For foreign workers aiming to obtain a work permit in Canada and employers looking to secure talent, the Labour Market Impact Assessment (LMIA) is an extremely important procedure.

In particular, the eligibility to apply for an LMIA for Low Wage positions is heavily influenced by the unemployment rate in each region. On July 10, 2026, the Canadian government published the latest quarterly unemployment rate data, which will apply until October 8 of the same year.

In this update, while some major metropolitan areas transitioned to being eligible for applications, regions such as British Columbia (BC) saw further tightening of regulations, resulting in a stark contrast between areas.

Under the LMIA application restriction measures introduced by the Canadian government, LMIA applications for Low Wage positions are generally not processed in Census Metropolitan Areas where the recent unemployment rate is 6 percent or higher.

Because this unemployment rate data is updated every three months, cases frequently occur where an area that was eligible for applications last time suddenly becomes ineligible. Therefore, it is essential to always stay informed of the latest timeline.

Below is the official unemployment rate data that applies to LMIA applications submitted from July 10, 2026, to October 8, 2026.

Canadian Major Cities Unemployment Rate Trends and Latest Data

Source: Official Government of Canada (ESDC) Refusal to process a Labour Market Impact Assessment application

Due to this data update, the main regions where the unemployment rate dropped below 6 percent and processing of Low Wage LMIA applications has resumed are as follows. Many areas that were temporarily ineligible in the previous assessment have been relieved by this improvement.

• New Brunswick: Saint John (5.9%) and Fredericton (5.3%)
• Ontario: Kingston (5.3%) and St. Catharines Niagara (5.8%)
• Other Major Cities: Winnipeg (Manitoba: 5.6%) and Regina (Saskatchewan: 5.9%)

On the other hand, in British Columbia (BC), which is the most popular province among Japanese international students and Working Holiday holders, a very severe winter period continues.

The regional cities of Kamloops (7.0%) and Chilliwack (7.9%), which had previously been among the few eligible loopholes, have now faced a complete suspension of Low Wage LMIA applications due to a sharp deterioration in their unemployment rates announced this time.

Furthermore, the unemployment rate in the major metropolitan area of Vancouver has further increased from the previous 6.5% to 6.7%, maintaining a lockdown state where no LMIA applications for Low Wage positions can be processed. Major cities within BC that are eligible for applications are now practically limited to a very small number of areas, such as Victoria (4.6%).

Drastic Eligibility Changes in Major BC Areas

Those who were planning to extend their work permits or gain points for permanent residence based on obtaining a Low Wage LMIA in major metropolitan areas like Vancouver and Toronto, or in the BC regional cities that were closed this time, must urgently undertake a fundamental revision of their strategies.

To break through the current severe situation, you will primarily need to consider the following options to pivot your strategy.

• Transition to High Wage Stream: Change your occupation or increase your hourly wage to shift your LMIA application to the High Wage stream, which is exempt from unemployment rate restrictions.
• Review Exception Sector Requirements: Recheck whether your industry matches specific key sectors that are granted exceptions from the unemployment rate rules, such as agriculture, construction, healthcare, and caregiving.
• Relocation to Eligible Provinces: Consider moving to and finding employment in regions where Low Wage LMIAs are processed, such as Manitoba, Saskatchewan, or the Atlantic provinces, which saw data improvements in this update.

The rules for Low Wage LMIAs are designed to be completely at the mercy of the quarterly unemployment rate waves. There is always a risk that a winning pattern that was valid just a few months ago could collapse in an instant, as seen this time with Kamloops and Chilliwack.

This data update is a massive blow, especially for those who were aiming to extend their visas while staying in BC. Choosing to wait for the unemployment rate to drop is an extremely high risk strategy for applicants with a limited remaining visa validity period.

In order to legally maintain your stay and employment in Canada, you must make swift decisions aligned with current trends, such as whether you can shift to a High Wage position by changing your hourly rate or occupation with your current employer, or whether you should transition to an employer in another province that became eligible in this data update.

With the latest unemployment rate updates, many employers and foreign workers may be panicking, thinking they can no longer proceed with their planned LMIA applications or being unsure if their employment region is affected.

At Shiraishi Visa JP Canada, our free consultation carefully listens to your situation, including your current employment region, occupation, and visa expiration date, to clearly guide you through the current system based on the latest unemployment rate data and official government guidance announced this time.

• You want to confirm if your workplace area is included as an eligible target in this latest unemployment rate update
• You want to know the latest standards regarding the boundary between Low Wage and High Wage LMIAs or the general application flow

If this applies to you, please feel free to utilize our free consultation.

Please note that the free consultation is limited to listening to your current situation and providing general information and data regarding the LMIA system. Specific LMIA application strategy design based on an individual’s specific work history or an employer’s corporate situation, as well as concrete visa advice accompanying hourly wage increases, are provided through paid individual counseling and consulting by our government authorized consultants. Please start by organizing your current situation with our free consultation.

This article is a summary prepared by Visa JP Canada based on official information from Employment and Social Development Canada (ESDC), organized for clarity and ease of understanding.
Source (Last updated: July 10, 2026): Refusal to process a Labour Market Impact Assessment application (English)