An LMIA (Labour Market Impact Assessment) in Canada is a document that an employer may need to obtain before hiring a foreign worker. It is issued by Employment and Social Development Canada (ESDC) and serves to assess the impact that hiring the foreign worker would have on the Canadian labour market.
Key aspects of the LMIA process include:
- Purpose: The LMIA verifies that there is a need for a foreign worker to fill the job and that no Canadian worker or permanent resident is available to do the job. Essentially, it aims to protect the Canadian labour market by ensuring that Canadians have first access to available jobs.
- Application by Employers: Employers must apply for an LMIA before hiring a foreign worker. The application involves proving that efforts have been made to hire Canadians first and that the employment of a foreign worker will not negatively impact Canadian workers.
- Positive or Negative Outcome: A positive LMIA indicates that there is a need for a foreign worker and will allow the employer to proceed with hiring a foreign national. A negative LMIA means the employer will not be permitted to hire a foreign worker as it could adversely affect the Canadian labour market.
- Fee and Processing Time: Employers are required to pay a fee for the LMIA application, and the processing time can vary depending on the type of job and the current demand for LMIAs.
- Conditions for High-wage and Low-wage Workers: Different conditions apply depending on whether the foreign worker is expected to earn a high wage or a low wage compared to the median wage in that province or territory. For instance, there are restrictions on the number of low-wage foreign workers a company can employ.
- Streamlined Processes: Certain LMIA processes are streamlined for specific industries or situations, such as those under the Global Talent Stream, which expedites the process for highly skilled workers in occupations experiencing a labor shortage.
An LMIA is crucial for most temporary foreign worker entries to Canada, except for those categories that are exempt due to international agreements (like NAFTA, now replaced by CUSMA), or in cases where significant social, cultural, or economic benefits to Canada are recognized.