Ottawa, ON – Canada has implemented a significant update to its Labour Market Impact Assessment (LMIA) program, raising wage thresholds for the Temporary Foreign Worker Program (TFWP) effective June 27, 2025. Announced by Employment and Social Development Canada (ESDC), the adjustment aims to align wages with inflation, rising living costs, and the country’s commitment to fair labour practices.
The new wage thresholds, varying by province and territory, determine whether a job falls under the high-wage or low-wage stream of the TFWP. Jobs offering wages at or above the updated thresholds are classified as high-wage, while those below are low-wage. This shift reflects Canada’s ongoing efforts to balance labour market needs with protections for both TFWs and Canadian workers. For instance, British Columbia’s threshold now stands at $36.60 per hour, a $1.98 increase, impacting sectors like tech and healthcare in Vancouver’s high-cost market.
Employers must adapt to the higher wage requirements, which may increase hiring costs and shift some positions from the low-wage to the high-wage stream. The latter involves stricter LMIA conditions, such as detailed recruitment efforts for Canadians. TFWs, meanwhile, stand to benefit from improved wages, enhancing financial stability and eligibility for immigration programs like Express Entry. This aligns with Canada’s goal to ensure competitive pay reflective of local economic conditions.
The update follows earlier changes, including a 20% wage threshold increase in November 2024, signaling a continued tightening of the TFWP. Restrictions on low-wage LMIA processing in regions with unemployment rates of 6% or higher, such as parts of British Columbia, remain in effect, with the next review due July 10, 2025. These measures address concerns over TFW program misuse and pressure on housing and social services.
ESDC encourages employers to review wage structures and consult immigration professionals to ensure compliance. TFWs seeking opportunities are advised to research regional wage differences and updated thresholds, available on the official TFWP website. As Canada refines its immigration policies, this adjustment underscores a commitment to a fair and sustainable labour market, with further updates expected as economic conditions evolve.
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