5 Things to Know about Labor Market Impact Assessments (LMIA)

While some foreign employees in Canada are exempt from the Labour Market Impact Assessment (LMIA), others are not. Before employing a temporary foreign worker, certain Canadian firms require an LMIA. Before filing for a work permit, the foreign national must receive this document. It confirms if the entry of a foreign worker will benefit or have no impact on the labor market in Canada.

Note: This document is not needed in LMIA-exempt jobs for an employer to approve a foreign national’s application for a work permit.

Many foreign nationals seeking employment in Canada may be attempting to expedite their immigration process in light of the recent declaration made by Immigration, Refugees, and Citizenship Canada (IRCC) that the number of temporary residents in Canada will be reduced over the next three years. As a result, this essay will walk readers through the responses to five frequently asked questions regarding LMIAs that many international workers have.

What is an LMIA?

In addition to what was previously mentioned, LMIAs are paperwork that verifies the employer’s ability to hire a foreign worker once they are authorized. Note: A confirmation letter is another term for a positive LMIA.

How can I tell if I require an LMIA?

Employers normally need an LMIA to hire foreign workers, unless they qualify for an exemption. Exemptions from and requirements under the LMIA are dependent on several circumstances. The official Government of Canada website has additional information regarding LMIA requirements and exemptions.

Why is a second LMIA required to prolong my work permit?

A foreign national must confirm the validity of their LMIA before applying for a work visa in Canada. Put another way, a foreign worker’s LMIA must still be valid at the time they apply for a work permit, even though a work permit may be granted for a longer duration than the LMIA itself.

Before an employee can apply for a new work permit or an extension of their current one, their employer must obtain a new LMIA if the foreign worker’s first work permit expires and they wish to continue working in Canada.

Furthermore, employers must be aware that Employment and Social Development Canada (ESDC) will start the evaluation procedure anew and handle the case as if it were a new application when they apply for a new LMIA. If necessary, EDSC will be able to verify that no Canadian citizens or permanent residents are still available to fill the role of temporary foreign worker as part of this new application.

Does working as an entrepreneur in Canada require having an LMIA?

To apply for a work permit in Canada, entrepreneurs do not need to have an LMIA. However, foreign nationals who come to work as entrepreneurs in Canada need to demonstrate that the company they plan to run here will either:

• Generate or preserve major advantages for society, culture, and economy
• Preserving or generating employment for citizens or permanent residents of Canada

As an application for Express Entry, how can an LMIA help me get more CRS points?

While candidates under the Canadian Experience Class (CEC) are not required to have an LMIA to be qualified for this economic immigration program, it could nevertheless be advantageous for them and for all other Express Entry candidates, in general, to get an LMIA from their employer.

• The candidate will be eligible to receive additional Comprehensive Ranking System (CRS) points as an Express Entry applicant if they have a legitimate employment offer backed by an LMIA.
• As a result, candidates who receive an LMIA may have a higher probability of being invited to apply (ITA) for permanent residence in Canada from the IRCC.

Recent IRCC news about LMIAs

On March 21, Employment Minister Randy Boissonnault and Immigration Minister Marc Miller jointly announced several modifications to Canada’s Temporary Foreign Worker Program (TFWP). The two ministers declared that one of the modifications would be a restoration to the pre-pandemic standard of six months for each LMIA’s validity period. The date of this modification is May 1, 2024.

During the COVID-19 epidemic, Canada temporarily extended the validity of LMIAs for 12 months before this policy adjustment. The goal of this policy was to “help ease labor market conditions” nationwide.

Canada Modifies the Temporary Foreign Worker Program

Modifications to the Temporary Foreign Worker Program (TFWP) in Canada have been announced by Employment Minister Randy Boissonnault and Immigration Minister Marc Miller. This narrative is still evolving. This press conference included further announcements. Updates will be provided by NewsNowGh when new information becomes available.

Canada implemented several short-term policies to help improve labor market circumstances during the pandemic. But Canada has now started to remove these interim policies. “The state of the economy has changed since then. Some of these measures are no longer necessary, according to Minister Boissonault, as the gap between unemployment and job openings is shrinking and the labor market is becoming more competitive.

The TFWP was created to grant work permits to foreign nationals who can assist in bridging Canada’s workforce shortage. Companies in Canada that want to use the TFWP to hire foreign workers must provide a Labour Market Impact Assessment (LMIA) to bolster their application, proving that no suitable Canadians or permanent residents were available to take the position.

During the pandemic, Canada temporarily extended an LMIA’s validity duration to 12 months to improve labor market circumstances. The validity duration of an LMIA will now return to six months as of May 1st, 2024. Note that this change will not affect employers who are a part of the Recognized Employer Pilot program.

The proportion of low-wage workers who applied through the TFWP to a Canadian business’s workforce cannot exceed 20%. In 2022, Canada raised that ceiling to 30%, but only temporarily and only for specific industries. Only the construction and healthcare industries will be permitted to employ up to 30% of their personnel with low-wage TFWP work permits as of May 1st, 2024.

Note that seasonal employers and the agriculture industry will continue to benefit from the cap exemption.

Final Thoughts

These adjustments are being made as Canada works to improve the integrity of its immigration laws, which are crucial to the country’s economy. A rapid and unsustainable surge in international student enrollment has prompted Canada to propose modifications to its Post-Graduation Work Permit (PGWP) program, including a cap on study permits.

“Canada’s number of temporary residents has grown dramatically recently, and as of 2023, it might account for 2.5 million, or 6.2% of the country’s total population. Over the next three years, we want to reduce the number of temporary residents to 5%,” stated Immigration Minister Marc Miller.

Every new family and resident should have access to the resources they require and be prepared for success. Our ultimate objective is to guarantee a sustainable, well-managed immigration system that is needs-based.