Foreign nationals, with some exceptions, require a Labour Market Impact Assessment (LMIA) to work in Canada. The exception applies to some LMIA-exempt foreign nationals. Read on to find details on Canada’s Labour Market Impact Assessments (LMIA) and get answers to the five most frequently asked questions about LMIAs.

Canada’s Labour Market Impact Assessments (LMIA): What is it?

Labour Market Impact Assessments, or LMIA, is an essential work-related document issued by Employment and Social Development Canada. It is required by certain employees in Canada who intend to hire a temporary foreign worker from overseas. An individual must acquire this LMIA before the foreign worker submits an application for their work permit. The document demonstrates that a foreign worker will positively impact the Canadian labor market, or it will be neutral without leaving negative impacts.

Notably, there are certain jobs in Canada that are LMIA-exempt. For these jobs employer does not need this document to support a foreign national’s work permit application.

An approved LMIA proves that the employer in Canada can hire a foreign national for a specific job role. Thus, an approved or positive LMIA can sometimes be referred to as a confirmation letter.

Recently, the IRCC made a significant announcement concerning the reduction of Canada’s temporary resident population over the next three years. Following this, the process for foreign nationals seeking to work in Canada may become more competitive.

If you intend to work in Canada, the following five most frequently asked questions about LMIAs can help you understand the process and enable you to accelerate it.

Query 1: How can I determine if I need an LMIA to work in Canada?

Employers in Canada generally need to obtain an LMIA to hire foreign workers unless they qualify for an LMIA exemption. There are several factors that determine LMIA requirements and exemptions. 

Query 2: Is an LMIA required to work in Canada as an entrepreneur?

In Canada, entrepreneurs do not need to get an LMIA to apply for Canada’s work permit. However, individuals from overseas who want to work in Canada as entrepreneurs must demonstrate that the business they want to begin in Canada satisfies one of the following things:

  • They must demonstrate that their business will generate or sustain social, cultural, or economic advantages
  • They must create or sustain jobs in Canada for Canadian PRs and citizens

Query 3: Why do I need to obtain a second LMIA to extend my work permit?

In Canada, to apply for a work permit, an individual must hold a valid LMIA. 

A work permit can be issued for a longer period than the LMIA. However, a foreign worker’s LMIA must be valid when they apply for a work permit.

Thus, in case when a foreign worker’s LMIA expires, but employer intends to elongate the worker’s work permit, they will need to apply for a new LMIA. This must be done before the employee can apply for a work permit extension or another work permit in Canada.

Notably, the Employment and Social Development Canada (ESDC) starts the assessment process again for this and treats this as a new application, irrespective of the previous LMIA.

As per the new application process, EDSC may ensure that no Canadian citizens or PRs are suitable for the temporary foreign worker position being applied for.

Query 4: Can an LMIA help me gain more CRS points as an Express Entry applicant?

The candidates of one of the Express Entry programs, Canadian Experience Class (CEC), do not need an LMIA to qualify for the program. However, an LMIA can be valuable for all Expres Entry candidates, in general, to receive an LMIA from their employer.

An Express Entry applicant with a valid job offer and LMIA can get extra CRS points. Thus, candidates who receive an LMIA can increase their chances of obtaining an ITA for Canadian PR.

Query 5: What are the recent IRCC updates concerning LMIAs?

On March 21, Canada’s immigration minister Marc Miller and Employment Minister Randy Boissonnault made a notable announcement in a joint press conference. Together, they declared notable changes to Canada’s Temporary Foreign Worker Program (TFWP).

Notably, two ministers declared that each LMIA’s validity period would return to the pre-pandemic standard of six months. As per the report, the new changes will be effective from May 1, 2024.

Previously, during the COVID-19 pandemic, Canada extended the LMIA validity to 12 months. This effort was put in place to help address labor market conditions throughout the nation.

Are you interested in immigrating to Canada but have concerns about the process and pathways? Feel free to connect with our experienced immigration experts for help at NavaImmigration. You can also send us an email at [email protected]