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Canada Announces Changes In Work Permit LMIAs | Effective May 2024

Canada announces changes in work permits for foreign workers with LMIA (Labour Market Impact Assessment).

The announcement was made amidst the current labor shortages hitting Canada provinces as unemployment rates have also been reported to have increased.

This means that effective from May 2024, the new Labour Market Impact Assessment for temporary residents will be reduced to six months as against the previous twelve.

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What is the Labour Market Impact Assessment (LMIA)?

With respect to Canadian immigration, LMIA stands for Labour Market Impact Assessment.

It is an assessment done which is done by the Employment and Social Development of Canada (ESDC) for an employer who is having difficulty filling an important job position.

If an employer has a positive LMIA, it means that he is allowed to hire a foreign worker since he has been unable to fill the vacant job position with a competent Canadian citizen.

The ESDC introduced a number of changes to fill the very high number of vacant positions created by the COVID-19 pandemic.

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These changes have now been reversed due to a rising reduction in job vacancies across the country.

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Why the changes were made?

The Canadian Government adjusted the Temporary Foreign Worker Program in response to shifting labour market conditions and a decline in job openings.

The Temporary Foreign Worker Program (TFWP) allows Canadian employers to hire foreign workers to fill temporary labour and skill shortages when qualified Canadians are not available.

Job vacancies in Canada have now dropped significantly, and the unemployment rate is climbing.

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According to reports, the Canadian unemployment rate during the month of March was 6.1%, which was a 0.3% increase month-on-month.

The Canadian Government aims to ensure that the LMIA is only used for foreign workers when there are no Canadians available to fill the required position.

Please note that these changes do not affect the Work Permit. This is actually the validity of LMIAs. A timeframe within which an employer has to hire a foreign worker and apply for a work permit.

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Canada Announces Changes In Work Permit: The Changes

Effective from May 2024, the new Labour Market Impact Assessment for temporary residents will be reduced to six months as against the previous twelve.

Previously, employers only needed to prove that they had made reasonable attempts to hire Canadian permanent residents and/or citizens, but now they will also need to include asylum claimants on work permits.

Except for the construction and health care industries, all industries will have to reduce the percentage of their entire workforce that may enter under the low wage stream of the Temporary Foreign Worker Program from 30% to 20%.

Before requesting an LMIA, employers will need to look at all of their options, including hiring asylum seekers who have valid work permits in this country.

What industries are affected?

  • Food Manufacturing
  • Wood Product Manufacturing
  • Furniture and Related Product Manufacturing
  • Accommodation and Food Services
  • Construction
  • Hospitals and
  • Nursing and Residential Care Facilities

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Canada Announces Changes In Work Permit: Conclusion

The Canadian Government is looking to address the rising rate of unemployment especially for her citizesn.

As a result, LMIAs will be valid for a period of six months, resulting in a shorter duration for foreign nationals to apply for a work permit.

With this initiative, the rate at which temporary foreign workers shall be employed by employers in certain sectors will decrease from 30 percent to 20 percent.

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