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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.

The employer needs to demonstrate in the application, the following things, in order to get a positive LMIA-

that there will be no negative effect on the Canadian labour market;
that they have attempted to find a qualified Canadian for the job and no Canadians were suitable;
that the foreign worker would be given the benefits and salary as per federal and provincial standard

Temporary foreign workers are paid under the median provincial page, which is considered to be low-wage. The workers who are paid at or above the median wage are considered high-wage. The LMIA process is different for these two classifications, respectively.

DIFFERENT OPTIONS OF LMIA BASED WORK

High-Wage Workers

Employers who are seeking to hire foreign nationals as high-wage workers are required to submit transition plans along with their LMIA application. A transition plan is designed to make sure that employers are offering the job to the foreign workers as a last and limited option to fill the job on a temporary basis when a Canadian is unable to do it for them. This plan ensures that the employers are not relying on temporarily hired foreign nationals over time. They also need to demonstrate how they are helping their high-skilled foreign worker in becoming a permanent Canadian resident.

MEDIAN HOURLY WAGES BY PROVINCE/TERRITORY

Various provinces provide various median hourly wages-

Alberta

$26.67

Ontario

$23.08

Manitoba

$21.00

Quebec

$22.00

Saskatchewan

$24.52

Nunavut

$30.00

Northwest Territories

$34.00

British Columbia

$23.98

Prince Edward Island

$19.49

New Brunswick

$20.00

Nova Scotia

$20.00

Yukon

$30.00

Newfoundland and Labrador

$22.00

Source: Statistics Canada, Labour Force Survey, 2017 and 2018

Low-Wage Workers

However, it must be ensured that Canadians are considered first for available jobs. The government of Canada has put a cap to limit the number of foreign workers at a low-wage. However, certain low-wage jobs may be denied for the LMIA process. Since 2016, the LMIA process for employers is subject to a 10 percent cap. If the employer has employed ten or more employees, 10% of their workforce can consist of low-wage, temporary foreign nationals. This measure is taken to limit the number of foreign workers in the job market.

Employers offering a wage that is below the provincial/territorial median hourly wage must:
Employers who offer a wage lower than the median wage must-

provide an employer-employee contract and get the foreign worker registered with the provincial workplace safety board
ensure that affordable housing is available
must pay for transportation of the worker
must pay for private health insurance until the worker is eligible for provincial health coverage

The labor force survey is used to determine unemployment rates across Canada for the temporary foreign worker program. These rates show the regions in which an employer can process an LMIA for low-wage workers in accommodation, food services, and retail trade sector. LMIA will not be processed in the regions where the unemployment rate is 6% or more.
The following table shows the feasibility of an LMIA application in different provinces of Canada.

Province/ Territory

Economic Region

Unemployment Rate effective as of April 1, 2019 (%)

Above/At Or Below 6%

The above rates are effective as of April 1, 2016.

Source: Statistics Canada, Labour Force Survey, 2016, 2017 and 2018

Expediting a LMIA

LMIA is provided within 10- business days of applying for the following categories as per IRCC-

Highest-demand occupations

The positions which are essential to the development of major infrastructure and natural resource extraction projects are required for the economic growth of Canada. These are the skilled trade positions where high-wage is offered. Hence, a 10-day service standard applies to this category.

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OCCUPATION TITLE

NOC 2011

OCCUPATION TITLE

Highest-paid occupations

A 10- day service standard is provided to employers hiring high-waged workers. This wage level shows that the temporarily hired foreign worker is the highest-skilled in their profession, and no Canadian is able to match his/her skills.

Hover over the provinces/territory to know the Wages effective April 1, 2019 ($/hour).

Alberta

$52.00

Ontario

$47.12

Manitoba

$42.00

Quebec

$42.56

Saskatchewan

$46.00

Nunavut

$55.00

Northwest Territories

$58.60

British Columbia

$44.00

Prince Edward Island

$37.50

New Brunswick

$39.00

Nova Scotia

$40.87

Yukon

$48.00

Newfoundland and Labrador

$43.96

Source: Statistics Canada, Labour Force Survey, 2017 and 2018

Shortest-duration occupations

When an employer wants to hire a foreign worker for 120 days or less in an occupation where the wage offered is above the median wage, the 10-day service standard applies.

Positions such as warranty work or equipment manufacturing fall under this category.
The positive LMIA received by the employer should be sent to their foreign worker. This approved LMIA must be included in the worker’s temporary work permit application.
A single LMIA may be issued for more than one employee. The issuance of LMIA to employees is subject to the fulfillment of identical positions as recognized by the Canadian National Occupation Classification.

However, an employer may be exempted from the requirement to secure an LMIA under various circumstances.

Advertising Requirements

Employers willing to hire must pay a processing fee of CDN $1,000 to proceed with their LMIA application.

For LMIAs and job vacancies, English and French are put forth as requirements unless the employer proves the need for some other language for the job position.

To apply for an LMIA, employers are required to advertise the job vacancy across the Canadian labor market for at least four weeks in advance. The focus of the advertisement must also reach under-represented Canadians, such as a person with disabilities. Also, they need to demonstrate that except for advertisement, they have adopted two other recruitment methods.

Employers must know that they are prohibited from cutting off the Canadian workers’ working hours who are in the same positions as the temporary foreign workers.

QUEBEC-SPECIFIC EXEMPTIONS AND VARIATIONS

In the province of Quebec, there are variations to the LMIA process.

WORK PERMITS and QUEBEC SELECTION CERTIFICATE (CSQ)

A candidate who has secured a Quebec Selection Certificate/Certificat de sélection du Québec (CSQ) from the government of Quebec may work under any employer in Quebec without fulfilling LMIA conditions. This certificate is given to candidates who have been approved to immigrate to the province.

FACILITATED LIST OF OCCUPATIONS

The list of facilitated LMIA occupations for Quebec extends to Industry sectors experiencing a high demand for labor. Employers in Quebec who apply for the LMIA process need not prove the recruitment efforts.

OTHER WORKERS

Candidates who do not fall into either of the above categories may have to apply for and obtain a Certificate of Acceptance to Quebec (CAQ) and a temporary work permit before beginning their employment in Quebec.