Labour Market Impact Assessment (LMIA) Overview

In Canada, employers are generally required to obtain government approval before they can hire foreign workers. This approval is known as a Labour Market Impact Assessment (LMIA), which was previously referred to as a Labour Market Opinion (LMO). The purpose of an LMIA is to ensure that hiring a foreign worker will not negatively impact the Canadian labor market. Essentially, it confirms that there is a need for a foreign worker to fill the job and that no Canadian worker is available to do the job.

Steps to Obtain an LMIA

1. Employer’s Role:
   • Job Advertising: The employer must advertise the job in Canada and make genuine efforts to hire a Canadian citizen or permanent resident. This involves posting the job on various platforms and demonstrating that the applicants who applied were not qualified for the position.
   • Application Submission: The employer then submits an LMIA application to Employment and Social Development Canada (ESDC). This application includes details about the job, the recruitment efforts, and the reasons why a foreign worker is needed.
2. Awaiting Approval:
   • Review Process: ESDC reviews the application to ensure that the employer has made sufficient efforts to hire a Canadian worker and that hiring a foreign worker will not negatively affect the Canadian labor market.
   • Positive LMIA: If the application is approved, the employer receives a positive LMIA, also known as a “confirmation letter.” This document confirms that there is a need to hire a foreign worker for the position.
3. Employee’s Role:
   • Work Permit Application: With the positive LMIA, the potential employee can apply for a work permit. The application must include a job offer letter, a contract, a copy of the LMIA, and the LMIA number.
   • Approval and Entry: Once the work permit is approved, the foreign worker can move to Canada and begin working in the specified position.

Recent Changes to the LMIA Process

• Online Applications: As of April 2023, the Temporary Foreign Worker Program has transitioned to an online application system for LMIAs. This change aims to streamline the process and make it more efficient.
• Job Categories: Since 2021, job positions are categorized into two groups: high-wage and low-wage. High-wage jobs are those where the salary meets or exceeds the median wage in the province where the job will be performed. Low-wage jobs are those where the salary is below the median wage.
• Application Fee: The fee for submitting an LMIA application is now $1000 per worker, which is a significant increase from the previous fee of $275 per worker for LMOs.

How to Apply Online for an LMIA

The LMIA Online Portal is a secure and reliable electronic tool that allows Canadian employers and third-party representatives (acting on behalf of employers) to submit LMIA applications to Service Canada. To use the portal, employers need to create a Job Bank account. Once the account is set up, they can:

• Submit Applications: Employers can submit LMIA applications 24 hours a day, 7 days a week.
• Manage Applications: Employers can start an LMIA application, save it, and return to it later before submitting it to Service Canada.

This online system is designed to make the application process more accessible and efficient, ensuring that employers can easily navigate the requirements and submit their applications without unnecessary delays.

LMIA Processing Time

Canada experienced a large volume of LMIA applications in 2021, which can result in longer processing times and possible delays, especially seen in the Temporary Foreign Worker Program.

Below is a list of recent processing times per LMIA stream to help you estimate how long it will take to review your application:

After An LMIA is Approved, What Is the Next Step?

Once your LMIA application is approved, you will want to send a copy of this letter and Annex A to the foreign worker. Then, the foreign worker can apply for a work permit! Processing times for work permits can vary depending on where the application was submitted.

To apply for a work permit, a worker needs

• a job offer letter
• a contract
• a copy of the LMIA
• the LMIA number

Need Help With Your LMIA Application? We Can Help!

Applying for LMIA in Canada can be tricky and confusing if you are not completely sure what you are doing. Visaplace has been helping clients complete their LMIA applications with ease. Our immigration professionals are standing by to assist with your LMIA and Temporary