Good News for Vancouver, Winnipeg, and 6 Other Canadian Regions: LMIA Processing Returns This Month

If you’re a foreign worker or an employer in Vancouver, Winnipeg, or several other Canadian cities, I’ve got some welcome news for you. Starting January 9, 2026, the federal government is resuming low-wage Labour Market Impact Assessment (LMIA) processing in eight regions that were previously frozen.

This change affects thousands of foreign workers and employers who’ve been waiting for their work permit applications to move forward. Let me break down what’s happening and what it means for you.

What Changed on January 9?

The government has lifted the LMIA processing freeze in eight cities where unemployment rates have dropped below 6%. Here’s the complete list of regions that can now process low-wage LMIAs again:

• Halifax, Nova Scotia (unemployment dropped from 6.1% to 5.2%)
• Moncton, New Brunswick (7.3% to 5.5%)
• Saint John, New Brunswick (7.3% to 5.8%)
• Fredericton, New Brunswick (6.7% to 5.2%)
• Montréal, Quebec (6.7% to 5.5%)
• Kingston, Ontario (6.6% to 5.6%)
• Winnipeg, Manitoba (7.3% to 5.7%)
• Vancouver, British Columbia (6.8% to 5.9%)

The improvement in these numbers is significant. Vancouver’s unemployment rate, for instance, dropped by almost a full percentage point, which tells us the job market is strengthening in these areas.

Understanding the LMIA Freeze

Back in August 2024, the federal government introduced a policy that seemed harsh at first glance. They decided to stop processing low-wage LMIA applications in any Census Metropolitan Area (CMA) with an unemployment rate of 6% or higher.

The reasoning was straightforward: if there are enough unemployed Canadians and permanent residents in an area, employers should prioritize hiring them before bringing in temporary foreign workers.

The government updates this list every three months, which means we’ll see the next update on April 10, 2026.

Where Is LMIA Processing Still Frozen?

Unfortunately, 24 regions across Canada still can’t process low-wage LMIAs. The unemployment rates in these areas remain stubbornly high. Here are some of the major cities affected:

Ontario has the most regions on the freeze list, including:

• Toronto (7.5% unemployment)
• Ottawa-Gatineau (6.8%)
• Hamilton (6.4%)
• Barrie (8.7%)
• Brantford (8.5%)

Alberta cities still affected:

• Edmonton (6.9%)
• Calgary (6.3%)
• Red Deer (8.9%)

British Columbia regions:

• Kelowna (8.5%)
• Abbotsford-Mission (6.4%)
• Chilliwack (7.3%)

Belleville-Quinte West in Ontario has the highest unemployment rate at 10.6%, which means it’ll likely remain on the freeze list for a while.

What Qualifies as “Low-Wage” Work?

This is where things get a bit technical, but it’s important to understand. A job falls under the low-wage stream if the pay is below 120% of the median wage for that region, or below what the employer pays current employees in the same role with similar experience—whichever is higher.

Think of it this way: if you’re being offered a retail job in Toronto paying minimum wage, that’s definitely low-wage. But if you’re being offered a specialized technical position paying $40 per hour, you might fall into the high-wage category depending on your province.

Are There Any Exceptions?

Yes, and this is crucial. Even in frozen regions, certain occupations can still get LMIAs processed:

• Primary agriculture workers
• Construction workers
• Food manufacturing positions
• Hospital workers
• Nursing and residential care facility staff
• Specific in-home caregivers
• Short-duration contracts (120 days or less)

So if you’re a construction worker or agricultural worker, you’re not affected by the freeze at all.

What Can Employers Do in Frozen Regions?

If you’re an employer desperate to hire foreign workers in a frozen region, you have two main options:

Option 1: Increase the wage to high-wage levels

Each province has a specific wage threshold. If you pay at or above this amount, you can apply through the high-wage stream instead:

• Ontario: $36.00/hour
• British Columbia: $36.60/hour
• Alberta: $36.00/hour
• Quebec: $34.62/hour
• Manitoba: $30.16/hour

The full list varies by province, with Northwest Territories at $48.00/hour and Yukon at $44.40/hour being the highest.

Option 2: Wait for the next quarterly update

The unemployment situation could improve in your region by April 10, 2026. We’ve seen eight regions come off the list this quarter, so there’s always hope.

What Should Foreign Workers Do?

If you’re currently job hunting in Canada, here’s my advice:

Focus on the right regions. The eight newly reopened regions plus areas with lower unemployment rates give you better chances of getting your work permit approved.

Look for exempt occupations. Construction and agriculture are always hiring, and they’re not affected by the freeze.

Check your specific location carefully. Canada uses something called Census Metropolitan Areas (CMAs), and you need to verify whether your job’s postal code falls within a frozen CMA.

You can check this by going to the Census of Population website and entering the work location’s full postal code. If it shows up as a CMA and that CMA is on the freeze list, you’ll need to look elsewhere or wait.

What Happens If Your Work Permit Expires?

This is a difficult situation many foreign workers are facing. If you’re on a low-wage work permit and it’s about to expire, but your employer can’t get a new LMIA because of the freeze, you’ll lose your legal status to work.

You can apply for a visitor record to stay in Canada as a visitor, but you won’t be able to work during that time. Alternatively, if you find a new employer in an eligible region or an exempt occupation, you might be able to start working while your new application processes—but only if you meet specific criteria.

The Bigger Picture

This quarterly review system shows the government is trying to balance two competing needs: protecting job opportunities for Canadians while still allowing businesses to fill genuine labour shortages with foreign workers.

The fact that eight regions improved enough to come off the freeze list is actually positive news. It suggests Canada’s labour market is adjusting, and unemployment is decreasing in many areas.

For employers, this means you might need to think more creatively about recruitment. Can you offer higher wages? Can you invest more in training Canadian workers? Can you wait a few months?

For foreign workers, it means being strategic about where you apply and staying informed about these quarterly updates.

Final Thoughts

Immigration policy is never simple, and these LMIA rules affect real people trying to build lives and businesses in Canada. If you’re caught in this situation, remember that the list changes every three months. What’s frozen today might be open in April.

Keep checking the official updates, consider working with an immigration lawyer if your situation is complex, and don’t give up. The fact that unemployment is dropping in many regions is a good sign for Canada’s economy—and eventually, that should mean more opportunities for everyone.

The next update is April 10, 2026. Mark your calendar.