The restrictions introduced to the Temporary Foreign Worker Program (TFWP) in Canada prevent the processing of certain low-wage Labour Market Impact Assessment (LMIA) applications in Census Metropolitan Areas (CMAs) where unemployment reaches 6% or higher. The policy is especially important for Ontario, as 15 metropolitan areas of the province are currently at or above 6% unemployment threshold. The updated restrictions apply to applications submitted until January 7, 2027.
Note: You must note that low-wage LMIA exemptions apply to certain industries, permanent residence positions, primary agriculture, in-home caregivers, and certain short-term jobs. Also, the PR exemption covers LMIAs for PR only. If the LMIA also supports a work permit, the freeze applies.
A Labour Market Impact Assessment (LMIA) is a document that is issued by the government of Canada. It helps to determine whether hiring a foreign worker will negatively affect the labour market in Canada. A positive LMIA is generally required by the employers for hiring foreign workers through the Temporary Foreign Worker Program (TFWP).
The short-term exemption needs a written “Exemption request” uploaded to LMIA Online. It isn’t automatic.
Service Canada will not process certain low-wage LMIA applications under the refusal-to-process policy in the circumstances when:
(For Ontario, the applicable TFWP hourly wage threshold is $36.92 per hour, effective July 17, 2026.)
Both the above conditions have to be met. This means not every employer or foreign worker in an affected city is automatically restricted.
Below are the 15 low wage LMIA Ontario cities that have unemployment rate of 6% or more (for the period between October 9, 2026 and January 7, 2027). These areas are subject to Canada's low-wage LMIA refusal policy for the job positions that are lower than the wage threshold that is applicable.
Ontario CMA | Unemployment rate |
| Ottawa-Gatineau | 7.9% |
| Kingston | 6.3% |
| Belleville–Quinte West | 6.4% |
| Peterborough | 6.3% |
| Oshawa | 9.8% |
| Toronto | 7.5% |
| Hamilton | 7.4% |
| St. Catharines–Niagara | 6.5% |
| Kitchener–Cambridge–Waterloo | 7.6% |
| Brantford | 6.3% |
| Guelph | 7.5% |
| London | 9.1% |
| Windsor | 7.9% |
| Barrie | 6.2% |
| Greater Sudbury | 6.2% |
Note: The restrictions apply to qualifying job positions within the relevant CMA boundaries and are not necessarily every municipality associated with the city name. This means that the employers should verify their actual worksite location before they submit an LMIA application. Employers should check the worksite by full postal code in the Census lookup.
LMIA applications that are submitted exclusively to support a foreign worker's permanent residence (PR) application are exempt from the low-wage refusal-to-process measure. But you must note that this exemption does not apply if the LMIA is also intended to support a work permit application. In such a scenario the employers must still meet all other LMIA requirements.
Certain temporary jobs that last 120 calendar days or less may qualify for an exemption from the low-wage LMIA Restrictions Canada. Such jobs may be event-based work, specialized equipment repairs, short-term projects, and travelling carnival employees.Offering a temporary job does not guarantee eligibility. Employers have to provide supporting documents and also give enough proof that the position meets the exemption criteria.
The federal government has exempted certain essential industries from the LMIA freeze so as to help address the labour shortages from those industries.
The main exempt sectors are:
Construction: - Qualifying occupations within NAICS 23
Food manufacturing: - Businesses classified under NAICS 311
Hospitals: Employers classified under NAICS 622
Nursing and residential care: Facilities classified under NAICS 623
Certain caregivers:- Eligible occupations providing care in private households
Specific caregiver occupations include registered nurses (NOC 31301), licensed practical nurses (NOC 32101), home childcare providers (NOC 44100), and home support workers (NOC 44101).
Primary Agriculture: Eligible occupations involving on-farm primary agricultural activities, including crop production, harvesting, livestock farming, dairy farming, poultry production, greenhouse operations and nursery operations.
These exemptions in the above sectors make it possible for eligible employers to continue submitting low-wage LMIA applications despite the unemployment rate in their CMA. However, it must be noted that an exemption from the refusal-to-process measure does not guarantee LMIA approval. Employers must still satisfy all other applicable TFWP requirements.
In Canada, employers can generally hire low-wage temporary foreign workers up to 10% of their workforce at each location. Eligible employers hiring in construction, food manufacturing, hospitals, nursing and residential care, and certain care giving field may qualify for a 20% cap. For example, for an employer with less than 10 employees, the 10% cap allows to hire 1 worker and two under the 20% cap.
The current LMIA restrictions are to remain in effect until January 7, 2027. It is advisable to check the latest government announcements before submitting LMIA applications, as the list of affected Ontario cities may change on the basis of the updated unemployment rates. The next quarterly update is expected on January 8, 2027.
Employers in Ontario who are planning to hire foreign workers may take the following steps: -
Employers have to check if the job is in any of the 15 areas that are affected. The affected areas are called CMAs – Census Metropolitan Areas.
Employers must compare the offered hourly wage with the federal TFWP hourly wage threshold, not Ontario's minimum wage. For LMIA applications received from July 17, 2026, the applicable threshold in Ontario is $36.92 per hour. Positions offering wages below this threshold fall under the low-wage LMIA stream, while positions offering wages at or above this threshold fall under the high-wage LMIA stream.
Some industries, certain caregivers, and certain short-term workers might not have to follow the same rules. Hence the employers have to check whether the job is exempt from certain rules.
Check the federal unemployment figures and LMIA requirements before submitting applications. The updates from the government have to be monitored always.
Employers may also consider recruiting Canadian citizens and permanent residents or looking into eligible higher-wage job positions and permanent residence pathways.
The Low-Wage LMIA restrictions will be effective till January 7, 2027. The changes will significantly affect Ontario, as 15 metropolitan areas in the province have an unemployment rate of 6% or higher. For Ontario employers, the applicable TFWP hourly wage threshold is $36.92 per hour, effective July 17, 2026. Furthermore, primary agriculture positions, eligible caregiver occupations, permanent residence-only positions and qualifying short-term jobs may qualify for low-wage LMIA exemptions. The employers are to comply with the applicable 10% or 20% workforce cap as well.
Immilaw Immigration can help Ontario employers and foreign workers understand the latest LMIA rules. Our team will evaluate the eligibility for exemptions. With professional guidance from an Ontario lawyer, employers can make informed hiring decisions, while foreign workers can better understand their available pathways for permanent residence in Canada.
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Yes. For Ontario, the TFWP hourly wage threshold is $36.92 per hour for LMIA applications received on or after July 17, 2026. Positions offering wages at or above this threshold are classified under the high-wage LMIA stream and are not subject to this particular low-wage refusal-to-process measure. However, employers must still meet all other applicable LMIA requirements, including the prevailing wage requirements.
Employers should verify their worksite's location within the relevant Census Metropolitan Area (CMA) by full postal code in the Census lookup and check the latest unemployment rates published by the Government of Canada.
Employers should verify their worksite's location within the relevant Census Metropolitan Area (CMA) by full postal code in the Census lookup and check the latest unemployment rates published by the Government of Canada.
Eligible positions in construction, food manufacturing, primary agriculture, hospitals, nursing and residential care, and certain caregiver occupations in private households may qualify for exemptions.
No. It applies when the job is located in an affected CMA and the offered wage is below the applicable provincial or territorial wage threshold. Certain exemptions also apply.
Fifteen Ontario metropolitan areas are affected, including Toronto, Ottawa-Gatineau, Oshawa, Hamilton, London, Windsor, and Kitchener-Cambridge-Waterloo.
The current restriction period runs from October 9, 2026, to January 7, 2027.
It is a federal measure that refuses to process certain low-wage LMIA applications in CMAs where unemployment is 6% or higher.
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