LMIA – Labour Market Impact Assessment

The LMIA is the document that the employer within Canada needs before hiring a worker for their company from another country. LMIA is provided by the Canadian government; to be more precise, it is provided by ESDC. It shows that the requirements for a job were not completely filled by the Canadian citizen or permanent resident, so the foreign worker is required to fulfill the needs effectively.

The LMIA Process

1. Advertisement for Jobs

It is the initial step to follow that the employers are required to advertise the job position to ensure that there is no Canadian citizen or permanent resident available to fill the role. The minimum time for the advertisement usually lasts for 4 weeks. To ensure wide publicity, the advertisement should be displayed in multiple places.

2. Recruitment

After advertising the job, employers need to go through a recruitment process. This includes gathering as well as reviewing applications, conducting interviews of candidates, and trying to hire the most suitable and qualified Canadian citizens or permanent residents. The employers have to create a comprehensive report of the efforts made for recruitment to show that a lot of efforts have been made to hire the local person but were not able to find the expected Canadian candidate.

3. Submission of an Application

Once the process of recruitment is complete, the employer submits the LMIA application to ESDC. This includes all supporting documents, such as proof of advertisement, recruitment efforts, and a detailed description of the job role as well as the reason for hiring international workers.

4. Making Changes to Pending LMIA Application

If you need to update your LMIA application that is still being processed, contact the Employer Contact Centre or Service Canada as soon as possible. To switch to a different LMIA stream, you must cancel your current application and apply again under the new stream. Remember that the fee you have paid for the application cannot be refunded or used for the new application.

5. LMIA Assessment by ESDC

ESDC reviews the application to verify that it meets all requirements. The assessment looks at things like how it will affect the Canadian job market, the wages offered, and the working conditions. If the application is approved, the employer receives a positive LMIA, which allows them to start hiring a foreign worker.

LMIA Pathways/Streams

• High-Wage | Low-Wage roles
• Agriculture Stream
• Permanent Residency
• Global Talent Stream (GTS)
• In-Home Caregiver/Nanny

High-Wage vs. Low-Wage Workers

• High-Wage Workers:

High-wage workers earn more than the average pay for their job in the area. These jobs are usually in fields like technology, healthcare, or engineering. Employers can more easily hire foreign workers for high-wage jobs because there is less concern about affecting the local job market. The rules for hiring high-wage workers through the LMIA process are generally more relaxed, and employers have more flexibility in getting approval.

• Low-Wage Workers:

Employers hiring low-wage employees through the TFWP do not need to submit transition plans with their LMIA applications but must follow certain rules. To make sure Canadian workers are considered first, the government limits low-wage foreign workers to 10% of a company’s staff if the business has 10 or more employees. Some low-wage jobs may not qualify for LMIA approval. Employers paying below the median wage for their province or territory must pay for the worker’s round-trip travel, provide affordable housing, offer private health insurance until provincial coverage begins, register the worker with the workplace safety board, and create a written contract. LMIAs for low-wage jobs in sectors like food services, accommodation, and retail won’t be approved in areas where unemployment is 6% or higher, except in Yellowknife, which has special approval because of its unique job market.

Average Hourly Pay Rates Across Provinces and Territories

Situations Where an LMIA Is Not Required

In some situations, employers do not need an LMIA to hire an international worker. These situations are typically covered under programs that allow for easier mobility of workers across borders. You can also learn about LMIA exemptions as well as other jobs that do not require a work permit.

Recognized Employer Pilot (REP)

The Recognized Employer Pilot makes it easier for employers who have a good history of following the rules when hiring foreign workers. It reduces paperwork and makes it simpler for these employers to submit applications in the future.

Processing Times for LMIA

Average processing durations

What Happens After the LMIA is Approved?

Once the LMIA application is reviewed, the employer will receive a decision. If the LMIA is approved (positive LMIA), then the employer becomes able to hire foreign workers. However, if the LMIA is denied (a negative LMIA), the employer cannot hire a foreign worker. Positive LMIA will last for 6 months from the approval date. After getting a positive LMIA, the employer should inform foreign workers so they can become able to apply for a work permit or permanent residency.

Benefits of Hiring Through an LMIA

For Employers

LMIA helps employers for hiring skilled workers from around the world to make it easier for you to hire the best and most professional people for your business. It supports growth, keeps businesses competitive, and builds a diverse team with new ideas as well as great success.

For Foreign Workers

LMIA gives workers job opportunities in Canada, helps them to grow their careers effectively in Canada, and can lead to permanent residency for long-term security. It also offers valuable work experience and a chance to explore a new culture.

How CWC Can Help?

CWC makes the LMIA process easy for employers by guiding them through every step and ensuring the application is done right. Whether you are hiring high-wage or low-wage workers, we help with recruitment, preparing documents, and submitting applications to improve your chances of approval. We also provide a FREE assessment to check your eligibility and support you throughout the process.