Canada Updates LMIA Processing Times Amid Tighter Temporary Foreign Worker Admissions

Employment and Social Development Canada (ESDC) released its latest Labour Market Impact Assessment (LMIA) processing times on June 9, 2026, providing updated wait times for employers seeking to hire foreign workers under the Temporary Foreign Worker Program (TFWP). The data reflects changes in processing duration across various LMIA streams and corresponds with broader federal efforts to reduce temporary resident numbers in Canada.

The LMIA process requires employers to obtain a neutral or positive assessment from ESDC before hiring a foreign national through the TFWP. This labour market test serves to confirm that no suitable Canadian citizen or permanent resident (PR) is available for the role, and that hiring a foreign worker is not expected to negatively impact the Canadian labour market. Once an LMIA is granted, the employer provides the foreign worker with a decision letter and an offer of employment, which is then included in the work permit application to Immigration, Refugees and Citizenship Canada (IRCC).

According to ESDC, LMIA processing times are influenced by several factors, including the selected stream, the completeness of the application, and current processing volumes. The published processing times do not include the period required to meet minimum advertising requirements, which can range from 14 days to eight weeks depending on the stream and must be satisfied within the three months prior to LMIA submission.

The May 2026 update indicates that LMIA wait times have increased in nearly all TFWP streams compared to April, with the exception of the permanent resident (PR) stream, which saw an improvement of nearly one month. The low-wage stream experienced the most significant increase in wait times. For this stream, LMIAs are processed only in regions where the unemployment rate is 6% or higher. The list of ineligible regions is updated quarterly, with the next revision scheduled for July 10, 2026.

The high-wage stream, which covers positions offering at least 20% higher wages than provincial or territorial thresholds, was the only TFWP stream aside from the PR stream to avoid a notable increase in wait times. Meanwhile, the Global Talent Stream, designed to expedite processing for select high-demand occupations, continued to meet its 10-day service standard.

Canada’s Job Bank, which aggregates LMIA-supported job postings from employers who have already received or applied for an LMIA, listed nearly 5,400 available positions at the time of the update. This platform is used by both employers and job seekers to facilitate matches for roles requiring an LMIA.

The process for obtaining a work permit following an LMIA approval is distinct from the LMIA processing period. The validity of a foreign national’s work permit is determined by the duration recommended by ESDC during the LMIA process. Some applicants may be eligible to submit their work permit applications while the employer’s LMIA is still pending, through IRCC’s concurrent processing measures.

In certain scenarios, foreign nationals may apply for a work permit without requiring their employer to obtain an LMIA. Such LMIA-exempt work permits are processed under the International Mobility Program (IMP), which covers categories including intra-company transferees and participants in international agreements.

The updated LMIA processing times come against the backdrop of a significant reduction in planned admissions under both TFWP and IMP. For 2026, the Canadian government’s intake target for the TFWP is 60,000 workers, down by 82,000 from the 2025 target. This policy change is reflected in admissions data: from January to April 2026, 14,655 workers were admitted under the TFWP, marking a 25.6% decrease from the same period in 2025 and a 53.6% decrease compared to 2024.

These reductions align with the government’s broader objective of limiting the temporary resident population to less than 5% of Canada’s total population by 2027. A corresponding decline in TFWP work permit issuances may also reduce the volume of LMIA applications, which in turn could contribute to shorter processing times in the future.

The IMP has also experienced a significant contraction in planned admissions, down from 285,750 in 2025 to 170,000 in 2026. From January to April 2026, Canada admitted 15.3% fewer workers through the IMP compared to the same period in 2025, and 69.4% fewer than in 2024.

The LMIA process and related policy changes have implications for Canadian employers, foreign workers, and the broader labour market. For employers, extended processing times in several streams may affect workforce planning and operational timelines. For prospective foreign workers, the evolving admission caps and processing timelines shape the availability and predictability of temporary employment opportunities in Canada.

The quarterly update to regions eligible under the low-wage stream, including the forthcoming revision on July 10, 2026, remains a factor for employers operating in lower-wage sectors. The Global Talent Stream’s continued adherence to a 10-day processing standard stands in contrast to delays in other streams, providing an expedited pathway for some high-skill occupations.

The government’s approach to temporary foreign worker admissions and LMIA processing times forms part of a wider strategy to balance labour market needs with population management objectives. These measures are being monitored by stakeholders, including employers, industry groups, and immigration advocates, as they adapt to changing regulatory and operational conditions.

As ESDC continues to update LMIA processing times and adjust eligibility criteria, employers and foreign nationals are advised to monitor government communications and planning tools such as the Job Bank for the latest information on hiring and employment pathways.