Labour Market Impact Assessment (LMIA)
Earlier referred to as Labour Market Opinion (LMO), and now called Labour Market Impact Assessment (LMIA), assists foreign nationals reach Canada for temporary work duration. Canada employer has to get approval from LMIA when foreign worker needs to be hired.
LMIA Process
Process begins by submitting two applications, one to the Employment and Social Development Canada (ESDC) for assessment, other to the Citizenship and Immigration Canada (CIC) to access work permit.
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Type of LMIA
- High-wage or low-wage LMIA
- LMIA for Agricultural Worker
- Dual Intent LMIA (Express Entry)
- LMIA for Caregiver
- Temporary Foreign Academic
- Temporary Foreign worker through Global Talent Stream
High Wage Position
Employers looking to hire high-wage workers must include transition plans with their LMIA applications to demonstrate their commitment to reducing reliance on temporary foreign workers over time. Examples of such measures include investing in skills training or hiring Canadian apprentices.
Alternatively, employers can show how they are supporting their high-skilled temporary foreign workers in obtaining Canadian permanent residency. If selected for an inspection or applying to renew their LMIA, employers must report on the progress of their transition plan.
These transition plans are intended to ensure that the Temporary Foreign Worker Program (TFWP) is used as a last resort for addressing immediate labor shortages, aligning with its purpose of addressing short-term labor needs while promoting long-term solutions.
Low Wage Position
Employers seeking to hire low-wage workers are not required to submit transition plans with their Labour Market Impact Assessment (LMIA) applications. However, they must adhere to specific guidelines.
To limit the use of the Temporary Foreign Worker Program and prioritize Canadian job seekers, the Government of Canada has implemented a cap on the number of low-wage temporary foreign workers a business can employ. Additionally, certain low-wage occupations may be excluded from LMIA processing. Employers with 10 or more employees applying for a new LMIA are subject to a cap of 10% on the proportion of their workforce that can be composed of low-wage temporary foreign workers.
Eligibility Criteria (for Canadian Employer)
- Application cost to submit application to LMIA is $1000.
- Official English and French languages have to be mentioned in job advertisements unless any another language is required.
- The job must be advertised in the Canadian job market for minimum 4 weeks before submitting application to LMIA. Besides advertising on Canada’s job market, employers must advertise job in 2 other recruitment methods/media.
- For high-pay positions, employers have to show transition plan to ESDC. The transition plan shows that the foreign worker hired will benefit Canada’s workforce.
- Canadian employer cannot fire Canada’ workers or reduce their work hours looking to hire foreign workers.
- Employer needs to give information about job description, number of Canadians applied, Canadians interviewed with other aspects (in detail) as to why a foreign worker is needed over Canadian citizen.
- Facility to be given to foreign worker as per LMIA requisites like accommodation, food Service, etc. has to be mentioned.
- The vacant job location should have an annual unemployment rate of over 6%.
- Airline position requisites are more.
How LMIA Gives Assessment Approval
LMIA assess that a foreign worker to be hired will not affect Canada’s labor market besides following:
- Wage offered is equivalent as per job location.
- Associated working conditions, labor laws and collective bargaining agreements.
- Shortage of labor in Canada.
- Hiring foreign worker will help Canadians to gain new skills.
- New skills will develop more jobs in Canada.
- Many other aspects are considered.
LMIA Exemption
There are provisions to hire foreign workers without any LMIA assessment under following International Mobility Programs:
- Foreign worker under North American Free Trade Agreement (NAFTA) / United States Mexico Canada (USMCA).
- Intra-company transferees.
- International Experience Canada called working holiday permit holders.
- Post-Graduates & Bridging Open workers.
- Academic exchange and doctoral fellows, teacher-professors, etc.
