New LMIA Rules Limit Low-Wage Foreign Worker Hiring in 2025

Since January 2025, Canada will tighten rules on low-wage LMIA applications, restricting hiring in high-unemployment regions. This aims to prioritize jobs for Canadian workers and reduce reliance on temporary foreign labor.

For employers in affected industries, this could mean staffing challenges, while foreign workers may need to explore alternative pathways to stay in Canada.

Why Is Canada Implementing These Changes?

Canada has long used the TFWP to address labor shortages, but concerns have grown about its impact on local job markets. The government wants to ensure that employers first look to the domestic workforce before turning to foreign labor.

As part of this effort, from August 26, 2024, LMIA applications for low-wage jobs are no longer accepted in Census Metropolitan Areas (CMAs) where unemployment is 6% or higher. This list of restricted regions will be updated every three months, with the next update scheduled for April 2025.

The government’s new LMIA restrictions on low-wage workers are part of broader reforms to the LMIA system. In fact, Canada is also considering removing LMIA-related points from Express Entry, a major change for those seeking permanent residency.

Key Changes Under the New Policy

The updated regulations introduce stricter conditions for hiring low-wage foreign workers:

• LMIA applications for low-wage jobs are banned in CMAs with 6%+ unemployment.
• Wage thresholds for high-wage positions increased 20% since November 2024.
• Stronger requirements to prove a lack of available Canadian workers before hiring foreigners.

These measures aim to reduce reliance on temporary foreign workers and encourage employers to offer better wages and conditions to attract local workers.

Which Industries Are Affected?

Sectors heavily reliant on low-wage foreign labor will feel the impact, including:

• Hospitality and food services
• Retail and customer service
• Warehousing and logistics

However, some industries remain exempt from these restrictions, including:

• Primary agriculture
• Food processing
• Construction
• Healthcare

These exemptions recognize the critical labor needs in these sectors.

Reactions from Employers and Workers

Employers in affected industries worry about labor shortages, arguing that local workers are often unwilling to take on physically demanding or low-paying jobs. Many businesses may have to raise wages or adjust hiring strategies to comply with the new regulations.

For temporary foreign workers already in Canada, these changes could limit their ability to renew work permits, making it crucial to check unemployment rates in their region before applying for an LMIA.

What Are the Options for Foreign Workers?

If you are a foreign worker affected by these changes, consider the following alternatives:

1. Explore Other Immigration Programs – The Provincial Nominee Program (PNP) and Express Entry offer permanent residence options for skilled workers.
2. Find Employers in Exempt Sectors – Jobs in agriculture, construction, and healthcare are still eligible for LMIA approvals.
3. Upgrade Your Skills – Obtaining Canadian certification or training can help qualify for higher-wage roles that are not subject to restrictions.

Conclusion: A Changing Landscape for Foreign Workers

These new LMIA restrictions reflect Canada’s effort to balance immigration and job protection. For employers, this means rethinking hiring strategies, while for foreign workers, it underscores the need to stay informed and explore alternative pathways to remain in Canada.

Not sure how these changes affect you? Take a free assessment with AskAïa to explore your best immigration options and stay informed on the latest policies.