Date: October 9, 2026
Reporter: Emilly Jordan
Canada has introduced a new quarterly set of unemployment rates that will determine where certain low-wage Labour Market Impact Assessment (LMIA) applications can be processed, with the updated rules taking effect October 9, 2026, and remaining in place until January 8, 2027. The latest update expands the number of Census Metropolitan Areas (CMAs) subject to the federal refusal-to-process rule from 26 to 30.
Under the Temporary Foreign Worker Program, Employment and Social Development Canada (ESDC) can refuse to process a low-wage LMIA application when the position is located inside a CMA with an unemployment rate of 6% or higher, provided the other conditions of the rule are also met. The measure has been in place since September 26, 2024 and is designed to limit the use of the low-wage temporary foreign worker stream in metropolitan labour markets where unemployment is elevated.
The unemployment rate used for this purpose is the rate in effect when an LMIA application is submitted, rather than the rate that may apply when ESDC later assesses the application. The rates are updated every three months using Statistics Canada Labour Force Survey data.
Six CMAs have newly entered the restricted category for the October 9, 2026, to January 8, 2027 period. Halifax, Nova Scotia, now has an unemployment rate of 6.1%, up from 5.9%. Fredericton, New Brunswick, rose to 6.2% from 5.3%, while Kingston, Ontario, increased to 6.3% from 5.3%. St. Catharines–Niagara reached 6.5%, compared with 5.8% previously. Regina, Saskatchewan, increased to 6.7% from 5.9%, while Lethbridge, Alberta, reached exactly 6.0%, up from 5.4%. Because the rule applies at 6% or higher, Lethbridge is now included among the restricted areas.
At the same time, two British Columbia metropolitan areas have moved out of the restricted category. Kamloops recorded a major decline in its unemployment rate, falling from 7.0% to 3.6%, while Chilliwack dropped from 7.9% to 5.6%. Employers in those two CMAs are therefore no longer subject to the unemployment-based refusal-to-process rule for low-wage LMIA applications during the current quarterly period, although other Temporary Foreign Worker Program requirements continue to apply.
Several metropolitan areas that were already restricted also experienced significant increases. Oshawa, Ontario, rose to 9.8%, the highest rate listed among Canada's CMAs, from 8.5%. London increased to 9.1% from 7.8%, while Ottawa–Gatineau rose to 7.9% from 6.7%. Kelowna, British Columbia, increased to 8.6% from 7.5%. Montreal rose to 7.2%, while Hamilton reached 7.4%.
The new figures mean that 30 of the 41 CMAs covered by the quarterly table are now at or above the 6% unemployment threshold. Only 11 remain below the threshold and therefore are not affected by this particular unemployment-based refusal-to-process measure.
The restrictions apply specifically to the low-wage LMIA stream. The wage offered for a position determines whether it falls under the low-wage or high-wage stream. According to the Immigration News Canada report, current provincial and territorial hourly wage thresholds are set at 20% above the applicable median hourly wage. Effective July 17, 2026, the thresholds include $36.92 per hour in Ontario, $38.40 in British Columbia, $37.50 in Alberta and $36.00 in Quebec.
An employer offering a wage below the applicable threshold may have the position treated as low-wage and therefore subject to the CMA unemployment restriction. Positions meeting or exceeding the applicable threshold fall under the high-wage stream and are not subject to this particular 6% unemployment restriction. Other LMIA requirements, including prevailing-wage rules and recruitment obligations, continue to apply.
The restriction also depends on the location classification of the job. Positions located outside a Census Metropolitan Area, including those in Census Agglomerations or areas that are not part of a CMA, are not subject to this specific 6% unemployment rule. However, employers must still meet the other requirements and refusal-to-process rules under the Temporary Foreign Worker Program.
The latest national labour-market figures released by Statistics Canada on October 9 show that Canada's overall unemployment rate increased to 6.5% in September, from 6.4% in August. Employment declined by 68,000 in September, while employment also fell in British Columbia and Quebec but increased in Alberta. These national figures are separate from the CMA rates used specifically for the LMIA refusal-to-process measure.
Statistics Canada reported that Alberta's provincial unemployment rate was 6.4% in September, down 0.4 percentage points from August, while British Columbia's was 6.4%, little changed from the previous month. The provincial figures do not replace the individual CMA rates used in determining whether the LMIA restriction applies to a particular metropolitan work location.
Employers planning to hire temporary foreign workers should therefore check the unemployment rate applicable to the exact work location before submitting a low-wage LMIA application. This is particularly important because a CMA can move from below the 6% threshold to 6% or higher in one quarterly update, as happened with Lethbridge, Fredericton, Kingston and several other regions.
The federal government has also maintained different processing timelines for LMIA streams. According to the latest ESDC processing-time figures, September 2026 average processing times were 82 business days for low-wage LMIAs and 98 business days for high-wage applications, although processing times can vary depending on application volumes and individual circumstances.
The current CMA unemployment rates will remain in effect until January 8, 2027, when the next quarterly update is scheduled. Employers and businesses using the Temporary Foreign Worker Program will need to continue monitoring these quarterly changes because a metropolitan area can move into or out of the restricted category as its unemployment rate changes.
The latest update illustrates how Canada's LMIA system is increasingly tied to regional labour-market conditions. For employers, the location of the job, the offered wage and the unemployment rate in effect on the date of submission can all affect whether a low-wage LMIA application can be processed.