Labour Market Impact Assessment (LMIA)

Labour Market Impact Assessment (LMIA) is required to hire a foreign worker when employers unable to find a Canadian or Permanent Resident to fill a labour shortage. Canadians and PRs are not interested in the position based on the occupation, wages and/or location or actual shortage of skilled Canadians to fill the position are common reasons of labour shortage.

Canadian employer must have made every efforts to fill the position with a Canadian or permanent resident. If employers cannot fill the position after 28 days (four weeks), they can then submit an LMIA application requesting to fill the position with foreign workers.

Employment and Social Development Canada (ESDC) will determine the legitimacy of the company and employer’s ability to afford the wage being offered. ESDC assesses an offer of employment to ensure that the employment offered to a foreign worker will not have a negative impact on the Canadian labour market. Employer will be required to provide a variety of information about the position for which they want to hire a foreign worker, including the number of Canadians who applied for the position, the number of Canadians who were interviewed, and detailed explanation for why the Canadian workers considered were not hired.

ESDC assessment will result in positive impact or negative impact on the Canadian labour market.

Positive/Neutral Impact – By approving the job position, the new position will create more jobs for Canadians and/or the Canadians will receive training and experience from the foreign worker, and also fill a current labour shortage.

Negative Impact – Approving the job position would increase unemployment for Canadians.

Wage being offered is below the provincial median rate.

Wage being offered is equal to or above the provincial median rate. Employer require to submit a transition plan to ESDC with LMIA application. The transition plan should indicate how the company plans to reduce their reliance on temporary foreign workers. Proof of investment in skills training or hiring Canadian apprentices are examples of how employers can prove they plan to reduce their reliance on temporary foreign workers. Proof that employer is assisting their high-skilled temporary foreign worker in becoming a Canadian Permanent Resident can also qualify as the transition plan. If the employer is chosen for an inspection or if reapply for LMIA, employer will be required to report on the progress of their transition plan.

To hire a caregiver by a Canadian or a permanent resident.

To support the applicant in becoming a permanent resident.

To support the applicant in becoming a permanent resident and to support a work permit while the foreign worker waits to become a permanent resident.

Employers are required to attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers if they employ foreign workers.