Five things you need to know about Labour Market Impact Assessments (LMIA)

Certain foreign workers in Canada must obtain a Labour Market Impact Assessment (LMIA) to secure employment, while others are exempt from this requirement.

An LMIA is a crucial document for Canadian employers seeking to hire temporary foreign workers. It validates that the hiring of a foreign worker will not negatively impact the Canadian labour market and must be secured before the foreign national applies for their work permit.

It's important to note that LMIA-exempt positions do not necessitate this document for an employer to endorse a foreign national's work permit application.

With Immigration, Refugees and Citizenship Canada (IRCC) recently announcing plans to reduce Canada's temporary resident population over the next three years, many foreign nationals aiming to work in Canada may be looking to expedite their journey.

In light of this, the following article aims to address five common queries regarding LMIAs to assist foreign workers navigating the process.

What exactly is an LMIA?

In addition to the details provided earlier, LMIAs serve as official documents that, upon approval, signify an employer's authorization to hire a foreign worker.

It's worth noting that a positive LMIA is occasionally referred to as a confirmation letter.

How can I determine if I need an LMIA?

Employers generally need an LMIA to recruit foreign workers unless qualifying for an exemption. The necessity for an LMIA and any applicable exemptions hinge on various factors. For further details on LMIA requirements and exemptions, you can explore them here .

Why do I need a fresh LMIA when extending my work permit?

When seeking to extend a work permit in Canada, foreign nationals must ensure their LMIA remains valid. Put simply, while a work permit can have a longer duration than the LMIA itself, the foreign worker's LMIA must be current when they apply for the permit.

If a foreign worker's initial LMIA expires but their employer wishes to extend their stay and work permit in Canada, a new LMIA becomes necessary before the worker can seek another work permit or extend their existing one.

Moreover, it's crucial to recognize that when applying for a new LMIA, Employment and Social Development Canada (ESDC) will initiate a fresh assessment process, treating it as a new application. During this process, ESDC will reassess whether there are available Canadian citizens or permanent residents who could fill the temporary foreign worker's position, if needed.

Is an LMIA necessary for entrepreneurs working in Canada?

Entrepreneurs do not need an LMIA to apply for a work permit in Canada. However, foreign nationals entering Canada as entrepreneurs must demonstrate that their business venture will either:

• Generate or uphold significant social, cultural, or economic advantages
• Sustain or generate employment opportunities for Canadian citizens or permanent residents

You can explore this dedicated webpage for further details on work permits tailored for entrepreneurs.

How does an LMIA enhance my CRS points as an Express Entry applicant?

While Canadian Experience Class (CEC) applicants are not obligated to possess an LMIA for eligibility in this economic immigration program, securing an LMIA from their employer could prove advantageous for both CEC and all Express Entry candidates.

A verified job offer backed by an LMIA allows candidates to earn supplementary Comprehensive Ranking System (CRS) points within the Express Entry system.

Hence, candidates who secure an LMIA stand a better chance of receiving an Invitation to Apply (ITA) for Canadian Permanent Residency from IRCC.