Quebec Extends Suspension on Low-Wage TFW LMIA Applications

Quebec has officially extended the pause on Labour Market Impact Assessment (LMIA) applications for low-wage positions under the Temporary Foreign Worker (TFW) Program until November 30, 2025. Originally introduced in August 2024 for six months, the suspension was scheduled to end on March 3, 2025, but will now remain in effect for an additional nine months.

This extension has significant economic and employment implications, affecting businesses that rely on foreign labor while pushing employers to prioritize hiring local workers.

Table of Contents

• Background of the Suspension
• Regions Affected by the LMIA Pause
• Impact on Employers and Businesses
• Sectors Exempt from the Suspension
• Why Quebec Extended the LMIA Suspension
• Future Outlook and Considerations
• Conclusion
• Frequently Asked Questions (FAQs)

Background of the Suspension

The Temporary Foreign Worker (TFW) Program is designed to help Canadian employers fill labor shortages when local workers are not available. However, due to the increasing influx of low-wage temporary foreign workers, Quebec decided to pause LMIA applications for these roles.

The suspension was initially a temporary six-month measure to assess the impact of foreign workers on local employment and ensure fair job opportunities for Canadian residents. However, the Quebec government now believes that extending this pause will further support local job seekers while stabilizing the labor market.

Employers hoping to hire low-wage foreign workers in affected regions will need to adjust their recruitment strategies as a result of this extension.

Regions Affected by the LMIA Pause

The LMIA suspension initially impacted specific municipalities within the Montréal economic region but has now expanded to include Laval, Quebec.

Here’s a list of all affected municipalities:

• Baie-d’Urfé
• Beaconsfield
• Côte-Saint-Luc
• Dollard-des-Ormeaux
• Dorval
• Hampstead
• Kirkland
• L’Île-Dorval
• Laval
• Montréal
• Montréal East
• Montréal West
• Mount Royal
• Pointe-Claire
• Sainte-Anne-de-Bellevue
• Senneville
• Westmount

If your business operates in one of these regions and relies on low-wage TFWs, you will need to explore alternative workforce solutions.

Impact on Employers and Businesses

The LMIA application suspension means that employers cannot submit new applications for low-wage positions where wages fall below Quebec’s minimum threshold of $27.47 CAD per hour.

What This Means for Businesses:

• Higher Recruitment Challenges – Employers who depend on low-wage foreign labor will face difficulties filling positions.
• Increased Hiring Costs – Employers may need to raise wages or offer better incentives to attract local workers.
• Possible Labor Shortages – Industries that heavily rely on TFWs may experience delays and operational disruptions.
• Shift in Hiring Strategies – Businesses must restructure hiring plans to comply with Quebec’s policies.

Industries such as retail, hospitality, and manufacturing will feel the greatest impact due to their reliance on low-wage workers.

Sectors Exempt from the Suspension

Certain essential sectors are exempt from the LMIA pause, meaning they can continue to hire low-wage foreign workers.

• Agriculture – Farms and agribusinesses need laborers for planting, harvesting, and food production.
• Education – Schools and daycare centers require additional staff.
• Social Services – Support workers for elderly care, disability services, and child protection.
• Construction – Skilled and general laborers for Quebec’s ongoing infrastructure projects.
• Food Processing – Factories that handle food production and packaging.
• Healthcare – Hospitals, nursing homes, and private care providers.

Additionally, LMIA applications submitted before September 3, 2024, or already approved applications, will not be affected by the suspension.

Why Quebec Extended the LMIA Suspension

The government’s decision is driven by a few key economic and labor factors:

• Encouraging Local Employment – Quebec wants employers to prioritize hiring Canadian workers before relying on TFWs.
• Addressing Wage Concerns – Raising the threshold wage ensures fair pay for workers and reduces dependence on low-wage labor.
• Balancing the Job Market – The suspension gives time to evaluate labor trends and address worker shortages locally.

This move is part of Quebec’s broader economic strategy to strengthen local employment opportunities while ensuring businesses remain competitive.

Future Outlook and Considerations

What can businesses and foreign workers expect in the coming months?

• Possible Adjustments – If labor shortages become critical, Quebec might revise its suspension policy.
• Wage Increases – Businesses may need to raise wages to attract local workers.
• Exploring Other Immigration Pathways – Employers should consider hiring through Provincial Nominee Programs (PNPs) or Work Permits that do not require LMIA approvals.
• Government Monitoring – The policy is subject to review, meaning further extensions or modifications could occur.

Employers should stay updated on Quebec’s labor policies and explore alternative workforce solutions to ensure business continuity.

Conclusion

The extension of the LMIA suspension for low-wage temporary foreign workers in Quebec brings significant challenges for employers while reinforcing the province’s commitment to prioritizing local labor.

If your business is affected, it’s crucial to adapt recruitment strategies, consider alternative hiring options, and stay updated about policy changes.

Frequently Asked Questions (FAQs)

Q1. Why has Quebec extended the LMIA suspension for low-wage temporary foreign workers?

Ans: Quebec extended the LMIA suspension to encourage local employment, ensure fair wages, and balance the labor market by reducing reliance on low-wage temporary foreign workers.

Q2. Which regions are affected by the LMIA suspension?

Ans: The suspension initially applied to specific municipalities in the Montréal economic region but has expanded to include Laval and other areas such as Pointe-Claire, Westmount, and Côte-Saint-Luc.

Q3. Are there any exemptions to the LMIA suspension?

Ans: Yes, industries such as agriculture, education, healthcare, social services, construction, and food processing are exempt from the suspension and can continue hiring low-wage foreign workers.

Q4. How will this suspension impact employers and businesses?

Ans: Businesses relying on low-wage TFWs may face labor shortages, increased recruitment costs, and challenges in filling positions, leading to possible wage increases to attract local workers.

Q5. What alternatives do employers have to hire foreign workers?

Ans: Employers can explore hiring through Provincial Nominee Programs (PNPs), open work permits that do not require LMIA approval, or adjusting their recruitment strategies to attract local talent.

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