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Examining what a Labour Market Impact Assessment is

October 4, 2022

By CIC News |

Canadian employers may need to get a Labour Market Impact Assessment (LMIA) before hiring a foreign worker.

An LMIA is an employer-requested document that companies looking to hire temporary foreign workers under the Temporary Foreign Worker Program (TFWP) — a program designed to employ foreign nationals and temporarily address labour shortages at times when no qualified Canadians are available to work such positions. Employers will submit as proof that their hiring of foreign employees will not have a negative effect on the Canadian labour force.

It is vital to Canada’s maintenance and growth that the country preserves a strong and developing naturalized Canadian workforce, which necessitates the use of LMIAs to aid in achieving this goal.

Basics of an LMIA

Understanding the concept of Labour Market Impact Assessments requires an initial understanding of how they are facilitated.

Before addressing a few nuances of LMIAs, here are a few general factors that are pertinent to these assessments. As part of this process, employers must:

Prove that no qualified Canadians were passed over for the job in favour of a foreign worker
Guarantee that the hired foreign worker will be paid a wage and provided benefits that meet federal and provincial standards
Prove that they have tried, prior to seeking out a foreign employee, to find a Canadian citizen or permanent resident for the vacant position
LMIAs are also not as cut-and-dry as they may seem. In other words, employers cannot just simply apply for an LMIA immediately when a job at their organization is open. Canada requires that employers advertise a vacant job opportunity for a minimum of four weeks prior to applying for an LMIA. In those four weeks, the employer must also have advertised the position using at least three recruitment methods — one specifically being the Canada Job Bank.

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