Labour Market Impact Assessment (LMIA)

Immigration

The Labour Market Impact Assessment (LMIA) is a pivotal component of Canada's immigration system, playing a crucial role in ensuring that foreign workers are employed in a manner that aligns with the country's economic needs and labor market conditions. It is a comprehensive evaluation conducted by Employment and Social Development Canada (ESDC) to determine the potential impact of hiring a foreign worker on the Canadian job market.


This assessment involves a meticulous examination of factors such as the availability of qualified Canadian workers, wages, working conditions, and the overall need for the specific skill set the foreign worker brings. Understanding the intricacies of the LMIA process is vital for both employers seeking to hire foreign talent and for individuals aiming to work in Canada. This guide aims to provide a comprehensive overview of the LMIA process, its various streams, and its significance in the broader context of Canadian immigration.

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Labour Market Impact Assessment

In the majority of cases, a Canadian employer seeking to hire a foreign worker must first obtain government approval before the foreign worker applies for a work permit. This process, known as the Labour Market Impact Assessment (LMIA), entails various steps, including thorough advertising efforts.


These actions are taken by the Canadian employer to assess whether hiring a foreign worker will have a positive or neutral impact on the Canadian job market. It is crucial to ensure that qualified Canadians were not overlooked in favor of the foreign worker, and that the foreign worker will receive a salary and benefits in line with federal and provincial standards.


Before initiating the LMIA application, we carefully evaluate which stream is best suited to meet the specific recruitment needs of the Canadian employer. This includes considering options like the Temporary Foreign Worker Program, specifically the Labour Market Impact Assessment application process.


The LMIA process encompasses different streams based on wage levels and types of workers, including high wage workers, low wage workers, and foreign agricultural workers. Canadian employers under the Temporary Foreign Worker Program are required to obtain a neutral or positive LMIA, a comprehensive application processed by Employment and Social Development Canada (ESDC). This involves demonstrating recruitment efforts, providing selection reports, and establishing the inability to find a Canadian citizen or permanent resident with the necessary skills and expertise.


Once a positive or neutral LMIA is obtained, the employer provides a copy of the approval, along with a detailed job offer letter, to the foreign worker they intend to hire. The foreign national can then proceed with the LMIA-based work permit application, which requires a different set of documents including proof of employment experience and the ability to fulfill the required job duties. It's important to treat this application process with great care, as the LMIA approval letter does not guarantee automatic approval for a work permit.


Temporary Foreign Worker Program

Introducing the Global Talent Stream (GTS) - An Expedited LMIA Process


The Global Talent Stream (GTS) is a groundbreaking initiative launched in June 2017, as a collaborative effort between Immigration, Refugees and Citizenship Canada (IRCC) and Employment and Social Development Canada (ESDC). Tailored to elevate the competitive edge of select Canadian employers, this two-year pilot program is designed to facilitate the recruitment of highly-skilled international professionals on a global scale through an accelerated hiring process under the Global Skills Strategy.


Expedited LMIA Application Processing


Under specific circumstances, there exists an opportunity to fast-track the processing of LMIA applications, allowing for a swift ten-business day turnaround, provided the application satisfies at least one of the following criteria (subject to certain restrictions):


  • Highest-Paid Positions:
  • The positions requested offer a prevailing wage equivalent to or surpassing the top 10% of wages earned by Canadians or permanent residents in the respective province or territory of employment.


  • Skilled Trades:
  • The positions pertain to skilled trades listed under eligible occupations.
  • The wage offered meets or exceeds the provincial or territorial hourly median wage.


  • Short Duration Employment:
  • The requested positions involve a period of employment lasting 120 calendar days or less.
  • Additionally, the wage offered for these positions meets or surpasses the provincial or territorial hourly median wage.


Express Entry Support

Furthermore, this program extends support for skilled workers seeking permanent residence under Immigration, Refugees and Citizenship Canada's Express Entry eligible programs through a valid job offer.


The Global Talent Stream stands as a testament to Canada's commitment to fostering a dynamic and globally competitive workforce, ushering in a new era of international collaboration and innovation.


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Frequently Asked Questions

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Labour Market Impact Assessment (LMIA)

  • What is an LMIA?

    An LMIA, or Labour Market Impact Assessment, is a document issued by Employment and Social Development Canada (ESDC) that assesses the impact of hiring a foreign worker on the Canadian job market.

  • Who needs an LMIA to work in Canada?

    Most foreign workers need an approved LMIA before they can work in Canada. However, certain exemptions exist, such as workers covered by international agreements (e.g., NAFTA, GATS) or specific programs (e.g., Working Holiday, Intra-Company Transfers).

  • How does an employer apply for an LMIA?

    Employers must submit an application to ESDC, providing details about the job, recruitment efforts, and how hiring a foreign worker will impact the Canadian job market.

  • What is the processing time for an LMIA application?

    The processing time for an LMIA application can vary, but standard processing times are generally several weeks. However, expedited processing is available for certain eligible applications.

  • What are the criteria for expedited processing of an LMIA?

    Expedited processing may be granted if the job position is among the highest-paid, falls under skilled trades, or is for a short duration of 120 days or less.

  • Can an employer hire a foreign worker without an approved LMIA?

    In some cases, employers may be exempt from the LMIA requirement, such as through the Global Talent Stream or specific international agreements.

  • Can LMIA applications be appealed or reconsidered if denied?

    Yes, employers have the option to request a review or reconsideration of an LMIA decision. This involves providing additional information or addressing any concerns raised by ESDC.

  • What are the responsibilities of an employer after receiving a positive LMIA?

    After obtaining a positive LMIA, the employer must provide a copy of the approval to the foreign worker and assist them in applying for a work permit from Immigration, Refugees and Citizenship Canada (IRCC).

  • Can a foreign worker change employers with a positive LMIA?

    A foreign worker can only work for the employer specified in the positive LMIA. If they wish to change employers, a new LMIA application is typically required.

  • Are there any fees associated with the LMIA application process?

    Yes, there is a processing fee for most LMIA applications. The amount varies depending on the type of application and the number of positions requested.