The Labour Market Impact Assessment (LMIA) Process

The LMIA application process is complex and time-consuming, with time-sensitive requirements and a final interview with a Service Canada representative.

The steps include identifying the correct employment stream and meeting all of Employment Social Development Canada’s (ESDC) requirements for job descriptions, wages, advertisements and recruitment drive.

Additionally, you will need to complete the forms and provide supporting documentation to ensure ESDC compliance.

Failing to get everything right can mean the LMIA application being rejected and the $1000 processing fee lost.

Having an expert guide you through each step, helping you to ensure a complete and decision-ready LMIA application, can be the difference between success and failure.

What Is a Labour Market Impact Assessment?

An LMIA Application is a validation issued by ESDC saying that a genuine and acute skill or labour shortage exists.

The employer must meet the requirements of an ESDC-compliant recruitment drive which targets Canadians and Permanent Residents, and prove that they are unable to find suitable candidates for the position. A positive determination provides eligibility to apply to Immigration and Refugee Citizenship Canada (IRCC) for an employer-specific work permit to help fill the skills gap thus bringing economic benefits to the employer and the economy as a whole. 

LMIAs can also be used as an instrument to support an application for Permanent Residency. 

The program has multiple streams, including high-skilled, low-skilled, caregiver, primary agriculture, and film and entertainment.

The LMIA is just one offering in the Temporary Foreign Worker Program, there are other streams such as the Global Talent Stream for high-skilled workers, LMIA exempt work permits and free-trade agreements that should be explored as part of the assessment process to find the best route for your circumstances.

What Is the LMIA Application Process?

The LMIA Application Process is bureaucratic and involves multiple steps to validate that the skill shortage is real and that substantial efforts to recruit Canadians have been made. 

The basic steps include the following;

  • Identifying the correct stream, determining whether the position is high-wage or low-wage;
  • Choosing the right occupation code  and crafting the job description and employment requirements;
  • Drafting job advertisements that meet ESDC requirements and posting methodology;
  • Completing all the necessary forms and requirements, for example, the transition plan for high-wage applications, and meeting the 20% cap rule for low-wage applications to name two;
  • Service Canada Interview preparation, where the employer is examined by the Service Canada agent to ensure ESDC compliance and program integrity.

Can You Apply for an LMIA Yourself?

Sure you can and people do!

But often times employers and employees recognize that it is a complex process and there is skin in the game.  ESDC application processing fees are $1000 per application and the additional points that an LMIA can bring to a prospective immigrant to improve their Express Entry score are no small potatoes. 

It all depends on how much time you have available, your attention to detail and your comfort level in going it alone.

What Are the Requirements for a Successful LMIA Application?

We have been around the block and know what Service Canada agents are looking for.  Successful LMIA applications have the following characteristics; 

  • There needs to be a genuine and acute skills shortage that is documented by Statistics Canada and regional labour market information;
  • The Company must have the financial means to pay the wage and to meet payroll for all employees.  ESDC does a deep dive into Company financials and wants to see T2, T100, T125 and PD7A’s as proof of eligibility;
  • It has to make sense.  An application needs to have a business case as to why they need the workers they need, you would be surprised how many employers fail to support the reason they need the skills and expertise they are seeking;
  • If the application is in support of Permanent Residency the Company must have been established for at least 1 year, you would be amazed how many times people miss this.
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