Canada has announced the new unemployment rates for all Census Metropolitan Areas (CMAs) under the Temporary Foreign Worker Program (TFWP), now effective from October 10, 2025, to January 9, 2026.
These updated figures will directly impact Labour Market Impact Assessment (LMIA) applications—specifically for employers seeking to hire under the low-wage stream. The rates will remain in effect until the next update in early 2026.
🔍 What Are Census Metropolitan Areas (CMAs)?
A Census Metropolitan Area (CMA) represents one or more municipalities centered around a major urban core of at least 100,000 residents. This classification helps Employment and Social Development Canada (ESDC) evaluate local labour market conditions and determine whether an employer can hire foreign workers.
For example, the Windsor CMA includes Windsor, Lakeshore, LaSalle, Tecumseh, and Amherstburg—all sharing one labour market.
📊 Impact of New LMIA Unemployment Rates
Since September 2024, the federal government has applied stricter LMIA eligibility rules. Employers cannot apply for a low-wage LMIA if:
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The CMA unemployment rate is 6% or higher, and
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The offered wage is below the provincial or territorial median hourly wage.
This policy ensures that Canadian citizens and permanent residents are prioritized for local job openings before employers can recruit temporary foreign workers.
🏙️ Regions Affected by the October 2025 Update
The October 2025 data brought both good and bad news.
✅ Now Eligible (Below 6%)
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Peterborough, Ontario — Now open for low-wage LMIA applications due to improved employment conditions.
🚫 Now Ineligible (Above 6%)
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Greater Sudbury
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Guelph
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Winnipeg
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Regina
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Lethbridge
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Red Deer
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Kelowna
Employers in these regions will need to wait for the next ESDC update on January 9, 2026, for possible re-eligibility.
⚙️ Upcoming TFWP Reforms in 2026
According to internal ESDC consultations, six major Temporary Foreign Worker Program reforms are expected to launch in 2026. These aim to modernize the program while ensuring fair labour practices.
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Sector-Specific Work Permits
Workers in agriculture and fish processing may soon receive two-year, sector-based permits, allowing them to change employers within the same industry. -
Wage Deductions
Employers could be allowed to deduct costs like housing, utilities, and transportation directly from wages—raising concerns about reduced net income. -
Housing Standards
Proposed removal of indoor temperature regulations may affect worker safety, especially in high-heat environments like greenhouses. -
Transportation Flexibility
Employers may gain more freedom in how they arrange worker transportation, though safety remains a concern for remote areas. -
Health-Care Responsibilities
Proposed changes could blur employer obligations regarding worker health coverage, potentially affecting access to care. -
Simplified LMIA Procedures
The government aims to automate parts of LMIA processing, reducing delays and administrative burdens for employers.
These reforms, if implemented, will redefine how foreign labour mobility and employer compliance work within Canada’s evolving job market.
🌾 Agriculture LMIA Advertising Suspension Ending December 2025
Currently, employers in primary agriculture can apply for LMIAs without mandatory proof of job advertising. This temporary suspension, however, ends on December 31, 2025.
Employers must still document their efforts to recruit Canadians, particularly among vulnerable groups like Indigenous peoples, youth, newcomers, and persons with disabilities.
💼 What This Means for Employers and Workers
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Employers in newly eligible CMAs can resume hiring foreign workers under the low-wage LMIA stream.
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Regions with unemployment above 6% must prioritize local workers until rates improve.
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For foreign workers, this update means new opportunities in cities like Peterborough and other improving markets, especially in hospitality, agriculture, and manufacturing.
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