Canada has LMIA processes in its labour market management, comprising high-wage and low-wage roles. These are the kinds that require more survey and pay higher fees to avoid displacement through foreign hire. Low-wage roles have an easier application. In such a dynamic economy, continuous evaluation of these LMIA processes is necessary because employers need balance against protection of the domestic workforce. In simple terms, LMIA in Canada can be said to be a piece of document that an employer in Canada must obtain before engaging a foreign worker. And a positive LMIA will indicate that the job in Canada is essential and requires a foreign worker for its occupation while no Canadian worker or permanent resident is available for the job.
Employment and Social Development Canada (ESDC) supervises the Labour Market Impact Assessment, which consists of a thorough assessment of LMIA requests to determine that hiring foreign workers will not adversely affect the Canadian labour market. Therefore, ESDC ensures that hiring foreign workers is performed in fair employment, in consideration of dealing with labour shortages in certain sectors.In this article you will get information about High Wage vs. Low Wage LMIA in Canada. Addition details on LMIA is;
Employment and Social Development Canada is the federal department responsible for the growth of policies and programs that improve the living standard and quality of life for Canadians. In this context, ESDC plays a vital part in the process of LMIA.
Canadian employers require a payroll account number having a business number issued by the Canada Revenue Agency (CRA) . You will first set up your own User Account on Job Bank. Before you apply for an LMIA through the portal.
| Province/Territory | Median Hourly Wages Before April 2, 2024 | Median Hourly Wages 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 & 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 |
As the employer, are required to meet the demands of the program. The conditions may differ depending on the position being requested. To apply for a LMIA one needs to submit an application form with all supporting documents. The application would be subjected to the verification process of the validity of the business and the job offers and the impact that hiring of TFW would have on the Canadian labour market.
As of April 4, 2022, employers applying for an LIMA for a high-wage position may request that employment duration be up to 3 years. The employment duration must be commensurate with the reasonable needs of the employer’s employment. In exceptional circumstances, the length may be issued for longer in case the employer produces a sufficient justification.
As an employer, you need to comply with all the requirements of the TFWP for the position you are requesting. The employment you want to offer to a temporary foreign worker should be for a full-time position, which means that it has to be for a minimum of 30 hours of work per week.
High-wage jobs payable to the LMIA in Canada have a rather subtle manner of meeting the demand by the employer without affecting the local labour market. The fee varies depending on an application and geographic location, and a fee is also payable by employers who hire foreign workers for high-wage jobs. Initial fees are relatively high, but the hiring process is very strict to determine that incoming foreign workers will not supplant Canadian citizen and permanent resident workers.
The provision that demands from the employer a recruitment plan and proof that all possible means to recruit Canadians have been exhausted points towards an effective effort in favour of the local workforce. After all, the fee structure might increase employer’s costs in general, but it is helpful in creating a balance between the fair and competitive labour market through a balance of economic stability and growth.
Canada reflects an even larger narrative of economic struggle from workers in smaller cities and rural areas. The job market there comprises a variety of low-paying agricultural and retail jobs, among other service industries. Many of these Residents are placed in low-paying jobs, which can rarely support the hike in living costs. In fact, this is sharply exhibited among seasonal agricultural workers, who are crucial in the production of food but earn wages that barely get by to live.
The stability of low wages in LIMA may be due to inadequate access to high-skilled job opportunities and the dominance of industries that have normally offered lower remuneration. Highly educated workers abound in the area in jobs where their qualifications or potential is not reflected in their jobs. This forms part of the cause that leads to the cycle of underemployment of people in jobs where they are not utilising what they learned enough to strangle economic growth in the region.
In addition to that, with fewer affordable homes for people and a rising living cost, it becomes a stressful situation for families working day and night to achieve stability. Dependence by the community on part-time and temporary work adds to the problem as employees in such jobs usually do not have health care or pension plans, and thus they may be at risk to economic shocks.
These local interest groups and community-based organisations launch campaigns for better wages and working conditions in LIMA, which focuses on fair labour practices and economic development. In many of the programs, there is an intention to be more conscious of rights for workers, and to empower local businessmen and entrepreneurs to make steps toward fair wage practices. Likewise, stimulation of industry that will pay better wages through local government programs may be what the economy needs to work up and develop more stable jobs.
As LIMA looks at the development of its labour market, low-wage workers will be one challenge to be addressed to ensure it has a blooming community. This should be done by investing in education, local business promotion, and advocating for fair labour standards, which will improve their quality of life and make life better in the city.
The overall High Wage vs. Low Wage LMIA in Canada points out the complication that the labour market portrays. In many cases, high-wage positions require stricter requirements and higher fees due to thorough analysis to protect local workers. Low-wage roles require less complex fees, but efforts are made from the employer’s end to hire Canadians first. Both categories specific that protectionist policies were the vehicles through which Canada created an equal environment to weigh business needs against domestic employment protection, thus creating a protected labour environment that would forward economic growth without leaving labour at risk.