Impact of Ottawa’s LMIA Freeze on Employers and Foreign Workers
Canada Pauses Low-Wage LMIA Processing in Major Cities: What You Need to Know
Key Announcement
Starting April 4, 2025, the Canadian government will temporarily pause the processing of low-wage Labour Market Impact Assessments (LMIAs) in 24 major cities, including Toronto, Vancouver, and Montreal. This freeze will remain in effect until July 10, 2025, as a response to rising unemployment rates in these urban centers.
Understanding the Rationale
The decision aims to bolster domestic employment by prioritizing local hiring in areas where unemployment has reached or surpassed 6%. This strategic move by Ottawa reflects the government’s ongoing efforts to navigate the complexities of labor shortages while ensuring that Canadians have first access to job opportunities.
Cities Affected
Key cities impacted by the freeze include:
- Toronto (8.6% unemployment)
- Montreal (6.7%)
- Vancouver (6.6%)
- Calgary (7.8%)
- Windsor (9.3%)
- Edmonton (7.3%)
- Kitchener-Cambridge-Waterloo (8.5%)
A total of 24 Census Metropolitan Areas (CMAs) will be affected, and this list will be updated quarterly.
Navigating the Changes: Employer Strategies
For employers in the restricted regions, options include:
- High-Wage Stream: Consider increasing salary offers to meet the criteria for high-wage LMIA processing, which remains unaffected by this freeze.
- Application Delay: Postpone applications until the next review date in July to reassess the situation.
- Expand Job Postings: Focus on regions with unemployment rates below 6%, where LMIA processing continues.
Employers should confirm whether their job locations fall within the restricted CMAs using available tools based on postal codes.
Adapting for Temporary Foreign Workers
Foreign nationals seeking employment under the low-wage stream must be strategic during this freeze:
- Communicate with Employers: Discuss the potential for wage increases or consider waiting for the next review.
- Shift Focus: Redirect job searches to cities where LMIA applications are still being processed.
- Stay Informed: Regularly check updates to prepare contingency plans if the freeze persists.
For those with expiring work permits, transitioning to a visitor record may provide legal status while exploring future options.
Why CMAs Matter
Census Metropolitan Areas (CMAs) are defined as regions encompassing a city and its surrounding municipalities, with a core population of at least 50,000. Understanding your job location’s CMA status is crucial during this temporary pause, as it directly affects LMIA eligibility.
Conclusion: Strategic Adaptation is Key
While the pause on low-wage LMIA processing is temporary, its implications are significant for both Canadian employers and prospective foreign workers. This development underscores the dynamic interplay between economic conditions and immigration policy. Adapting strategies to align with these updates will be essential for navigating the changing landscape of employment in Canada.
Stay informed and proactive to ensure you remain competitive in the evolving job market.
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