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5 things you need to know about Labour Market Impact Assessments


While some foreign employees in Canada are exempt from the Labour Market Impact Assessment (LMIA), others do.

Before employing a temporary foreign worker, certain Canadian firms require an LMIA. Prior to filing for a work permit, the foreign national must receive this document. It confirms if the entry of a foreign worker will benefit or have no impact on the labor market in Canada.

Note: This document is not needed in LMIA-exempt employment in order for an employer to approve a foreign national’s application for a work permit.

Many foreign nationals seeking employment in Canada may be attempting to expedite their immigration process in light of the recent declaration made by Immigration, Refugees and Citizenship Canada (IRCC) that the number of temporary residents in Canada will be reduced over the course of the next three years.

As a result, this essay will walk readers through the responses to five frequently asked concerns regarding LMIAs that many international workers have.

What is a Labour Market Impact Assessment?

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker.

A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.

Once an employer gets the LMIA, the worker can apply for a work permit.

How do I know if I need an LMIA?

Employers normally need an LMIA in order to hire foreign workers, unless they qualify for an exemption. Exemptions from and requirements under the LMIA are dependent on several circumstances. Further information regarding LMIA exemptions and requirements may be found here.

Why do I need another LMIA to extend my work permit?

A foreign national must confirm the validity of their LMIA before applying for a work visa in Canada. Put another way, a foreign worker’s LMIA must still be valid at the time they apply for a work permit even if a work permit may be granted for a longer duration than the LMIA itself.

Before an employee may apply for a new work visa or an extension of their current one, their employer must get a new LMIA if the foreign worker’s first work permit expires and they wish to continue working in Canada.

Furthermore, it is crucial for employers to be aware that Employment and Social Development Canada (ESDC) will start the evaluation procedure anew and handle the case as if it were a new application when they submit an application for a new LMIA. If necessary, EDSC will be able to verify that no Canadian citizens or permanent residents are still available to fill the role of temporary foreign worker as part of this new application.

Do I need an LMIA to work in Canada as an entrepreneur?

In order to apply for a work visa in Canada, entrepreneurs do not need to have an LMIA. However, foreign nationals who come to work as entrepreneurs in Canada need to demonstrate that the company they want to run here will either:

  • Create or maintain significant social/cultural/economic benefits
  • Maintain or create jobs for Canadian citizens or permanent residents

How can an LMIA help me obtain more CRS points as an Express Entry applicant?

While candidates under the Canadian Experience Class (CEC) are not required to have an LMIA in order to be qualified for this economic immigration program, it might nevertheless be advantageous for them and for all other Express Entry candidates in general to get an LMIA from their employer.

The candidate will be eligible to get additional Comprehensive Ranking System (CRS) points as an Express Entry applicant if they have a legitimate employment offer backed by an LMIA.

Recent IRCC news about LMIAs

On March 21, Employment Minister Randy Boissonnault and Immigration Minister Marc Miller jointly announced a number of modifications to Canada’s Temporary Foreign Worker Program (TFWP).

The two ministers said that one of the modifications would be a restoration to the pre-pandemic standard of six months for each LMIA’s validity term. The date of this modification is May 1, 2024.

During the COVID-19 epidemic, Canada temporarily extended the validity of LMIAs for a period of 12 months prior to this policy adjustment. The goal of this policy was to “help ease labour market conditions” nationwide.


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Welcome to CIKH (Canada Immigration Knowledge Hub), your go-to resource for the latest and most comprehensive updates on Canadian immigration policies, news, and guidelines.