Employment and Social Development Canada (ESDC) has introduced several significant changes to the Labour Market Impact Assessment (LMIA) process and the Temporary Foreign Worker Program (TFWP) in 2024 and 2025, impacting both employers and foreign workers. The most notable updates are as follows.
1. Increased Wage Thresholds (Effective June 27, 2025)
ESDC has raised the minimum wage thresholds required for LMIA applications under the TFWP in almost every province. In Ontario, the threshold increased from 34.07 to 36.00 per hour, and in British Columbia from 34.62 to 36.60 per hour.
The wage offered determines whether an LMIA application falls under the high wage or low wage stream. If the offered wage is at or above the new threshold, the employer must apply under the high wage stream. If a foreign national’s wage is below the wage threshold in the relevant province, then the employer must apply under the low wage stream of the TFWP.
2. Suspension of Low Wage LMIA Processing in High Unemployment Areas
LMIAs for the low wage stream are no longer processed in census metropolitan areas with an unemployment rate of 6 percent or higher. This suspension began on September 26, 2024, and is expected to remain in effect for the time being. Updates for the unemployment rates in census metropolitan areas are updated every three months, with the next update scheduled for January 9, 2026.
Affected census metropolitan areas include major cities such as Toronto, Vancouver, Calgary, Edmonton, Montreal, and others.
There are exceptions that exist for certain sectors that are in demand, such as primary agriculture, food processing, fish processing, construction, and healthcare.
3. Reduction in LMIA Validity Period
The previous validity of a positive LMIA was twelve months. Employers were able to apply for a foreign national’s work permit within this time frame. As of May 1, 2024, this period has been reduced from twelve months to six months. Employers must now hire foreign workers and apply for work permits within this shorter window.
4. Lowered Workforce Caps for Low Wage Stream
The proportion of a business’s workforce that can be filled by low wage temporary foreign workers has been reduced to 10 percent from 20 percent as of March 2024, except in construction and healthcare, where the cap remains at 20 percent. This applies to all new LMIA applications in the low wage stream.
There are certain positions, such as agriculture and positions in seasonal industries, that are exempt from this restriction.
5. Reduction in Maximum Duration of Employment for Low Wage Stream
The maximum duration of employment for low wage temporary foreign workers has been reduced to one year from two years starting September 26, 2024, exempting the primary agriculture and meat cutting streams.
6. New Recruitment Requirements
Before applying for an LMIA, in addition to proving they have tried to hire Canadian citizens and permanent residents, employers must now demonstrate efforts to hire members of underrepresented groups in the labour market, such as vulnerable youth, Indigenous peoples, newcomers to Canada, persons with disabilities, and asylum seekers with valid work permits.
There is an increasing emphasis on recruiting these underrepresented groups, though the precise regulatory language and enforcement mechanisms for these requirements may vary and are evolving. Employers should consult the latest ESDC guidelines for specifics.
7. Other Notable Changes
Visitors can no longer apply for job offer supported work permits from within Canada as of August 28, 2024. Employers can no longer use attestations as proof of providing goods or services. They must provide other documentation instead as of October 28, 2024.
Additionally, annual targets for temporary foreign worker program work permits have been established, with a target of 82,000 net new permits for 2025.
8. Minor Modifications to Positive LMIAs
Some minor changes such as small wage increases up to 2.4 percent in 2025, minor job duty changes not affecting NOC code, and administrative corrections can be made to a positive LMIA without needing a new application, but employers must report certain changes to ESDC.
These changes reflect the Canadian government’s ongoing efforts to balance labour market needs with protections for domestic workers and to respond to economic conditions such as high unemployment in certain regions. Employers and foreign workers should review these updates carefully to ensure compliance with the latest requirements.
If you have questions regarding your immigration situation, we encourage you to reach out to Sultan Lawyers, online or by telephone at 647 952 9353 today.
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