Labour Market Impact Assessment

LMIA

Labour Market Impact Assessment (LMIA)

Employers are required to apply for a Labour Market Impact Assessment (LMIA) before they can hire foreign workers in most cases (see exemptions including CUSMA(previously called NAFTA), In order to obtain a positive LMIA, the employer must prove that there is no Canadian worker available to do the job in question and a foreign worker is therefore needed.

LMIA applications should show the following:

• Efforts made to recruit and/or train willing and available Canadian citizens/permanent residents;
• Wages offered are consistent with the prevailing wage rate paid to Canadians in the same occupation in the region;
• Working conditions for the occupation meet the current provincial labour market standards; and
• Any potential benefits that hiring a foreign worker might bring to the Canadian labour market, such as the creation of new jobs or the transfer of skills and knowledge.

The positive LMIA is provided to the foreign worker to submit with his/her application for a work permit.

Hiring International Students after PGWPP

Immigration and Citizenship Canada’s (CIC) Post-graduation Work Permit Program (PGWPP) provides Canadian work experience to eligible foreign students graduating from a participating Canadian post-secondary institution. These recent graduates can work for up to 3 years under the PGWPP without the employer having to apply for a Labour Market Impact Assessment (LMIA) from Employment and Skills Development Canada (ESDC)/Service Canada.

Employers, who want to permanently employ these graduates following the completion of the PGWPP, must ensure that the:

• LMIA applications are submitted to ESDC/Service Canada approximately 4 months before the expiry date of the post-graduation work permit;
• positions offered to the graduates are for higher-skilled occupations classified as management, professional or technical (National Occupational Classification (NOC) skill type 0, or skill level A or B).

Employers hiring former PGWPP participants in higher-skilled occupations are not required to conduct recruitment or advertisement efforts, provided, the LMIA is received by the appropriate Service Canada Centre within 90 days of the expiration of the post-graduate work permit. 

Employers hiring temporary foreign workers (TFW), including international students graduating from recognized post-secondary institutions in Canada must:

• comply with the prevailing wage set by Employment and Skills Development Canada (ESDC)/Service Canada;
• be prepared to provide documentation that clearly demonstrates the wage being paid to the foreign worker