Labour Market Impact Assessment
In most cases, a Canadian employer wishing to hire a foreign worker must first receive government approval before the hiring can take place.
This comes in the form of a Labour Market Impact Assessment (LMIA), formerly known as a Labour Market Opinion (LMO).
In order to receive a positive LMIA, the Canadian government employee reviewing an application must determine that the hiring of a foreign worker will have a positive or neutral effect on the Canadian labour market. Among other factors, it must be clear that no qualified Canadians were passed up in favour of the foreign worker, and that the foreign worker will be given a salary and benefits that meet federal and provincial standards.
Generally speaking, all Canadian employers must provide evidence that they have attempted to find qualified Canadian citizens or permanent residents to fill job positions before turning to foreign workers. In addition, employers may be inspected for compliance to government regulations after their employee has begun working in Canada.
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- High-Wage Workers
- Median Hourly Wages by Province/Territory
- Low-Wage Workers
- Expediting a LMIA
- Advertising Requirements
Employers seeking to hire high-wage workers must submit transition plans along with their Labour Market Impact Assessment (LMIA) application to ensure that they are taking steps to reduce their reliance on temporary foreign workers over time. High-wage workers are those earning above the median hourly wage for a given occupation in specified region.
The transition plans are designed to ensure that employers seeking foreign workers are fulfilling the purpose of the program. This entails that they are using the program as a last and limited resort to address immediate labour needs on a temporary basis when qualified Canadians are not available, ensuring that Canadians are given the first chance at available jobs.
Certain occupations in Quebec are "facilitated", meaning that local recruitment efforts do not need to be performed by employers as part of their applications to hire temporary foreign workers for any of the facilitated occupations.
Median Hourly Wages by Province/Territory
|Province/Territory||Wage ($/hr) prior to April 29, 2016||Wage ($/hr) as of April 29, 2016|
|Newfoundland and Labrador||$21.12||$20.91|
|Prince Edward Island||$17.49||$18.00|
The above figures are correct as of April, 2016.
Source: Statistics Canada, Labour Force Survey
Employers seeking to hire low-wage workers do not need to submit transition plans with their Labour Market Impact Assessment (LMIA). They must, however, follow a different set of guidelines.
To restrict access to the Temporary Foreign Worker Program (TFWP), while ensuring that Canadians are always considered first for available jobs, the Government of Canada has introduced a cap to limit the number of low-wage temporary foreign workers that a business can employ. Furthermore, certain low-wage occupations may be refused for LMIA processing. Employers with 10 or more employees applying for a new LMIA are subject to a cap of 10 percent on the proportion of their workforce that can consist of low-wage temporary foreign workers. This cap will be phased in over 2015 and 2016 in order to provide employers who are above the 10 percent cap time to transition and adjust accordingly.
Employers offering a wage that is below the provincial/territorial median hourly wage must:
- pay for round-trip transportation for the temporary foreign worker;
- ensure affordable housing is available;
- pay for private health insurance until workers are eligible for provincial health coverage;
- register the temporary foreign worker with the provincial/territorial workplace safety board; and
- provide an employer-employee contract.
As of April 30, 2015, the Temporary Foreign Worker Program uses the latest Labour Force Survey results for the unemployment rates in regions across Canada. These rates determine which regions are eligible for employers to submit Labour Market Impact Assessments (LMIAs) for low-wage/lower skilled occupations in the Accommodation and Food Services sector and the Retail Trade sector. LMIA applications for these sectors will not be processed in economic regions where the unemployment rate is 6 per cent or higher.
Given its unique labour market conditions, and as requested by the Government of the Northwest Territories, applications in these sectors for positions located in Yellowknife will be accepted for processing.
|Province/Territory||Economic Region||Unemployment Rate (%)||Above/At Or Below 6%|
|Newfoundland & Labrador||Avalon Peninsula||8.9||Above|
|South Coast-Burin Peninsula and Notre Dame-Central Bonavista Bay||18.0||Above|
|West Coast - Northern Peninsula - Labrador||17.6||Above|
|Prince Edward Island||Prince Edward Island||10.4||Above|
|Nova Scotia||Cape Breton||15.0||Above|
|New Brunswick||Campbellton - Miramichi||15.2||Above|
|Moncton - Richibucto||8.5||Above|
|Saint John - St. Stephen||8.6||Above|
|Fredericton - Oromocto||8.5||Above|
|Edmundston - Woodstock||9.7||Above|
|Quebec||Gaspésie - Îles-de-la-Madeleine||14.7||Above|
|Centre du Québec||6.7||Above|
|Saguenay - Lac-Saint-Jean||8.3||Above|
|Kingston - Pembroke||7.2||Above|
|Muskoka - Kawarthas||7.8||Above|
|Kitchener - Waterloo - Barrie||5.4||Below|
|Hamilton - Niagara Peninsula||6.0||Above/At|
|Windsor - Sarnia||8.5||Above|
|Stratford - Bruce Peninsula||5.7||Below|
|Parklands and Northern||6.0||Above/At|
|Saskatchewan||Regina - Moose Mountain||4.2||Below|
|Swift Current - Moose Jaw||3.8||Below|
|Saskatoon – Biggar||5.4||Below|
|Yorkton – Melville||4.3||Below|
|Prince Albert and Northern||6.7||Above|
|Alberta||Lethbridge - Medicine Hat||5.0||Below|
|Camrose - Drumheller||4.5||Below|
|Banff-Jasper-Rocky Mountain House and Athabasca-Grande Prairie-Peace River||5.9||Below|
|Wood Buffalo - Cold Lake||7.9||Above|
|British Columbia||Vancouver Island and Coast||6.3||Above|
|Lower Mainland - Southwest||6.0||Above/At|
|Thompson - Okanagan||6.4||Above|
|North Coast and Nechako||8.0||Above|
|Northwest Territories||Northwest Territories||8.3||Above|
The above rates are effective as of April 1, 2016.
Source: Statistics Canada, Labour Force Survey
Expediting a LMIA
LMIAs will be provided within a 10-business-day service standard for workers in the following occupational categories:
- Highest-demand occupations
The 10-day service standard for this category is limited to skilled trades positions where the wage offered is at or above the provincial/territorial median wage. These positions are essential to the development of major infrastructure and natural resource extraction projects, and are therefore considered vital to Canadian economic growth.
|7202||Contractors and supervisors, electrical trades and telecommunications occupations|
|7204||Contractors and supervisors, carpentry trades|
|7205||Contractors and supervisors, other construction trades, installers, repairers and servicers|
|7301||Contractors and supervisors, mechanic trades|
|7302||Contractors and supervisors, heavy equipment operator crews|
|8211||Supervisors, logging and forestry|
|8221||Supervisors, mining and quarrying|
|8222||Contractors and supervisors, oil and gas drilling services|
|8241||Logging machinery operators|
|8252||Agricultural service contractors, farm supervisors and specialized livestock workers|
|9211||Supervisors, mineral and metal processing|
|9212||Supervisors, petroleum, gas and chemical processing and utilities|
|9214||Supervisors, plastic and rubber products manufacturing|
|9231||Central control and process operators, mineral and metal processing|
|9241||Power engineers and power systems operators|
|9243||Water and waste treatment plant operators|
|7231||Machinists and machining and tooling inspectors|
|7233||Sheet metal workers|
|7235||Structural metal and plate work fabricators and fitters|
|7237||Welders and related machine operators|
|7241||Electricians (except industrial and power system)|
|7243||Power system electricians|
|7244||Electrical power line and cable workers|
|7245||Telecommunications line and cable workers|
|7246||Telecommunications installation and repair workers|
|7252||Steamfitters, pipefitters and sprinkler system installers|
|7311||Construction millwrights and industrial mechanics|
|7312||Heavy-duty equipment mechanics|
|7313||Refrigeration and air conditioning mechanics|
|7315||Aircraft mechanics and aircraft inspectors|
|7318||Elevator constructors and mechanics|
|7372||Drillers and blasters - surface, mining, quarrying and construction|
|7373||Water well drillers|
|8231||Underground production and development miners|
|8232||Oil and gas well drillers, servicers, testers and related workers|
|9232||Petroleum, gas and chemical process operators|
- Highest-paid occupations
The 10-day service standard for this category is limited to employers hiring temporary foreign workers in the highest-paid occupations that offer wages in the top 10 percent of wages earned by Canadians in a given province or territory where the job is located. This wage level indicated that a temporary foreign worker is the highest-skilled in their occupation, and that those skills are difficult to find in the Canadian labour market.
|Province/Territory||Wages effective April 30, 2015 ($/hour)|
|Newfoundland and Labrador||$42.53|
|Prince Edward Island||$35.00|
- Shortest-duration occupations
The 10-day service standard for this category is limited to employers requesting temporary foreign workers for a short duration, defined as 120 calendar days or less, in any occupation where the wage offered is at or above the provincial or territorial median wage. Positions falling under this category include those related to repairs or manufacturing equipment and warranting work.
After receiving a positive LMIA, the employer should send a copy to their identified foreign worker. The positive LMIA must be included in the worker’s application for a Temporary Work Permit.
A single LMIA can be issued for one or multiple employees. In the case of multiple employees, the LMIA will only be issued to employees who will be filling identical positions as identified by the Canadian National Occupation Classification.
There are several instances where an employer may be exempt from the requirement to secure a LMIA. For more information on LMIA Exemptions, please click here.
To find out if you or your business is eligible to apply for a LMIA, please contact us today.
Employers wishing to hire a temporary foreign worker to Canada must pay a processing fee of CDN $1,000 for each request for a Labour Market Impact Assessment. There is also be an additional $100 privilege fee on employers charged by Employment and Social Development Canada.
English and French are the only languages that can be determined as job requirements, both for LMIAs and for job vacancy advertisements, unless the employer can prove that another language is otherwise required for the position.
In addtion, employers must advertise all job vacancies across the Canadian job market for at least four weeks before applying for a LMIA. Towards this end, employers are required to prove that they have used at least two other recruitment methods in addition to having posted an advertisement on the Canada Job Bank. Employers must focus advertising efforts on groups of Canadians who are under-represented, such as First Nations or persons with disabilities.
Employers are also required to submit a transition plan to ESDC, along with the application for a LMIA, for high-wage positions. This transition plan should indicate how the company plans to reduce its reliance on temporary foreign workers in the future. Proof of investment in skills training or hiring Canadian apprentices are examples of how employers can prove this. Alternatively, employers can demonstrate how they are assisting their high-skilled temporary foreign worker(s) in becoming Canadian permanent residents. If the employer is chosen for an inspection, or if they apply to renew their LMIA, they will be required to report on the progress of the transition plan that they have submitted.
Employers are required to attest to their awareness that they are prohibited from laying off or cutting the hours of Canadian workers working in the same postion(s) as the temporary foreign worker(s) working at the company.