Labour Market Impact Assessment
The LMIA is an evaluation that ensures that hiring a foreign worker will not have any adverse effects on the Canadian labor market or employment for Canadian citizens or permanent residents. Simply put, it means that an employer is not giving this job offer to someone outside of Canada without first ensuring that a suitable Canadian citizen or PR could not be found for the role.
Labour Market Impact Assessment
One of the essential documents required to hire a temporary foreign worker in Canada is the Labour Market Impact Assessment (LMIA). An LMIA is an assessment conducted by Employment Social Development Canada (ESDC) to ensure that hiring a foreign worker will not negatively impact the Canadian labor market or employment conditions of Canadian citizens or permanent residents.
To apply for an LMIA, the employer must advertise the job position on the Job Bank of Canada for at least 28 days and comply with other strict advertising conditions. The employer must also conduct recruitment efforts, which includes interviewing Canadian citizens and permanent residents to establish why they cannot be hired. After completing these efforts and proving the need for a foreign worker, the employer can apply for an LMIA either online or via email.
The LMIA processing time takes approximately 40-45 days, and the fee for this application ranges from $1,000 Canadian dollars for high-wage or low-wage positions. Once the ESDC officer is convinced of the employer’s financial capability and genuine need to hire a foreign worker, they will issue a positive or neutral LMIA. Depending on the LMIA’s kind, the applicant can use the document to earn 50-200 points for their Express Entry application.
VIEW MORE DETAILS
Here are the main steps involved in the LMIA (Labor Market Impact Assessment) process for employers who wish to hire a temporary foreign worker in Canada:
- Advertise the job on the Job Bank of Canada and comply with other strict advertising conditions for at least 28 days.
- Conduct recruitment efforts by interviewing different candidates who may have applied, who are Canadian citizens or permanent residents, and identify why they cannot hire them.
- Establish that there will be no negative impact on the Canadian labor market by hiring a foreign worker through Canada, and it will not affect the employability or employment conditions for a Canadian citizen or permanent resident.
- Apply for an LMIA through an online application or email with the Employment and Social Development of Canada (ESDC) and pay a fee of $1,000 Canadian dollars.
- Provide a lot of financial documents such as balance sheets, Notice of Assessments, P7 for other employees, etc., to establish that they are in a position to hire a temporary foreign worker.
- Once the application goes into the processing queue, an ESDC officer will set up an interview with the employer and look to establish whether this employer or this company is indeed in a position to hire the foreign worker and there is a genuine need for this person to be hired.
- Once the ESDC officer is satisfied or convinced, they will issue an LMIA (positive or neutral) using which the employer can apply for a work permit.
- Depending on the kind of LMIA, the applicant may also be able to use that document for 50 to 200 points for their Express Entry application.
- The entire process can take roughly 3 months from the start to getting the application decision being rendered.