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Labour Market Impact Assessment (LMIA)

SAAB Immigration Services Inc. | Immigration Experts for Canada   →  Visa   →  Work in Canada   →  Closed Work Permits   →  Labour Market Impact Assessment (LMIA)

Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to obtain before hiring a foreign worker. It is issued by Employment and Social Development Canada (ESDC) and serves as proof that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do the job. An LMIA is required for most closed work permits, ensuring that the employment of foreign workers will not negatively impact the Canadian labor market.

Median Wage by Province/Territory

To determine whether a position is considered high-wage or low-wage, refer to the median hourly wages for each province and territory. The wage tables are updated regularly to reflect current labor market conditions.

Province/Territory Median Hourly Wage (CAD) Before April 2, 2024 Median Hourly Wage (CAD) As of April 2, 2024
Alberta $28.85 $29.50
British Columbia $27.50 $28.85
Manitoba $23.94 $25.00
New Brunswick $23.00 $24.04
Newfoundland and Labrador $25.00 $26.00
Northwest Territories $38.00 $39.24
Nova Scotia $22.97 $24.00
Nunavut $35.90 $35.00
Ontario $27.00 $28.39
Prince Edward Island $22.50 $24.00
Quebec $26.00 $27.47
Saskatchewan $26.22 $27.00
Yukon $35.00 $36.00

Types of LMIAs

1. High-Wage Positions

  • Jobs offering wages above the provincial or territorial median wage.
  • Employers must submit detailed recruitment efforts to demonstrate that they have tried to hire Canadian workers.
  • Employers may need to provide transition plans outlining how they intend to reduce their reliance on temporary foreign workers over time.

High-wage positions are exempt from caps on the number of temporary foreign workers an employer can hire.

2. Low-Wage Positions

  • Jobs offering wages below the provincial or territorial median wage.
  • In addition to standard documentation, employers must meet additional requirements such as providing transportation, housing, and health insurance.
  • Employers are subject to a cap on the proportion of low-wage temporary foreign workers they can hire (typically between 10-30% of the workforce depending on employment sectors).
  • Positions that lead to permanent residency, such as those under the Provincial Nominee Program (PNP), may be exempt from these caps.

For low-wage positions, the business must typically be operational for at least one year before applying for an LMIA to ensure stability and legitimacy.

3. Seasonal Agricultural Worker Program (SAWP)

  • Allows employers to hire temporary foreign workers for seasonal agricultural work.
  • Must adhere to SAWP-specific regulations and recruitment efforts.

Not subject to the general LMIA cap rules.

4. Agricultural Stream

  • Covers various agricultural roles year-round, not limited to seasonal periods.
  • Includes specific requirements for housing and transportation.
  • Similar to SAWP but with different operational guidelines.

5. Caregiver Positions

  • Employers can hire foreign workers to care for children, seniors, or individuals with medical needs.
  • Must demonstrate the need for a caregiver and the inability to find a Canadian or permanent resident for the role.
  • Employers must provide a detailed employment contract and meet specific wage requirements.

6. Positions Supporting Permanent Residency

  • These positions support foreign workers’ applications for permanent residency.
  • They are crucial in providing a pathway for foreign workers to transition from temporary to permanent residency status.
  • These positions often align with specific immigration programs designed to facilitate permanent residency, such as the Express Entry system.

Provincial Nominee Programs (PNPs):
  • Many provinces and territories have their own immigration programs that nominate individuals for permanent residency based on specific labor market needs.
  • These positions must align with the province’s in-demand occupations and may require a job offer from an employer within the province.
  • Some PNPs do not require an LMIA if the position supports permanent residency.
Eligibility for Express Entry:
  • Positions supporting permanent residency often align with the eligibility criteria for the Express Entry system. This system includes programs such as the Federal Skilled Worker Program, the Federal Skilled Trades Program, and the Canadian Experience Class.
  • To qualify, the job offer must be for a full-time, non-seasonal position that is supported by a Labour Market Impact Assessment (LMIA), unless exempt.
Express Entry and CRS:
  • The job offer can add significant points to the CRS score, increasing the likelihood of receiving an ITA.
  • Positions that require higher skill levels (TEER Level 0/1/2/3) are particularly valuable in boosting the CRS score.
Application Process:
  • Job Offer: The foreign worker must have a valid job offer that supports their application for permanent residency.
  • LMIA: In most cases, an LMIA is required to demonstrate that hiring a foreign worker will not negatively impact the Canadian labor market.
  • Express Entry Profile: The foreign worker creates an Express Entry profile, and their job offer adds points to their Comprehensive Ranking System (CRS) score.
  • Invitation to Apply (ITA): Based on the CRS score, the worker may receive an ITA for permanent residency.

Exemptions from LMIA Caps

Certain applications are exempt from the caps on the proportion of low-wage temporary foreign workers employers can hire:

On-farm Primary Agriculture Positions

Includes laborers, workers, managers, and supervisors in farming, livestock, harvesting, nurseries, and greenhouses for NOC codes 80020, 80021, 82030, 82031, 84120, 85100, 85101, and 85103.

Caregiving Positions for Health Care Institutions

Covers positions in health care institutions (NAICS 62) for NOC positions 31301, 32101, and 33102.

Permanent Residency Support Positions

Applications submitted to support a Temporary Foreign Worker’s (TFW) permanent residence under an Express Entry program.

Highly Mobile or Truly Temporary Positions

Jobs with a duration of 120 calendar days or less, extendable if the peak season, project, or event operates beyond this period.

  • Highly Mobile: Workforce that regularly crosses inter-jurisdictional boundaries (e.g., provincial, territorial, or international) as part of the business’s ongoing operations.
  • Truly Temporary: Specific short-term period or singular event where the position won’t be filled after the worker leaves the country.
Seasonal Low-Wage Positions

Positions in seasonal industries that do not exceed 270 calendar days. Seasonal refers to significant fluctuations in labor demand between peak and off-peak periods, usually occurring around the same dates each year.

  • The exemption can only be used once per year per work location. Multiple applications for the same exemption must be submitted simultaneously.

Employer Responsibilities

Compliance Obligations

Ensure compliance with all TFWP regulations and report any non-compliance voluntarily.

Post-Application Steps

Provide the LMIA confirmation letter to the foreign worker to apply for a work permit.

Wages and Working Conditions

Ensure that the foreign worker receives wages and working conditions that are consistent with the prevailing standards in Canada.
Learn more about LMIA and the application process. Click here
Explore Provincial Nominee Programs and their support letters. Click here

LMIA Exemptions

Certain situations and programs allow employers to hire foreign workers without needing an LMIA. These exemptions include:

1. International Mobility Program (IMP)

The International Mobility Program (IMP) allows employers to hire foreign workers without an LMIA when the work benefits Canada economically, culturally, or socially. This program includes work permits issued under international agreements such as the Canada-United States-Mexico Agreement (CUSMA, formerly NAFTA), intra-company transfers, and programs like the Youth Mobility Program.

  • Facilitates easier hiring processes for positions that provide significant benefit to Canada.
  • Includes various categories such as international agreements, intra-company transfers, and reciprocal employment.
  • Aimed at enhancing economic, social, or cultural exchanges.

2. Global Talent Stream

The Global Talent Stream (GTS) is designed to help Canadian employers attract highly skilled foreign workers in occupations that are in high demand and support innovation. It is part of the Temporary Foreign Worker Program (TFWP) and offers expedited processing for eligible applicants.

  • Targets high-demand occupations, particularly in the tech industry.
  • Offers expedited processing (usually within two weeks).
  • Requires a Labour Market Benefits Plan outlining how the employer will create jobs or transfer knowledge to Canadians.

3. Intra-Company Transfers

Intra-Company Transfers allow multinational companies to transfer key employees to their Canadian branch without the need for an LMIA. This exemption applies to executives, managers, and workers with specialized knowledge.

  • Facilitates the transfer of essential personnel within multinational companies.
  • Applies to executive, managerial, or specialized knowledge roles.
  • Requires that the employee has worked for the company for at least one year in the past three years.

4. Francophone Mobility

Francophone Mobility allows employers to hire French-speaking workers from abroad to work outside Quebec without needing an LMIA. This initiative aims to promote linguistic diversity and support the use of French in communities across Canada.

  • Encourages the hiring of French-speaking foreign workers in non-Quebec regions.
  • Aims to enhance the cultural and linguistic diversity of Canada.
  • Does not require an LMIA, but the job offer must be for a position outside Quebec.

5. Special Public Policy Initiatives

Special Public Policy Initiatives provide LMIA exemptions under temporary public policies that address specific humanitarian and compassionate grounds or other special circumstances. These initiatives are designed to respond to unique situations that arise due to various socio-political or economic factors.

  • Applied under specific public policies tailored to unique socio-political or economic needs.
  • Often temporary and targeted at humanitarian and compassionate grounds.
  • Enables quicker response to crisis situations or special economic needs.

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