Labour Market Impact Assessment (LMIA)

A Labour Market Impact Assessment is a process through which Employment and Social Development Canada (ESDC) verifies an employer’s need to hire foreign workers because no Canadian Citizens or Permanent Residents can be found to do the job.

Although there are some exemptions available to hire a foreign worker without an LMIA job offer, but most employers do need it to help the workers attain a valid work permit.

The Employment and Social Development Canada is the government depart responsible for delivering social programs and services including the LMIA Canada program. ESDC decides if the worker will be issued an offer of employment by considering the following elements:

• Salary or the wage offered as per the location of the offered job
• Any previous labour dispute going on against the company
• If the working conditions of these jobs secure and consistent with the labour laws
• Efforts taken by the employer to hire Canadian Citizens and Permanent Residents before offering it to the foreign worker
• Existence of any labour shortage in the area where the job is located
• The capability of the foreign worker to be able to do the job efficiently (judged by his work experience and education)
• If this employment will create jobs for Canadian Citizens and Permanent Residents

The temporary foreign worker program allows foreign worker to hire foreign workers.

Once a positive LMIA is issued by the ESDC after the verification of the job offer, the Citizenship and Immigration Canada issues a valid LMIA Work Permit/Employer specific work permit to the foreign worker following the application.

Although the standard processing time for LMIA applications is approximately 3 months, the ESDC has now pledged a 10-day service standard for issuing LMIA’s to these three employment categories:

• High Demand and Skilled Trades
• Jobs with top 10% wages
• Short Duration jobs (120 days and below)

• Employers must be willing to pay an LMIA processing fee of 1000$ and a ‘Privilege Fee’ of 100$ to pursue this process.
• Employers must show that appropriate advertisement efforts were made via the Canadian Job Bank and minimum two other hiring mediums. ESDC would also require evidence that efforts were taken by the employer to hire Canadian Citizens and Permanent Residents before offering it to the foreign worker
• Confirmation is required by employers to ensure that they are prohibited to lay-off or reduce hours of the Canadian Citizens and Permanent Residents because of employing the foreign worker
• The only languages listed in the job offer should be English and French. Any other languages listed as job requirements is considered unconstructive by ESDC unless its requirement is proven
• The business’s financial documents are required to prove that the business will be able to support the salary of the foreign worker for a certain period