Canada Labour Market Impact Assessment | Macropus Global Immigration

Labour Market Impact Assessment

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a temporary foreign worker.

A positive LMIA proves a need for a temporary foreign worker to fill the job. It also shows that no Canadian citizen or permanent resident is available to perform the job required.

Employers will be required to provide a variety of information about the position for which they want to hire a temporary foreign worker.  Employers should be able to answer the following questions accurately:

• How many Canadian citizens or permanent residents have applied for the position?
• How many Canadian citizens or permanent residents were interviewed?
• What are the reasons why Canadian citizens or permanent residents who were interviewed were not hired?
• Is the salary offered to the temporary foreign worker consistent with the average for the occupation in the area/region the position is located?
• Are the working conditions consistent with provincial or territory labor laws and/or collective bargaining agreements?
• Is there a labor shortage for that specific occupation in the area/region?
• Is there an ongoing labor dispute in the company and/or industry?
• Has the Canadian employer undertaken reasonable recruitment efforts in filling the position?
• Will the temporary foreign worker be able to transfer unique skills or expertise to Canadian citizens or permanent residents?
• Will hiring the temporary foreign worker help to create or retain jobs for Canadian citizens or permanent residents?
• Will the temporary foreign worker work on a permanent, full-time basis at a pre-determined wage?

Three Ways Workers can Enter Canada

The immigration application process begins once a Canadian employer has extended an offer of employment to a foreign national.  The following are three different pathways by which the worker can enter the country:

• Working in Canada Without a Permit

Canadian immigration regulations permit certain foreign nationals, such as business visitors, to work in Canada without a Canadian work permit.

• Working in Canada While Exempt From Labor Certifications

Canada’s Immigration Regulations also permit certain foreign nationals to work on a work permit without the need for labour certification. This process involves the employer applying to Employment and Social Development Canada (ESDC) for an LMIA as a pre-condition to obtaining a work permit. This exemption from the LMIA process involves, as one example, those workers identified specifically under the North American Free Trade Agreement (NAFTA).

• Applying for Labor Market Impact Assessment

If no exemptions apply, the first step that Canadian employers must take when applying for an LMIA is to conduct at least three major recruitment activities for a 30-day period such as Job Bank, provincial/territorial recruitment websites, company websites, etc.  Ensure that these job advertisements have occurred in three months prior to submitting the LMIA application.  ESDC allows exemptions for this time frame in some cases.

LMIA-based Work Permits:

Typically, foreign workers and employers must go through a two-step process in order to receive a Canadian work permit.

• The employer must submit an application to ESDC for a Labor Market Impact Assessment. The LMIA is issued by ESDC who, after considering numerous protective labour market factors, authorizes the Canadian employer to hire a foreign worker.
• The prospective worker then submits his/her application for a work permit supported by the positive LMIA.

How long does it take to obtain a Labour Market Impact Assessment?

ESDC has committed to a 10 business day service standard LMIA applications processing for high demand jobs certain, such as skilled trades, jobs offering wages in the top 10% of wages earned by Canadians in that province or territory, and for jobs with a short duration work period (less than 120 days).

Requirements for Employers Applying for an LMIA

• All employers wishing to hire a temporary foreign worker to Canada must pay a processing fee of CAD$1,000for every labour market opinion. There are some exemptions to fee payment such as LMIA application for caregivers and employer’s application to support an applicant’s application for permanent residence status in Canada.A “privilege fee” of CAD $100 may also be required.
• English and French must be the only languages that can be distinguished as job requirements both for LMIAs and for job vacancy advertisements unless the employer can prove that another language is otherwise necessary.
• When employers are applying for LMIA for high-wage positions, they are also required to submit a transition plan to ESDC with their LMIA application.

The transition plan should demonstrate:

• how the company plans to reduce its reliance on temporary foreign workers and contribute towards skills development in Canada, such as hiring Apprentices
• that the employer is assisting their high-skilled temporary foreign worker in becoming a permanent resident
• employers are committed to implementing their transition plan thus are required to report on the progress of their transition plan, if necessary
• that employers are aware that they are prohibited from laying off or cutting the hours of Canadian workers if they employ temporary foreign workers

Employers should be aware of a number of criteria that affect whether or not ESDC will process an LMIA application.  Currently, ESDC does not process the LMIA application for the following criteria:

• Occupation listed on the LMIAfalling under the Accommodations, Food Service or Retail Sales. Under the North American Industry Classification System (NAIC), these occupations are classified as NAIC type 72, 44, or 45.
• Occupation listed falls under the category of Skill Level D in the National Occupation Classification (NOC).
• The economic region where the job is to take place has an annual unemployment rate of over 6%.

Check out the links below for details:

• Recruitment Advertising
• Median Hourly Wages by Province/Territory

Recruitment Advertising

Employers wishing to hire Temporary Foreign Workers (TFW) are first required to conduct recruitment effort to hire Canadian citizens or permanent residents before offering a job to a foreign national.

Minimum recruitment requirements

ESDC requires employers to do due diligence in recruiting and hiring foreign workers and ensure that priority is being given to applicants who are Canadian citizens or permanent residents.  Some of the basic requirements are, as follows:

• The employer has to demonstrate that at least three different recruitment activities were conducted and has utilized the National Job Bank in advertising the position/job to be filled.
• The employer must have utilized two additional methods of recruitment specific to target groups with appropriate education, experience and/or the skills required.

Job Match service

Employers are encouraged to use the Job Match service for recruitment purposes when advertising a position on Job Bank.The Job Match service allows you to see anonymous profiles of registered job seekers which correspond to the skills and requirements outlined in your job posting. Each match is rated using a star system of one to five stars. The more stars received by the match, the greater the compatibility between your advertised position and the anonymous job seeker.

When seeking to fill a low-wage position, you are required to invite all job seekers matched within the first 30 days of your job advertisement to apply for the position if they are rated two stars or more.

Methods of recruitment

ESDC provides a list of acceptable methods of recruitment for a job advertisement which includes the following:

• general employment websites
• online classified websites
• specialized websites which are dedicated to specific occupational profiles (for example, accounting, marketing, biotechnology, education, engineering)
• local, regional and national newspapers or newsletters
• local stores, places of worship, and community resource centers
• local, regional and provincial/territorial employment centers
• magazines and journals (for example, national journals or magazines, professional associations magazines, specialized journals)
• participation at job fairs
• partnering with training institutions or offering internships/bursaries
• professional recruitment agencies
• consultations with unions for available labour
• advertising through professional associations
• recruitment within the company (for example, considering internal candidates for the position)

If the two additional methods of recruitment are online, they must each have unique value and reach different audiences. In cases where you advertise on multiple websites of the same type, the combined advertisements should be considered only as one additional method of recruitment.

Recruitment documentation retention

You must keep records of your recruitment and advertising efforts for a minimum of six years. You will also be asked to provide the results from the recruitment efforts you undertook to fill the position.

Job advertisement duration

In posting your job advertisement, you must ensure that the advertisement:

• has occurred in the three months prior to submitting the LMIA application
• is for a minimum of four consecutive weeks within the three months prior to submitting an LMIA application

At least one of the three recruitment activities to seek qualified Canadians and permanent residents must be ongoing until the date a positive or negative LMIA has been issued.

Job advertisement information

There is specific information required for the job advertisement, such as:

• company operating name
• business address
• title of the position
• job duties (for each position, if advertising is for more than one vacancy)
• terms of employment (for example, project-based, permanent position)
• language at work
• wage (must include any incremental raises, performance pay or bonuses)
• benefits package offered (if applicable)
• location(s) of work (local area, city or town)
• contact information: telephone number, cell phone number, email address, fax number, or mailing address
• skills requirements (includes education and work experience)

Proof of advertisement

You must demonstrate that you have made efforts to recruit qualified Canadians and permanent residents by providing the following documents as proof of advertisement with your application:

• a copy of the advertisement and information to support where, when and for how long the position was advertised
• proof that the print media and websites used to advertise target an audience that has the appropriate education, professional experience or skill level required for the occupation
• proof of other recruitment activities (for example, payment receipt from a job fair)

Median Hourly Wages by Province/Territory