LMIA – Labour Market Impact Assessment

Key Takeaways

• LMIA is a critical document for Canadian employers hiring foreign workers, ensuring no negative impact on local workers.
• A positive LMIA indicates no local workers are available, while a negative LMIA means otherwise.
• Employers must fulfill specific requirements for a positive LMIA, categorizing workers as high-wage or low-wage, affecting application requirements.
• The LMIA application process involves detailed documentation, including proof of advertising and job fair attendance, and demonstrating efforts to hire or train Canadian workers.
• The goal of LMIA is to safeguard local job opportunities and reduce the need for foreign workers in the future.

What is Labour Market Impact Assessment?

The Labour Market Impact Assessment (LMIA) is a key paper that Canadian bosses need to hire workers from other countries. This paper is important to make sure hiring foreign workers does not hurt Canadian workers.

Before a foreign worker gets a work permit, the boss must get an LMIA. This paper checks if hiring the foreign worker will be good or bad for Canadian workers.

Employment and Social Development Canada (ESDC) looks at the LMIA. They decide if there are no Canadians or permanent residents who can do the job. If they give a positive LMIA, it means no local workers can fill the job. A negative LMIA means there are local workers who can do it.

The Canadian government uses the LMIA to protect local workers. This way, foreign workers do not take jobs away from Canadians.

LMIA Application

The LMIA application process involves a series of requirements that employers must fulfill to obtain a positive Labour Market Impact Assessment.

The application process classifies workers as high-wage or low-wage, which impacts the application requirements and subsequent work permits.

To guarantee a successful application, employers must carefully prepare and submit all necessary documentation, including proof of advertising and job fair attendance.

LMIA Application Requirements

To start the Labour Market Impact Assessment (LMIA) process, employers need to follow some important steps. They must send a detailed application to Employment and Social Development Canada (ESDC). This helps check if hiring foreign workers will affect Canadian jobs.

A key part of the application is a plan to train Canadians for the job in the future. Employers must also show they will give health insurance to all foreign workers. They need to classify workers as high-wage or low-wage based on the local pay rates in Canada.

Employers must prove they tried to find or train Canadian workers before looking to hire foreign workers. By doing all these steps, employers can get a successful LMIA and hire foreign workers.

High-Wage Workers

Employers who want to hire high-wage workers from other countries must follow a special process called the Labour Market Impact Assessment (LMIA). They need to show a plan to hire and train Canadians for these jobs over time. This plan helps prove they will need fewer foreign workers in the future.

To apply, employers must pay a $1,000 CAD fee. They also have to report on how well their plan is going.

To see if a worker is considered high-wage, we look at the average pay in each province or territory.

Here are the main things needed for the LMIA for high-wage workers:

• A plan to hire and train Canadians.
• A $1,000 CAD fee.
• Reports on the plan’s progress.
• Paying workers at least the average wage for the area.

Low-Wage Workers

For low-wage workers, hiring them needs a different process than for high-wage workers. To hire low-wage workers from other countries, bosses need to get something called a Labour Market Impact Assessment (LMIA). This shows they need workers from outside Canada.

To get an LMIA, bosses must show they meet certain rules. They need to prove they have transportation and housing for the workers. The main goal is to make sure these workers get fair pay and good working conditions.

A positive LMIA for low-wage workers lasts for six months. Bosses must follow the rules and give all needed papers to get the LMIA. This shows they care about treating their workers well and paying them fairly.

What Happens After LMIA is Approved

After the LMIA is approved, the next step is very important. The employer must give the foreign worker a copy of the approval letter. This letter helps the worker apply for a work permit. Without this permit, the worker cannot work in Canada.

Here is what the employer must do:

1. Give the foreign worker the LMIA approval letter.
2. Make sure the worker’s pay, job duties, and work conditions match the LMIA.
3. Follow all LMIA rules to avoid any trouble.
4. Help the worker apply for a work permit.

Following these steps is important. Once the worker gets the permit, they can start working in Canada. This ends the LMIA process.

Median Hourly Wages by Province or Territory

In Canada, the amount people earn per hour is different in each province or territory. This is because the cost of living, types of jobs, and economy are different in each place.

Yukon has the highest hourly wage at $36.00. This is because it is far away and has special jobs. Alberta is next with $29.50 per hour. British Columbia’s hourly wage is $28.85.

In Manitoba, people earn $25.00 per hour, which is lower than in many other places. Newfoundland and Labrador have a median wage of $26.00, a bit more than Manitoba.

These wage differences matter for both workers and employers. They affect how much things cost and how people live. Knowing these wages helps people plan for jobs and money better.

Expediting an LMIA

When expediting an LMIA, several key factors come into play to guarantee a seamless and efficient process.

These factors include:

• the occupations being considered,
• the wages associated with those occupations,
• the duration of the job, and
• the potential for Express Entry.

Occupations

Some jobs in Canada can get faster approval for hiring workers from other countries. This is called Expedited Labour Market Impact Assessment (LMIA) processing. It helps foreign workers start working in Canada quickly.

To get this faster approval, workers need to have worked full-time for at least one year in a similar job. Employers can also join a new program started in September 2023 called the Recognized Employer Pilot (REP). This makes it easier and quicker to hire foreign workers.

Here are the main things needed for faster LMIA processing:

1. Work experience: The foreign worker must have at least one year of full-time work experience.
2. Language: The job must require English or French.
3. Fee: Employers must pay $1,000 for each LMIA request.
4. Recognized Employer Pilot: This program starts in September 2023 and makes the process easier and the LMIA valid for a longer time.

Wages

To get an LMIA quickly, employers need to follow some rules about wages. They must pay at least the average hourly wage in their province or territory. This helps make sure foreign workers get fair pay, like Canadians.

Employers also need to show they tried to hire Canadians first. They must post job ads for four weeks all over Canada. They also need to use two other ways to find workers, like the Canada Job Bank.

If employers do all this, they can get their LMIA approved. This lets them hire temporary foreign workers.

Job Duration

Employers who want to hire foreign workers quickly can use a 10-day service. To get this fast service, employers must follow some rules.

First, the foreign worker must have at least one year of full-time work experience.

Second, the job must need skills in either English or French.

Third, employers must pay a fee of $1,000 CAD for each request.

Also, starting in September 2023, employers can use a new program called the Recognized Employer Pilot (REP). This program makes the process easier and the approvals last longer.

Express Entry

The Express Entry system helps employers hire foreign workers faster. This system speeds up the Labour Market Impact Assessment (LMIA) for workers who want to live in Canada permanently. Foreign workers need at least one year of full-time work experience to qualify.

To get faster LMIA processing, employers must follow some rules. They must advertise the job for four weeks across Canada. They also have to pay a fee of $1,000 for each LMIA request.

Program	Benefits	Requirements
Express Entry	Faster LMIA processing	1+ year full-time work experience
Recognized Employer Pilot	Easier LMIA application, longer validity	Follow job ad rules
Expedited Processing	Quicker LMIA processing	Pay $1,000 fee

The Recognized Employer Pilot (REP) starts in September 2023. It makes the LMIA process easier and gives longer validities for employers in the Temporary Foreign Worker Program (TFWP). By using Express Entry, employers can save time and effort when hiring temporary foreign workers.

Advertising Requirements

To meet the Labour Market Impact Assessment (LMIA) rules, employers need to follow some steps to make sure job openings are well known across Canada. This helps Canadian citizens and permanent residents have a fair chance to apply for the job. It also shows that no qualified Canadians can fill the spot.

To follow the LMIA rules, employers must do these things:

• Minimum advertising period: They must advertise job openings for at least four weeks. This helps more people see the job.
• Language requirements: They must advertise in both English and French. This reaches more people in Canada.
• Additional recruitment methods: They must use at least two other ways to tell people about the job, besides the Canada Job Bank.
• Targeted recruitment: They must try to reach groups that are often left out, like Indigenous peoples, youth, and people with disabilities.

Exemptions to LMIA Requirements

In Canada, some jobs do not need a Labour Market Impact Assessment (LMIA). This is part of the International Mobility Program. The Government of Canada has a list of these jobs on their website. Employers can look up the list to see if the job they want to fill is exempt from needing an LMIA.

When an employer finds the right job on the list, they must use a special code. This code shows that the job does not need an LMIA. Employers need to include this code in their job offer. The codes are also on the Government of Canada’s website.

It is important for employers to pick the right code. This makes sure they follow the rules. If employers need help, they can ask the International Mobility Workers Unit. Knowing these rules helps employers hire foreign workers more easily and quickly.

Global Talent Stream

Canada’s Global Talent Stream helps companies hire skilled foreign workers fast. It builds on Quebec’s special process to fill jobs with shortages and boost new ideas. This quick process is part of the Temporary Foreign Worker Program (TFWP).

The Global Talent Stream has many perks:

1. Fast processing: Companies can get approval in 10 business days.
2. Skill shortages: It helps Canadian companies fill important job gaps quickly.
3. Innovation: This stream helps bring in workers with special skills to drive new ideas and growth.
4. Top talent: It attracts the best workers for jobs that are in high demand.

Intra-Company Transfers

Big companies with offices in different countries can use Intra-Company Transfers to move important workers to their offices in Canada. This helps share special skills and knowledge. It makes it easier for these companies to get the right people in the right places.

Workers who move this way don’t need special permission from the government, called a Labour Market Impact Assessment (LMIA), if they meet certain rules. These rules say that the workers must have worked for the company for a certain time.

This process is simpler and faster. It helps companies bring in key people without a lot of extra steps. By using Intra-Company Transfers, big companies can make sure their workers with special skills can help out in different countries.

NAFTA Work Permits

Citizens of Mexico and the United States can use NAFTA Work Permits to work in Canada. They do not need a Labour Market Impact Assessment (LMIA). This rule helps professionals, intra-company transferees, and traders/investors. It is part of the North American Free Trade Agreement.

NAFTA Work Permits have many benefits:

• Faster processing: People can get their work permits quickly.
• Easy application: The LMIA exemption makes it simple to apply.
• More mobility: Workers can move easily between the United States, Mexico, and Canada for work.
• Stay duration: Workers can stay in Canada as long as their work contract lasts.

NAFTA Work Permits make it easy for people to work in Canada. They help workers get jobs fast and support trade and business growth between the three countries.

CETA Work Permits

The Comprehensive Economic and Trade Agreement (CETA) makes it easier for people from the European Union (EU) to work in Canada.

This deal between Canada and EU countries removes the need for a special check called a Labour Market Impact Assessment (LMIA) for some jobs.

Because of CETA, EU citizens can find work in Canada more easily, and Canadian employers can hire skilled workers from the EU without extra paperwork.

CETA work permits are an important part of this deal. They let EU citizens work in Canada without the LMIA.

This makes it simpler for companies to hire top talent from Europe. By letting more EU workers come to Canada, CETA work permits help both Canada and the EU.

LMIA Processing Times

Even though the CETA work permits make it easier to hire EU citizens, the Labour Market Impact Assessment (LMIA) process is still important. You need to plan well and pay attention to details, especially for how long it takes.

LMIA processing times can change a lot. Sometimes it takes a few weeks, other times a few months. Some things can cause delays, like many applications, missing or wrong information, and hard job offers. Also, where the job is located can affect how long it takes.

To avoid delays, follow these tips:

1. Send a complete application: Include all needed documents and information.
2. Plan for different times: Be ready for changes in processing times and plan your hiring schedule.
3. Think about job location: The region of the job can change how long it takes, so include this in your planning.
4. Check your application’s status: Look at the status of your LMIA application often. This way, you can change your hiring plans if needed.

LMIA Fees and Additional Employer Requirements

Employers must follow some rules to hire workers from other countries in Canada. First, they need to pay a fee of $1,000 CAD for each request. This fee is to process the application.

Second, they must try to find Canadian workers before hiring from other countries. This means they should post job ads and look for people in Canada.

Third, employers must provide health insurance for foreign workers. This helps make sure workers can see a doctor if they get sick or hurt.