Canada’s Labour Market Impact Assessment (LMIA) with Envoy Global
Employers across Canada prioritize hiring foreign talent to fill job vacancies and expand talent. If you’re an employer looking to hire foreign talent for your organization, you may need to obtain a Labour Market Impact Assessment (LMIA).
The LMIA is a document that demonstrates that an employer could not find the appropriate talent in Canada to fill a position and, therefore, will look to hire foreign talent to fill the role. A positive LMIA will show that there is a need for a foreign worker to fill the job.
A LMIA ensures that hiring foreign talent doesn’t negatively impact the Canadian labour market. Both employers and foreign talent need to navigate the process carefully, and that’s where Envoy Global’s expertise can make a significant difference.
What is the LMIA in Canada and Do I Need One?
The LMIA is a document that Canadian employers must secure before hiring foreign talent under the Temporary Foreign Worker Program (FTWP). This assessment ensures that hiring non-Canadian workers won’t harm local talent’s job opportunities.
There are exemptions from needing an LMIA. For example, work permit categories under the International Mobility Program (IMP), such as the Intra-Company Transferees category, do not require an LMIA for the application.
The Envoy Global team can help employers determine whether they need an LMIA before hiring foreign talent. Envoy Global’s immigration services offer personalized assessments and consultations to clarify specific circumstances and help teams determine the appropriate immigration strategy.
Labour Market Impact Assessment Job Categories
Certain high-demand sectors, such as agriculture, healthcare and construction, often require LMIAs as they face local labour shortages. Employers in these areas frequently turn to international talent to fill these gaps.
LMIA Work Permits
There are several different LMIA categories under the TFWP. The most common ones are:
High Wage LMIA
- Recruitment for one month within three months before applying to show no qualified Canadian applicants are available.
- Employers must confirm:
- The need for the role.
- Provide position details and commit to paying at or above the median wage.
- Provide a transition plan to reduce reliance on foreign labor is mandatory.
The Global Talent Stream
- Expedited processing for highly skilled foreign nationals.
- Companies must develop a Labor Market Benefits Plan showing commitments to benefit the Canadian labor market.
- Eligible companies can access the Global Talent Stream through two categories:
- A for unique talent for company growth.
- B for skilled workers in listed occupations.
- Specific wage criteria apply for each category.
LMIA Application Process for Employers and Employees
Employment and Social Development Canada (ESDC) oversees the LMIA application process. For work permit categories under the TFWP category work permit applications, employers must first submit an LMIA application to ESDC. From there, ESDC determines if employing a foreign worker will have a positive, negative or neutral impact on the Canadian labor market.
If the LMIA application is approved, ESDC will issue a positive decision letter to the employer. With the positive LMIA, an employer-specific work permit application can be made.
Labour Market Impact Assessment Application Requirements
Job advertising: Employers must advertise the job and demonstrate efforts to hire Canadian citizens or permanent residents before offering the job to a foreign national. For GTS LMIA applications, a job advertisement requirement is not needed. However, employers must develop a Labor Market Benefits Plan (LMBP) with ESDC.
Document Submission: The employer must submit detailed information about the job, the advertisement postings (not for GTS), HR recruitment/screening efforts (not for GTS), and specific business information as part of the LMIA application. Envoy Global’s immigration team carefully guides employers on these documents to ensure accuracy and compliance with the program.
Fee payment: Employers must pay a fee of CAD 1,000 per position. The Envoy Global Platform’s intuitive budget forecasting tool will help employers budget for this step.
LMIA Processing Timeline
LMIA processing time varies depending on the LMIA category, job type and location, ranging from a few weeks to several months. The Envoy Global Platform tracks processing times and can help employers plan their hiring strategies accordingly.
Recent Labour Market Impact Assessment Changes and Restrictions
Canada has recently introduced changes and conditions to its TFWP schemes and the accompanying LMIA requirements. For instance, the government has reduced the processing of LMIA applications to prioritize local talent, including:
- Refusing to process LMIAs in the Low-Wage category, applicable in census metropolitan areas with an unemployment rate of 6% or higher or schemes with lower pay rates.
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Canada’s Immigration Forecast
While employers can begin the immigration process once they have received a positive LMIA, the approved LMIA will only remain valid for six months. Employers with approved LMIAs are also subject to ESDC audits where they are required to show additional documents to ensure compliance with the program and proper treatment of their foreign nationals.
The Envoy Global team can help streamline this process by guiding document requirements and measures if the Canadian government selects an employer for an audit.
Navigating the LMIA process in Canada can be complex, but with the right immigration team and the most advanced immigration management platform, the process can be simplified.
Contact our team today for more information on how Envoy Global can assist you in the LMIA process or for further help on Canadian immigration strategies.
This information was prepared in collaboration with Jim Yang, Senior Immigration Manager of Envoy Global’s Canadian team. Content in this publication is for informational purposes only and not intended as legal advice, nor should it be relied on as such.
For additional information on the issues discussed, consult an attorney at Corporate Immigration Partners, P.C., or another qualified professional of your choosing. On non-U.S. immigration issues, consult your Envoy representative, or another qualified representative of your choosing.
