Labor Market Impact Assessment

An LMIA serves as a process of verification of the labour market process. In this process, Employment and Social Development Canada ESDC does an evaluation of the job offers of employment and makes sure that hiring foreign workers will not put any negative effect on the labour market of Canada. Employers have to provide all the information such as for which position they are hiring a foreign worker and also they have to provide the number of Canadian candidates who have applied for the job, how many Canadians were interviewed and they have to explain in detail why they do not hire Canadian workers.

In the process of offering employment, ESDC has to check the following conditions:

  • The salary given to the foreign workers is regular and accurate for the position of the given occupation.
  • The working conditions and atmosphere provided to foreign workers are acceptable to the labour laws.
  • There is any labour shortage for that employment in that area as mentioned in requirements. 
  • There is no labour dispute in that company or industry.
  • Canadian employers are doing efforts to provide employment to Canadian citizens.
  • The foreign workers are having special Working skills that can help the Canadian economy. 
  • Providing employment to foreign workers can help in creating newer and better opportunities for Canadians.

The jobs that are offered to the foreign workers in major cities of Canada have obtained high positions and salaries but in low populated areas, it is easy to receive LMIA.

LMIA Based Work Permits

It is a process of 2 steps for foreign workers and employers to complete to gain a work permit for Canada. First of all, you have to apply to ESDC for an Impact Assessment of Labor Market and then apply for the work permit to CIC. The  ESDC goes through many labour market protection factors. The Canadian employers also submitted a complete list of Canadian people who had applied for the employment and how many Canadians were interviewed for the job. They also have to explain why they had not hired the Canadian candidate. After completing all the inspections ESDA offered a work permit to the applicant.

The LMIA procedure is renowned in two categories: high-wage and low-wage employees.  The temporary foreign workers who are having low or medium wages according to that province or territory are called low-wage employees and the workers who are getting high wages are called high-wage employees.

Here is the list of Median value of the Hourly Wages in Canadian Provinces. ($/hr)

  • Newfoundland and Labrador $21.12
  • Manitoba $19.50
  • Saskatchewan $22.00
  • Alberta $25.00
  • British Columbia $22.00
  • Yukon $27.50
  • Prince Edward Island $17.49
  • Nova Scotia $18.85
  • New Brunswick $18.00
  • Quebec $20.00
  • Ontario $21.15

High-Wage Workers

It is a compulsory process for all the employers of Canada who want to hire temporary foreign workers to submit their transition plan to ESDE. They also have to pay them equal or above the median hourly wages according to that province or territory. Submission of their Transition plan is compulsory to make sure that the employer wants to lessen their reliance upon temporary foreign workers and want to provide employment to Canadians.

Low-Wage Workers

If Canadian employers are interested in hiring low-wage workers then they have no need of submitting a transition plan when they are applying for LMIA. They will be bound to a cap under which they can hire only limited numbers of low-wage temporary foreign workers. In this category, more than 10 employees will have an upper limit of 10% on temporary foreign workers.

Time Consumption to Assess Labour Market Impact

ESDE has usually taken 10 business days to obtain the service for LMIA applications.  The10 day processing services will be provided for those applications which are concerned with high demanding jobs such as skilled trades through skilled workers programs and most of the jobs offered to Canadians in that province or territory. This process is also applicable with a short time work period which will be less than 120 days.

ESDC offices have the responsibility to process the LMIA applications and these offices mostly exist in each Canadian province.

Labor Market Impact Assessment

Criteria for Employers Applying for Labor Market Impact Assessment.

All employers who want to hire foreign temporary workers have to pay 1,000 CDN as a fee for processing. They also have to pay an additional $100 CDN as a privilege fee.

It is necessary for Employers to use the English and French languages which could be renowned for job requirements. These both languages are used for LMIAs and also for the advertisements of job vacancies. If the employer wants to use any Other language then they have to prove the necessity of another language.

Employers have to do proper advertisement of all existing job vacancies in the job market of Canada for a minimum of four weeks, only after that, they can apply for Labor Market Impact Assessment. Employers also have to prove that they have used two other procedures if recruitment can continuously advertise it on the website of Canadian Job Bank.  Employers have to target advertising on those groups of Canadians who are Aboriginals and physically disabled.

When employers have to submit their Transition plan to ESDC while applying for LMIA for high-wage jobs. The transition plan must also include how the company and the employers implement their plans in order to reduce their dependency on temporary foreign workers. They have to Prove their efforts to invest in providing skills training and providing positions to Canadians. They have to prove that they are guiding their high-skilled temporary foreign workers to be a permanent resident in Canada. If employers are going to apply for the renewal of their Labor Market Impact Assessment, they have to demonstrate the progress of their transition plan.

Employers must also keep in mind that they cannot lay off or cut off the working hours of workers from Canada if they are going to hire temporary foreign workers. Employers should remember that they should fulfil all the criteria of the LMIA application process. Employer’s LMIA application will not be processed if any of the following is true.

  • The occupation is listed as being under accommodation, food-related services or retail sale by the LIMA authorities. 
  • If it is of the skill type ‘D’ of NOC.
  • If the unemployment rate in the region where the occupation is supposed to be in is more than 6%.

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