On January 10, 2025, the Temporary Foreign Worker Program (TFWP) website released updated unemployment rates for Canada’s Census Metropolitan Areas (CMAs). These updates bring significant implications for employers and foreign workers relying on Labour Market Impact Assessment (LMIA) applications under the low-wage stream.
This change is especially relevant as LMIA applications are no longer processed under certain conditions. Here’s what you need to know about the latest updates and how they impact Canadian employers and foreign workers.
Understanding the Role of CMAs in LMIA Applications
A Census Metropolitan Area (CMA) comprises one or more municipalities centered around a population core with at least 100,000 residents. Examples include Windsor CMA, which covers multiple areas such as LaSalle, Tecumseh, and Amherstburg.
LMIA applications in low-wage streams are impacted by CMA unemployment rates. As of September 26, 2024, LMIAs are not processed if:
- The CMA unemployment rate is 6% or higher at the time of submission.
- The position’s wage is below the provincial or territorial threshold.
With the latest updates, seven CMAs, including Vancouver, Abbotsford, and Winnipeg, now fall below the 6% unemployment threshold, opening new opportunities for foreign workers in these regions.
Latest Unemployment Rates as of January 2025
Below are the updated unemployment rates for various CMAs effective January 10, 2025, compared to earlier periods:
| CMA | Jan 10–Apr 3, 2025 | Oct 11, 2024–Jan 9, 2025 | Sep 26–Oct 10, 2024 |
| Vancouver, BC | 5.9% | 6.5% | 6.2% |
| Abbotsford, BC | 5.4% | 6.5% | 6.7% |
| Winnipeg, MB | 5.6% | 6.6% | 6.3% |
| Trois-Rivières, QC | 5.2% | 6.7% | 6.5% |
| Kingston, ON | 5.7% | 6.9% | 6.6% |
| Ottawa-Gatineau, ON/QC | 5.4% | 6.9% | 7.1% |
However, CMAs like Saint John and Barrie now exceed the 6% threshold, making them ineligible for LMIA applications until April 3, 2025.
Key Changes to TFWP in 2024
The Canadian government has implemented measures to manage LMIA applications in regions with high unemployment. Here are the notable updates:
1. Refusal of LMIA Applications in High-Unemployment Areas
LMIAs under the low-wage stream are refused for CMAs with 6% or higher unemployment rates unless they involve critical sectors such as:
- Primary agriculture
- Food processing
- Fish processing
- Construction
- Healthcare
2. Workforce Cap on Foreign Workers
- Employers can hire a maximum of 10% of their workforce through the TFWP. This is a reduction from the previous 20% cap. Critical sectors retain the 20% cap.
3. Shortened Employment Duration
- Low-wage positions now have a maximum employment duration of one year, down from two years.
Opportunities for Employers and Foreign Workers
Employers in CMAs with unemployment rates below 6% gain better access to recruiting talent through the TFWP. For foreign workers, targeting these regions can enhance their chances of obtaining a work permit.
These updates ensure that the labour market aligns with Canada’s economic needs while safeguarding job opportunities for Canadian citizens. Employers and foreign workers must stay informed of these changes to make well-informed decisions.
The new unemployment rates for Canadian CMAs, effective January 2025, mark an essential shift for LMIA applications under the Temporary Foreign Worker Program (TFWP). Employers in eligible regions can leverage this update to address workforce gaps, while foreign workers can explore new employment opportunities. Staying updated on these changes is vital for maximizing the potential of Canada’s Labour Market Impact Assessment process. As the government continues monitoring economic trends, these updates aim to strike a balance between supporting foreign talent and protecting the local workforce.
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