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What is a Labour Market Impact Assessment?

Business Immigration | Labour Market Impact Assessment

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC), a government department in Canada. The purpose of an LMIA is to assess the impact of hiring a foreign worker on the Canadian labour market. An LMIA is a necessary component of various Canadian immigration visa applications. 

The LMIA process is designed to ensure that hiring a foreign worker will not have a negative impact on the job opportunities and wages of Canadian citizens and permanent residents. Employers typically need to demonstrate that they have made efforts to hire Canadian workers first and that hiring a foreign worker is necessary due to a shortage of certain skills or qualifications among Canadian workers.

Key points regarding LMIAs:

  • A foreign national cannot apply for an LMIA. Employers are responsible for applying for an LMIA before hiring a foreign worker.
  • An employer may submit an application for an LMIA as early as 6-months prior to the intended start date for the position.
  • The employer must provide details about the job, such as the duties, responsibilities, and wages. The wages offered to the foreign worker must be consistent with the prevailing wage rates for the occupation in the region.
  • Employers are generally required to demonstrate that they have made reasonable efforts to hire Canadian citizens or permanent residents for the position before turning to a foreign worker.
  • The application includes an assessment of how hiring a foreign worker might impact the Canadian labor market.
  • Employers must comply with all relevant employment standards, including working conditions and wages.

A “positive” LMIA indicates that there is no Canadian citizen or permanent resident to fill a position, therefore enabling an employer to hire a foreign national. A “negative” LMIA indicates that a position should be filled by a Canadian citizen or permanent resident.

If the LMIA application is approved, the employer can provide a “positive” LMIA to the foreign worker, who can then use it to apply for various forms of work permits.

It’s important to note that LMIA requirements and processes may change, so it’s advisable to check with the relevant authorities or consult the latest guidelines when considering hiring a foreign worker in Canada.

Joorney Creates Business Plans for Canadian Business Immigration

If you’re considering one or more of the various programs associated with business immigration to Canada, consider learning more about business plans from Joorney. 

Business plans are sometimes obligatory, sometimes optional but always useful when it comes to any business-oriented immigration visa application. They help to clarify your plans in a way that immigration officers understand well while showing that your plans align with the requirements and goals of the visa program you’re applying for.

To learn more about how we support entrepreneurs seeking new opportunities in Canada, click here.

Disclaimer: Joorney Business Plans is not a law firm nor an immigration consulting firm, and no information provided in this document should be considered as legal advice or recommendation regarding any immigration application program. All information provided in this document should be verified by a licensed or certified immigration professional before the reader can act on this information. As such, it is understood that Joorney Business Plans Inc. shall not be liable for any loss or damage of whatever nature (direct, indirect, consequential, or other), whether arising in contract, tort, or otherwise, which may arise as a result of your use of (or inability to use) this document, or from your use of (or failure to use) the information on this document.

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