Labour Market Impact Assessment: what is it?

The ESDC issues a legal portfolio called an LMIA to measure the effects of international labor force in the country. An LMIA can legally employ foreign workers from specific countries. It shows that the Canadian employer has had made a good faith effort to find and hire employees (natives, citizens, and PR holders) but failed to do so due to several reasons.

• Did you know that an employer, not the employee, must submit LMIA applications?
• There are two major categories of LMIA recipients.
• High-wage earners & low-wage earners
• Dual-intent (one for PR status & another for temporary status) LMIA is a possibility
• You could an LMIA for in-house caregivers, agriculture employees, and others
• Depending on where you live and what you do for a living, your LMIA needs may vary.

It is important to remember that an LMIA is not mandatory for everyone.

LMIA Application: When you may need it?

“Employment & Social Development Canada” will take a number of variables into account when deciding whether to grant you an LMIA –

• Is there anyone from Canada that would be interested in applying for the job?
• Is there a labor dispute going on right now in the impacted industry?
• Is the salary (high or low wage) in line with market rates for the position?
• How can you know if the workplace complies with labor laws?
• Has the Canadian company made enough effort to find Canadians already living in the country?
• Is there a chance that bringing in an international worker would be good for Canada’s economy?
• Will the foreign employees understand and respect Canadian law and socio-cultural values?

Are you applying for High or low-wage jobs?

Are you going to apply for an LMIA request? In that case, we can help you. However, at first, employers need to know if they are hiring for a high-wage or low-wage position before submitting an LMIA. The firm will submit an LMIA high-wage application if the hourly wages they intend to pay are equal to or greater than the provincial median. AN LMIA for low-wage is just the opposite.

The primary distinctions are primarily of a procedural nature

Employers seeking for the low-wage LMIA will be able to hire a limited number of foreign employees – no more than 10% of their workforce, while those hiring for high-wage roles would have no such limitation imposed on them. You need to take into account the rate of unemployment in Canada. In areas where the unemployment rate is over 6%, the ESDC will not entertain the applications for entry-level jobs.

Are you a Canadian employer? Know your perquisites

• We can divide the spectrum into eight distinct categories through which the eligibility criteria for an employer will be decided.
• The company must offer some sort of service to the general population.
• The company must have issues an official offer of employment.
• The wages and benefits are competitive with those in Canada.
• To minimize the disruption, companies must conduct open & transparent recruitment processes.
• Nonetheless, there is a possibility of exclusions in Quebec.
• The company must be legal and have not had any layoffs in the previous year before applying.

Is your LMIA request approved? What is NEXT?

Do you know your next move once a LMIA request is approved? Let us help you!

In essence, an approved LMIA proves that the employer tried each way to get worthy candidates in Canada but failed to do. Therefore, now the company needs to make sure that it hires foreign skilled employees to support the Canadian economy and labor shortage. Hiring of foreign workers will not negatively influence the Canadian economy. The company can start hiring foreign nationals who need to apply for work permits once the LMIA has been approved.

In the event that the company does not have enough qualified applicants, we can assist in sourcing the best possible people from all around the world.