New Rules for LMIA Canada 2025

In 2025, Canada’s Labour Market Impact Assessment (LMIA) process will affect many companies and employers that depend on temporary foreign workers under these new regulations. As a company owner or manager, understanding these LMIA changes in Canada can help you effectively organize your hiring process and ensure compliance with legal requirements.

This post will clarify the new LMIA Canada rules, their operation, and your options for adjustment. We will also provide some LMIA Canada figures to enable you to see the larger picture.

Changes to LMIA Canada in 2025

Canada has made major changes to the LMIA (Labour Market Impact Assessment) rules, particularly for lower-paying jobs. These new rules for LMIA Canada are intended to benefit Canadian workers and to make the system more equitable. Here is the summary of 2025 LMIA Changes in Canada:

May 28, 2025: Foreign Workers on Closed Work Permits Can Now Change

IRCC has introduced a new temporary policy that allows foreign nationals holding closed (employer-specific) work permits to switch employers or occupations without requiring a new work permit to be issued.

Now, if you apply for a new closed work permit (for a different employer or job), you don’t have to wait for the permit to be approved before starting work. You can apply for an exemption that allows you to begin working for your new employer while your new permit is being processed. You may qualify if:

• You are in Canada with valid temporary resident status (including maintained status)
• You have applied for a new work permit or an extension
• You were authorized to work when you applied
• You have a job offer for a new employer or occupation

Why Is This Good News for Foreign Workers?

• No more long gaps between jobs!
• If you’re laid off or want to switch jobs, you can start your new position quickly, instead of waiting up to 230 days for permit processing.
• Huge relief for anyone in transition, helping you avoid months without income.

March 25, 2025: Express Entry LMIA Points Removed

• LMIA-based job offers no longer grant CRS points for new Express Entry candidates.
• While LMIAs still exist, candidates without an ITA will no longer receive extra CRS points for job offers.

January 2025: Low-Wage Restrictions by Region

You cannot hire low-wage foreign workers in cities with a 6% unemployment rate or higher. This regulation affects 15 major cities, as shown below:

• The impacted areas will be updated quarterly.
• You can enter your postal code on the Census of Population website to verify whether your region is affected.
• Vancouver and Ottawa-Gatineau were removed from the restricted list when their unemployment rates fell below 6%.
• This guideline ensures high-unemployment Canadians have more work possibilities.

November 8, 2024: High-Wage Threshold Increase

• The high-pay stream salary level will rise by 20%.
• To recruit a foreign worker under the high-wage stream, you must pay them 20% more than the median salary in your province or territory.
• For Example, Alberta’s median wage rises from $29.50 to $35.40/hour.
• Employers will pay more for foreign labour, but they will earn more.
• The pay threshold hike encourages firms to recruit Canadians and makes foreign worker positions more appealing. It also prevents foreign workers from earning less than Canadians for the same job.

October 28, 2024: End of Legal/CPA Attestations

• Employers will no longer be able to use letters from lawyers or accountants to legitimize their company.
• Other paperwork, including company licenses, tax filings, and financial statements, is required.
• The government aims to restrict foreign worker hiring to actual enterprises to prevent paperwork fraud.
• You must maintain proper records and exhibit documentation of your company when applying for an LMIA Canada under this new requirement.

September 26, 2024: Low Wage Restrictions

• LMIA Canada will not consider your application to recruit a foreign worker for a low-wage job in a city or region with a 6% or higher unemployment rate.
• Many companies now limit the number of low-wage overseas workers to 10% of their staff.
• Construction and healthcare are capped at 20%.
• Foreign workers may now work in low-wage jobs for 1 year, reduced from 2 years.
• LMIA Canada processing for low-wage occupations will be stopped in Montréal and Laval for months.
• You must prepare ahead to fill positions if you can’t utilize the low-wage stream as often.

Updated LMIA Canada Processing Times

LMIA Canada application processing times have been modified in 2025. A short check of stream times:

Impacted Regions and Census Metropolitan Areas (CMAs)

Some localities can no longer handle low-wage LMIA applications in Canada due to recent changes to the LMIA process. As of January 2025:

• You cannot hire low-wage foreign workers in cities with a 6% or higher unemployment rate. This regulation affects 15 major cities, including Toronto, Calgary, Montréal, and Edmonton.
• Every three months, impacted areas are updated. Enter your postal code on the Census of Population website to verify whether your region is affected. Vancouver and Ottawa-Gatineau were removed from the restricted list when their unemployment rates fell below 6%.
• This guideline ensures high-unemployment Canadians have more work possibilities.

Industry-Specific Implications

LMIA influences Canada’s industries differently:

• Construction and Healthcare: Construction and healthcare may employ up to 20% of low-wage immigrant labour. They may need to utilize technology or hire locals to fill employment gaps.
• Agriculture: The Seasonal Agricultural Worker Program remains unaffected by the new limitations and processes more efficiently (5 days). This helps farmers swiftly hire staff.
• High-Wage Sectors (Tech, Healthcare, Engineering): In high-wage sectors such as IT, healthcare, and engineering, employers must pay higher salaries to meet new requirements; however, the Global Talent Stream streamlines the processing.

Strategies for Employers and Workers

Here are some suggestions for employees and companies to negotiate the new LMIA Canada rules:

For Employers

• Review your pay to see if it qualifies under the new high-wage criteria. Statistics Canada’s pay statistics may assist.
• You may have to reclassify your work or increase pay if it no longer qualifies for the high-wage category.
• Especially in technology, healthcare, or engineering, plan for rising expenses.
• Plan your personnel wisely, as low-wage employment may now only last one year.
• Maintain accurate records of all your salary computations and hires.
• Educate your HR staff on the revised LMIA Canada regulations.
• Consult with immigration consultants to ensure you meet every fresh need.

For Workers

• Search for employment in cities that are still processing LMIA Canada applications, such as Vancouver or Winnipeg.
• Track the expiry date of your work permit if you were unable to renew or apply for a visitor record.
  Since the new regulations have less impact on them, they should look for employment in high-wage streams.

Take Professional Help From Licensed Consultants

The government will update the LMIA Canada to meet national demands. We may see stricter limitations or new pathways for highly skilled individuals to gain permanent residence. Employers should monitor additional developments and adjust their recruiting strategies accordingly.

Our team can help you understand:

• Understand the new requirements and collect the proper documents.
• Submit your LMIA Canada application correctly and on time.
• Stay informed about LMIA changes in Canada, and which regions are affected by unemployment rates.
• Avoid mistakes that could delay your application.

Find experienced LMIA Canada application help at Elaar Immigration Consulting Inc. Elaar, led by Regulated Canadian Immigration Consultant Keshav Sharma, helps firms like you negotiate LMIA adjustments and the Temporary Foreign Worker Program. You can contact our experts today to get started on your Canada visa application.