Labour Market Impact Assessment – Do I Need One?

If you wish to hire a foreign worker in the Temporary Foreign Workers Program (TFWP), you may have to make an application to Employment and Social Development Canada (ESDC) for a Labour Market Impact Assessment (LMIA), previously called a Labour Market Opinion (LMO).

The transition between the LMO to the LMIA resulted in a process that is more wide-ranging and demanding. Employers will now have to provide additional information such as, the number of Canadians employers interviewed, the number of Canadians that applied for the job, and explanations as to why those Canadians were not chosen for the job.

It is important to know that not all foreign workers need a LMIA, as exemptions do exist. LMIA-exempt foreign workers are now part of the International Mobility Program. This may include, for example, workers covered under international agreements.

The purpose of the LMIA is to make sure that foreign workers are not being chosen over Canadian citizens or permanent residents that are qualified for the job. In other words, it is to establish that the hiring of a foreign worker will not have a negative impact on the Canadian labour market.

A positive LMIA (confirmation letter) will show that there is a need for a foreign worker to fill the position and that no qualified Canadian or permanent resident is available to do the job. There are various factors that ESDC considers including the availability of Canadians, the offered wages (whether the wage is a low-wage or high-wage), etc…

A positive LMIA (or confirmation letter) is only issued for a restricted period of time. If you would like to keep the foreign worker for a longer period of time, you may have to apply for a new LMIA to ensure that the job is still in demand and that no qualified Canadian citizen or permanent resident may fill that position.

At Akrami & Associates, our experienced legal professionals can assist you with the Labour Market Impact Assessment as well as Work Permits. An accurate application will help prevent delays, call us today to see how we may help.