November 7th, 2024 at 05:38 am

Canada Big Actions Taken Against 2.8 Million Immigrants: Canada Immigration | LMIA Black Market

The growing demand for jobs supported by LMIAs has caused Canada’s black market for LMIAs to reach previously unheard-of heights. Reports state that this increase is the result of recent government initiatives to lower immigration goals and restrict the number of temporary residents in the nation.

According to Immigration News Canada (INC), CBC investigations have revealed a significant rise in LMIA job postings from unlicensed organizations, brokers, and recruiters who are charging foreign nationals exorbitant fees for LMIA-backed positions.

Overview: LMIA Jobs

Employment in Canada that requires LMIA permission before a foreign worker can be hired is referred to as LMIA employment. When Canadian employers are unable to find suitable Canadian citizens or permanent residents to fill a position, they may hire foreign workers through an LMIA, which is a document issued by Employment and Social Development Canada (ESDC).

The purpose of the LMIA procedure is to guarantee that employing foreign workers won’t have a detrimental impact on the Canadian labor market. LMIA-backed employment may assist foreign workers obtain a work visa and earning points for applications for permanent residency under Canada’s immigration systems, including Express Entry.

The Reasons for the High Demand for LMIA Jobs

An applicant’s CRS score can increase by 50 points by landing LMIA-backed employment, making it a good choice for temporary residents looking to improve their chances of becoming permanent residents. This incentive has strengthened as a result of the federal government’s plan to decrease the number of permanent residency slots available, which has raised demand and raised the possibility of black market abuse.

Increased Activity in the LMIA Black Market

According to reports, a CBC study found a significant rise in LMIA job postings between July and September 2024, especially in Canadian locations with sizable immigrant populations like Brampton, Ontario. Online LMIA job postings increased dramatically during this time, rising from 29 in July to 97 by September.

According to INC, recent government initiatives restricting LMIA applications in high-unemployment cities are probably the cause of this spike.

Due to these limitations, LMIAs are increasingly concentrated on industries like healthcare and construction that are experiencing severe labor shortages. However because many temporary residents are looking for LMIA-backed positions to increase their prospects of gaining permanent citizenship in Canada, the accompanying demand has increased black market activity.

LMIA Jobs in the Black Market Are Expensive

According to INC, black-market operators charge temporary residents high prices, frequently between $20,000 and $40,000, for LMIA-backed positions, even though Canadian law compels employers to pay all LMIA-related expenses.

In order to get around the LMIA program’s stated purpose, certain employers and intermediaries acting as immigration consultants take advantage of this demand by offering LMIA employment, effectively enabling people to purchase a route to work permits and occasionally permanent residency.

Many temporary residents pay these fees because they have to or because they expect to eventually become permanent residents. However, by avoiding the official immigration procedure, this behavior jeopardizes the integrity of Canada’s job market and exposes workers to abuse.

Unethical Activities in the Black Market for LMIA

INC claims that the LMIA black market employs unethical practices that harm Canada’s immigration credibility as well as workers.

• Fraudulent Work Offers: To satisfy LMIA criteria, some people fabricate work offers that they don’t plan to fill. Since many of the listed occupations are just there to satisfy LMIA requirements, this practice compromises the integrity of Canada’s labor market.
• Underpayment and Worker Exploitation: Some employees who are employed under the LMIA system receive lower-than-average pay, and they may put up with subpar working conditions out of fear of being deported.
• Unlicensed Brokers and Consultants: Unregulated immigration agents act as middlemen between employers and foreign workers, charging exorbitant fees to help with LMIA applications. This drives up prices for job searchers.

Government Initiatives and Reform Requests

According to reports, Employment and Social Development Canada (ESDC), the agency that provides LMIAs, declared on October 21st that it would step up its efforts to combat LMIA abuse. To improve data exchange, strengthen job offer verification, and look into non-compliance cases—possibly to penalize offenders—ESDC intends to collaborate with provincial and territory administrations.

Critics counter that given the scope of the issue, further resources are required. Calls for more transparency have been sparked by ESDC’s failure to provide the number of agents participating in LMIA investigations or to offer specific updates on actions taken against unlawful vendors.

Increasing Demand and Scarce Routes for Short-Term Residents

The number of temporary residents in Canada has increased significantly, from 1.3 million in 2021 to over 2.8 million by the middle of 2024. Many temporary residents view LMIA-backed occupations as a last resort strategy to improve their prospects of staying in Canada because there are few paths to permanent residency.

Some experts advocate for better reporting procedures to shield employees from LMIA fraud, while others propose doing away with the permanent residence support component of LMIA posts in the CRS as a solution to these issues. To lessen exploitation, stronger sanctions for unlicensed LMIA dealers and increased worker mobility rights are also suggested.