Canada Updated Low-Wage Work Permit Restrictions
The federal government added six regions to the processing freeze list while removing two others.
Updated on Oct. 14, 2026 in Employment
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Canada has revised its list of regions where low-wage foreign worker permit applications are currently paused. The updated policy reflects shifting regional unemployment rates and impacts dozens of areas across the country.
Why it matters
These restrictions aim to limit reliance on low-wage foreign labour in areas experiencing high unemployment. By pausing Labour Market Impact Assessment processing, the government seeks to prioritize local job seekers in affected markets.
Restrictions apply to regions with an unemployment rate of at least 6%, with low-wage positions defined as 120% of the provincial or territorial median hourly wage. A total of 24 regions currently remain on the restricted processing list.
The players
Employment and Social Development Canada
This federal department is responsible for the development and implementation of labour market policies, including the administration of the Temporary Foreign Worker Program.
The details
Employment and Social Development Canada will not process new applications for low-wage positions in restricted regions, though exceptions remain for employers in agriculture, construction, and healthcare. Employers in all other sectors must secure a Labour Market Impact Assessment to hire foreign workers in these areas.
Timeline
September 2024: Government introduced broader work permit restrictions.
November 8, 2024: Minimum wage threshold for low-wage positions was raised.
October 9, 2026: Updated regional work permit restrictions took effect.
January 7, 2027: Current work permit processing freeze expires.
Macro View
This policy update follows a pattern of tightening measures for the Temporary Foreign Worker Program low-wage stream. It reflects a broader shift toward aligning foreign labour intake with localized economic data rather than historical national averages.
Employers in sectors like agriculture, construction, and healthcare retain their exemption status and can continue processing applications as usual. Businesses in other sectors located in the six newly restricted regions will face a pause in hiring new foreign workers for low-wage roles.
The takeaway
Businesses should verify their region's status on the federal list before planning foreign recruitment cycles. Those in restricted sectors should prepare for potential delays in securing labour permits until the policy expires in January.
What happens next
The current freeze on processing low-wage Labour Market Impact Assessments is scheduled to expire on January 7, 2027.
Further reading
For more on the current labour market, visit Employment.
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