New Unemployment Rates for LMIA
Hello World! As we introduced in our previous blog, since September 26, 2024, the Government of Canada has restricted LMIA applications under the Low-Wage stream in Census Metropolitan Areas (CMAs) where the unemployment rate is 6% or higher. This time, we would like to share the latest quarterly unemployment rates below.
Latest Unemployment Rates in CMAs
The latest data indicate a slight upward trend in unemployment across Canada. The number of CMAs with unemployment rates at or above 6% has increased to 32, up from 26 regions in the previous quarter (July 11–October 9, 2025). In these affected areas, LMIA applications under the Low-Wage stream will not be accepted between October 10, 2025, to January 8, 2026. Below is a summary highlighting key regions and recent changes.
Newly Eligible Regions for LMIA Applications
| CMA | Unemployment Rate (%) (2025/7/11-10/9) | Unemployment Rate (%) (2025/10/10-2026/1/8) |
|---|---|---|
| Peterborough, Ontario | 9.9 | 5.6 |
Newly Ineligible Regions for LMIA Applications
| CMA | Unemployment Rate (%) (2025/7/11-10/9) | Unemployment Rate (%) (2025/10/10-2026/1/8) |
|---|---|---|
| Guelph, Ontario | 5.9 | 9.2 |
| Greater Sudbury, Ontario | 5.4 | 7.0 |
| Winnipeg, Manitoba | 5.6 | 7.3 |
| Regina, Saskatchewan | 5.3 | 6.8 |
| Lethbridge, Alberta | 5.2 | 8.5 |
| Red Deer, Alberta | 5.6 | 8.7 |
| Kelowna, British Columbia | 5.0 | 6.0 |
Key Regions
| CMA | Unemployment Rate (%) (2025/7/11-10/9) | Unemployment Rate (%) (2025/10/10-2026/1/8) |
|---|---|---|
| Montréal, Quebec | 6.9 | 6.7 |
| Toronto, Ontario | 8.9 | 9.5 |
| Calgary, Alberta | 7.3 | 8.0 |
| Vancouver, British Columbia | 6.3 | 6.8 |
| Victoria, British Columbia | 4.1 | 5.2 |
Trends from Latest Data
Provinces with Increasing Unemployment Rates
In regions where the unemployment rate exceeds 6%, cities tend to face job instability caused by concentrated industries or rapid population growth. Here are some examples of cities.
・Guelph (Ontario, 9.2%)：
A sharp rise from 5.9% in previous quarter, influenced by the slowdown in the automotive industry.
・Red Deer (Alberta, 8.7%) Winnipeg (Manitoba, 7.3%)：
More vulnerable areas to economic fluctuations as they dependent on resources, agriculture,
and construction.
・Toronto (Ontario, 9.5%) Vancouver (British Columbia, 6.8%)：
Canada’s largest cities continue to see intense job competition due to population growth,
despite having many employment opportunities.
Provinces with Improving or Stable Unemployment Rates
In contrast, regions where unemployment has stabilized or improved below 6% generally have one thing in common — a diverse and well-balanced local economy. The following are examples.
・Peterborough (Ontario, 5.6%)：
It has improved significantly from 9.9%, supported by steady employment in education and
healthcare sectors.
・Saguenay (Quebec, 4.2%) Trois-Rivières (Quebec, 5.1%)：
They maintain stability through a combination of manufacturing and service industries.
・Victoria (British Columbia, 5.2%)：
As the provincial capital, it benefits from strong public sector employment and a thriving
tourism industry, making it less sensitive to economic changes.
For the full list of affected CMAs and detailed information, please refer to the official Government of Canada website:
https://www.canada.ca/en/employment-social-development/services/foreign-workers/refusal.html#h2.2.3
LMIA Application Volume Drops by Half
Government Initiatives to Reduce LMIA Usage
On October 6, 2025, the Government of Canada released an update on the Temporary Foreign Worker Program (TFWP). It is emphasized that Canadian citizens and permanent residents must be prioritized for available jobs. The TFWP should only be used as a last resort when employers are unable to find qualified local workers. (LMIA is the process required for foreign nationals to work in Canada through the TFWP)
Although foreign workers under the TFWP represent only about 1% of Canada’s total workforce, they play a vital role in key sectors such as agriculture, food processing, construction, and healthcare. However, following the government’s 2024 initiatives to reduce dependence on foreign labour, the number of TFWP applications has decreased by approximately 50% overall, and by about 70% for the Low-Wage stream.
Stricter Employer Audits
At the same time, the government has strengthened monitoring of employers to prevent misuse of the TFWP and ensure compliance with labor standards. Between 2024 and 2025, there were 1,435 employer inspections with roughly 10% of companies found to be non-compliant. During the same period, total fines increased from $2,067,750 to $4,882,500, and 36 companies were prohibited from using the TFWP—approximately three times more than the previous year.
Future Policy Direction
The government will continue to pursue a balanced approach that prioritize employment for Canadians and permanent residents, while also protecting the rights of foreign workers.
For more details, please see the official announcement by the Government of Canada:
https://www.canada.ca/en/employment-social-development/news/2025/10/the-government-of-canada-highlights-reduced-usage-of-temporary-foreign-worker-program-and-increased-penalties.html
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As Canada continues its policy to reduce reliance on foreign labor, it is increasingly important to carefully select regions with stronger long-term employment prospects. If you would like advice or support with your LMIA process, please feel free to contact us through this form.
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