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LMIA

Labour Market Impact Assessment

The LMIA or the Labour Market Impact Assessment is the best route to follow if you wish to have a Canadian job offer and get your work permit too. Nevertheless, workers all over the world and the employers from Canada must know that the process of LMIA might be far from just straightforward.

This page provides an outline of the LMIA system of Canada for work permits, which includes being eligible and also knowing the process of the LMIA application.

What is Labour Market Impact Assessment?

The LMIA process of Canada gives us proof that no permanent resident or a Canadian citizen is primed, willing, and are able to fill in a particular situation in Canada, and so the employer is given the opportunity to hire an overseas worker. To acquire an LMIA, employers must put the position to the public for at least a month and thereby interview the candidates who are either permanent residents or citizens of Canada.

If the business however proves that the interviewees failed to get the job, then the business could give a green light to employ a foreign worker. The worker is then asked to apply for a Canadian work Permit, in which LMIA provides support and before starting to work in Canada.

The application of LMIA is very brief and requires an abundant amount of statistical classification and documentation. For instance, Numerical breakdown of the Canadian number of applicants for a certain position, the number of job offers made, and the figures of applicants who are unqualified. Employers must give a description in writing of the reason behind why the un-hired Canadian could not be considered qualified for the job. Not all types of work permit require an issuing of the LMIA. The streams of work permit that exempts LMIA, come under the International Mobility initiative.

Note: This page talks about the process of LMIA under TFWP or the Temporary Foreign Worker program. To know the functioning of the LMIA process coinciding with the selection system that is the Express Entry immigration. Please visit our Express Entry Page to get better insights.

Please keep a note that the Province of Quebec has some different policies and processes with regards to LMIAs. Refer here, to get complete information on the process of Quebec’s LMIA.

On this page

  • The Temporary Overseas worker program
  • Requirements of LMIA
  • Transition plans of an employer
  • Temporary overseas workers with a low wage cap.
  • Refusing the LMIA process
  • Fees for application
  • Auditing of TFWP
  • Communication as the key
  • What else should the job finders know?

The Temporary Overseas worker program

The Employment and Social Development of Canada department evaluate the LMIA process of Canada overseas. As per the Analysis, ESDC will take the following elements into consideration for the job offer:

  • Is the foreign worker being offered a salary persistent with the occupation area’s average where the position is situated?
  • Are the conditions of work coherent with the labor laws and/ or the agreements of collective bargaining.
  • Is there a shortage of labor for that occupation area the position is situated in?
  • Is there a continuous labor dispute in the industry or/and in the company?
  • Has the employer situated in Canada tackled efforts in order to seek a Canadian that would fill that position?
  • Will the overseas worker be talented enough to pass on the expertise and the unique skills to Canadians?
  • Will employing an overseas worker help to retain or create jobs for the citizens of Canada?
  • Will the overseas worker be a Canadian employer’s employee, by which the overseas worker is going to anticipate a full-time work based at a wage that is pre-determined?

The TFWP has a division of two streams for workers who are low skilled and one for High Skilled. The Skill level positions 0, A, and B of the system of NOC or National Occupational Classification are located in the Higher-Skilled category. The Skill level positions of C and D are located in the category of Lower Skilled.

The two of the Streams carry sub- Streams further:

  1. The High Skilled Occupations Stream- Workers with a Higher wage.
  2. High Skilled Occupations Stream- Workers with a Lower Wage.
  3. The Lower Skilled Occupations Stream- Workers with a higher wage.
  4. The Lower Skilled Occupations Stream- Workers with a Lower Wage

Situations where the prevailing wage rate as laid by ESDC, is underneath the territorial or provincial median wage will consider the low wage. The positions where the persisting wage is at or above the territorial or provincial median wage will consider the High wage.

Province / Territory Wage ($/hour)
Alberta $27.28
British Columbia $25.00
Manitoba $21.60
New Brunswick $20.12
Newfoundland and Labrador $23.00
Northwest Territories $34.36
Nova Scotia $20.00
Nunavut $32.00
Ontario $24.04
Prince Edward Island $20.00
Quebec $23.08
Saskatchewan $24.55
Yukon $30.00

Therefore, when evaluating the particular stream to follow:

  1. Recognize the skill level of the Job title inside the NOC matrix.
  2. Evaluate whether it is a Lower Skilled or  Higher Skilled.
  3. Visit www.jobbank.gc.ca and click,” By Wages” in the menu.
  4. Type the NOC Job title code or the name.
  5. Track the geographic location of where the job is situated.
  6. Recognize the ” Median Wage” for that particular location. This will be the “Prevailing rate of wage” for this specific occupational area.
  7. Evaluate the prevailing rate of wage against the territorial/ provincial median wage cataloged in the above chart.
  8. If the prevailing rate of rate is beneath the territorial or provincial median wage, it will be considered as a low wage. If the persisting wage rate is above the territorial/ Provincial median rate of wage, then the High wage will be taken into consideration.

Requirements of LMIA

Occupations for processing priority at the time of Covid-19.

    1. The Higher Skilled Occupations Stream- Workers with a High wage
      1. Provincial/ National Job Bank for at least 4 Weeks( must remain attached until the issuing of the LMIA)
      2. Two other advertising sources, one of which must be of the national
        Employers must fill in a brief transitional plan (explanation in the next Section)
    2. The Higher Skilled Occupations Stream- Workers of a lower Wage.
      1. Provincial/ National job Bank for at least 4 weeks( must be posted until the issuing of the LMIA)
      2. Two other advertising sources, one of which is national.

Cap on a lower Wage short term foreign workers.

Employers having 10 or more employees bearing on a new LMIA under this stream are subject to a cap, that is 10 percent of short-term foreign workers who may be hired at the worksite. There are irregularities to the cap on temporary foreign workers with a low wage.

  1. The Lower Skilled Occupations Stream- High wage workers.
    1. Provincial/ National Job Bank for at least 4weekss( must be posted until the issuing of the LMIA)
    2. Two other advertising sources, one of which must pick out on under-represented groups.

    Transition Plan
    Employers must fill in a briefed transition plan( explanation in the next section)

  2. The Lower Skilled Occupations Stream-Workers with Low Wage
    1. Provincial/ National Job Bank for at least 4 weeks( must be posted till the Issuing of LMIA)
    2. Two other advertising sources, one of which must be a pick out for groups under-represented

Caps on Temporary Overseas workers with a Low -wage

Employers having 10 or more employees giving their application for a fresh LMIA under this stream are subject to 10 percent cap of temporary overseas workers who may be hired at that worksite (explanation is given below)

The LMIA process was facilitated by the Province of Quebec.

Employers of the Quebec Province can fill in the chosen positions without the inclusion of any evidence of recruitment efforts. The catalog of eligible Occupations for the LMIA process that is functional is currently available ( French Page Content)

*In the British Columbia Province, employers must be registered with the government of the province in order to employ a temporary overseas worker with the help of LMIA.

You can get an expert who will answer all your questions, whether you be a Canadian Employer or a candidate with a job offer, you can indulge in a conversation with an experienced professional in order to simplify the process.

Transitional Plan of an Employer

Employers who use the process of LMIA to employ overseas workers does show steps that are adequate to reduce relying on temporary overseas Workers with time. Employers will be expected to dynamically indulge in activities to recruit, employ and train Canadians.

Canada will be needing employers to tackle activities along with the Advertising requirements and existing recruitment. These include:

  1. Three additional activities of recruitment
  2. One additional activity that targets groups that are under-represented (aboriginal people, Disabled Canadians, youth, and the aboriginals.
  3. One activity that will assist temporary overseas workers to transition to Permanent residency (like providing them with the Job offers that would be permanent)

Employers will have to prepare projected estimations of the Canadian Citizens/ Permanent Residents they might recruit through these activities. They would also be required to supply suggested timelines for the outlined activities.

Lastly, employers will be needing to report results to ESDC with regards to activities they executed as a segment of the transition plan. The results would be in comparison to the yielded projections and will be measured if the employer is examined or turns out to apply again for an LMIA in the future.
Employers can ask for an exemption from needing to submit a transition plan provided if they prove that the applied position will be requiring a unique skill set or is project/ contract based.

Temporary Overseas Worker With A Low Wage Cap

Employers having 10 or more employees who are putting in an application for a new LMIA are subject 10 percent Cap of TFWs who may be hired in positions of a lower Wage.

Refusing the LMIA Process

ESDC will not process LMIA applications any longer in the Food services, accommodation, and Sectors of Retail trade for certain positions with a rate of unemployment at or above 6 percent, barring for a smaller number of postal codes in Yellowknife, NWT.

The Refusal of Alberta to process occupations list.

The Duration of Work Permit
For all positions that are of low wage, the work permit duration set out in LMIA is shortened to 1 year at its maximum.
10- Day Highest Demand Processing
Shortest Duration and Highest paid occupations
LMIAs for a really high demand occupation, highly paid ( Top 10 percent) or short-duration work periods( 120 days or less) are given within service standard of 10 business days.

A Towering Demand occupations list:
The service standard which is of 10 days is restricted to the skilled trades where the persisting rate of wage is at or above the territorial/ provincial median wage.
A catalog of Skilled trades that has eligibility for 10 days of Speed Service.

Occupations with the Highest Pay:
If the persisting wage rate of the occupation is above the indicated figure given below for the Province with regards to the application of LMIA, the application is deemed to be evaluated for 10 business days or less.

Province / Territory Wage ($/hour)
Alberta $52.20
British Columbia $45.00
Manitoba $43.27
New Brunswick $39.90
Newfoundland and Labrador $45.00
Northwest Territories $59.52
Nova Scotia $40.87
Nunavut $58.00
Ontario $48.08
Prince Edward Island $38.46
Quebec $44.23
Saskatchewan $46.15
Yukon $48.08

Occupations with the Shortest Durations

The 10- day service standard would be available for employers looking to employ temporary overseas workers for a tenure of 120 calendar days and where the persisting occupation wage rate is at or above the median wage of the territory or province.

Fees for Application of LMIA

For every requested Job position, employers will have to pay an application fee of CAD $1000. This fee is per position, not application, and workers should not pay this fee.

Therefore, if the application of LMIA is requesting for 10 positions, the due amount of the application fee would be CAD$10,000.

Auditing of TFWP

Employers are responsible for the promises they make in the applications for LMIA.

Particular emphasis is on the suggested activities in their plans for transition. ESDC often goes after employers through audits. ESDC will also evaluate putting forward results if the employers decide to reapply.

Communication is the Key.

Employers looking to employ with the assistance of an LMIA must be capable of articulating business challenges, as well as control an abundance of details. No secret formula is available to obtain a positive LMIA.

It’s more about having the briefed guidelines followed, being attentive towards minutiae, and giving a fluent position. Most of the program officers are educated, reasonable, and get an insight into a broad number of industries all over Canada. Their decisions are mostly on market indicators z internal labor as well as Information that the employer submits. A positive LMIA can only be issued provided these two things intersect correctly.

Program officers are really hard at the employers who would want to avoid the system. They don’t take things too kindly towards dishonest employers who are really filthy and fraudulent with the recruitment efforts.

Successful applications of the LMIA are brief, logical, and appropriately enunciated pieces of business communication, they are not merely piled-up application forms and fewer job postings.

  1. It is the employer’s duty or their representative to make explanation very clear and precise to the presiding officer:
  2. What are the means adopted to hire and train Canadians.
  3. Why are they having a tough time recruiting Canadians?
  4. What is the plan formulated to train Canadians in order to avoid relying on overseas temporary workers.
    The manner in which the Canadian labor market would be at an advantage from hiring temporary overseas Workers through filling up shortages of labor, creating jobs, and transferring skills.
  5. The Employer’s intention to obey all the applicable Labour laws of Canada as they are connected to hiring overseas Workers.

Communication is the Key.

Acquiring a positive LMIA takes an anxious detailed attention and an extended length of work. By ensuring the guidelines are carefully followed and making the Program officer a clear position, the chance of getting a result that is favorable would be massively increased.

Important FAQs

Employers may be unwilling to go through the process of LMIA for applicants who has a marginal situation. The following are the situations:

  1. Holders of Holiday Work Permit who would want to stay on staff with the present employer towards the end of the work permit.
  2. Post-graduation work permit holders looking to remain on staff with the present employer at the end of the work permit.
  3. Open work permit holders looking to stay on staff with the present employer towards the end of the work permit.

Many job finders- particularly the ones who are working in Canada hoping to transit to another work permit from the existing one with an LMIA have been anxious by the lack of knowledge possessed by their Canadian Employers with regards to LMIA process of Canada or the reluctance displayed by the employers to engage with the process of LMIA to the letter. For Instance, employers may be unwilling to post a job ad that may include some details with regards to compensation or could recognize the wrong NOC code. Even if they identify the right NOC code, they may fail to catalogue certain duties in the ad of the job. Having such errors would lead to a failure to acquire the LMIA or needing to begin all over again, to the anger, employer’s cost, and the worker.

As the worker, it could be in your interests to be curious in knowing THE LMIA process and how is it undertaken at your current location of employment. Small and Medium sized businesses that may undergo through the process of LMIA on your behalf for the very first time or for first time in a long time, may accidentally make expensive errors due to not being familiarised with the LMIA process intricacies. In that kind of situation, it could be in the best interests of everyone for a controlled Canadian Immigration consultant who would oversee the preparation of the LMIA, its application and it liaise with the government on behalf of the employer. We have a small list of consultants who are recommended, and each of them has extensive expertise in the security of LMIA for suitable cases and work permits for foreign workers.

The processing times of LMIA can be kind of unpredictable and the process of LMIA can range from a good number of weeks to a couple of months. Workers and employers must take at least a month required to get the position advertised.

Some LMIA cases are tracked fast (See above:’ Processing worth 10 days for Highest Paid, Highest Demand and Occupations for the Shortest Duration)

The Canadian Government does not have a processing standard or target that is publicly stated and the processing times of the LMIA are not published online by any department of the government.

Employers are required to pay a $1000 fee order to submit the LMIA application that falls UNDER TFWP (Temporary Foreign Worker Program)

Overseas Workers who are wanting to acquire an LMIA must initially have a job offer from the Canadian Employer. See our section of Employment for resources and information with regards to finding a job in Canada.

It’s quite a possibility that you can divert the process of LMIA by having a work permit under one of the streams of the International Mobility Program. For employers and workers alike, it is preferred to get a job that comes under the International Mobility Program, as these work permits do not need a worker to acquire an LMIA.

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