is greater. Positions offering wages below this level require employers to apply under the low-wage stream.
What Is a CMA?
A census metropolitan area (CMA) comprises one or more municipalities surrounding a core population center. To qualify as a CMA:
- The area must have a population of at least 100,000, with 50,000 or more residing in the core.
- Municipalities must demonstrate high economic and social integration with the core, as determined by commuting patterns.
Once an area gains CMA status, it retains this designation even if its population drops below the required threshold.
Advice for Employers
If you’re an employer affected by these changes, here are actionable steps to navigate the new LMIA landscape:
- Explore High-Wage LMIA Options:
- High-wage LMIAs remain accessible but require detailed recruitment efforts and compliance with salary benchmarks.
- Leverage Other Streams:
- Consider alternative pathways like the Global Talent Stream or International Mobility Program, which bypass LMIA requirements for specific roles.
- Adjust Recruitment Strategies:
- Focus on hiring within unaffected regions or provinces with unemployment rates below 6%.
- Prepare for Increased Processing Times:
- Submit error-free applications with complete documentation to minimize delays.
Advice for Foreign Workers
Foreign workers impacted by these changes can consider the following strategies:
- Explore Unaffected Regions:
- Relocate to provinces or regions with lower unemployment rates where low-wage LMIAs are still available.
- Alternative Immigration Pathways:
- Apply for study permits, which may lead to Post-Graduation Work Permits (PGWPs).
- Transition to visitor status temporarily while exploring new options.
- Enhance Skillsets:
- Pursue certifications or training to qualify for high-wage positions or roles under the Global Talent Stream.
How We Can Help
At CanadianVisas, we specialize in helping employers and workers navigate the complexities of LMIA applications. Here’s how we can support you:
- Employers: End-to-end assistance with LMIA preparation, recruitment strategies, and compliance.
- Workers: Tailored advice on immigration pathways, from work permits to permanent residency.
Need personalized advice? Book a consultation with our immigration experts today. Click here to schedule now.
Expert Insights
According to our immigration consultants:
“These LMIA changes are a game-changer for Canada’s labor market, especially in sectors like construction and hospitality. Employers must adapt quickly to avoid disruptions in their hiring processes.”
Final Thoughts
The 2024 LMIA updates present challenges but also opportunities for those who act strategically. Whether you’re an employer or a foreign worker, understanding these changes is the first step to staying ahead.
For detailed guidance and personalized support, reach out to us today. Let us help you navigate the road to success in Canada’s evolving labor market.
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