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Everything a Job Seeker Needs to Know about the LMIA

Updated: Feb 24, 2020

LMIA stands for Labour Market Impact Assessment and is a labour market verification process whereby Employment and Social Development Canada (ESDC) assesses an offer of employment to ensure that the employment of a foreign worker will not have a negative impact on the Canadian labor market. Therefor, if a positive LMIA is issued, that means that ESDC has determined that hiring a foreign worker will result in a neutral or positive effect on the labour market in Canada.

What kind of information is assessed in order to make a positive determination on an LMIA application? The following is a list of factors that are considered:

+ Has the employer tried to recruit Canadians or permanent residents for the position? There is a mandatory requirement for the open position to be advertised for a minimum of three month prior to applying for an LMIA

+ After the mandatory recruitment process has been completed, the next step is for the employer to apply for an LMIA under the premise that the recruitment efforts inside Canada were not successful and a foreign worker is still required in order to fill the position

+ It is essential that the recruitment is carried out correctly and targeting the right audience. Also wages and/or benefits must be appropriate for the position and the job duties

+ Companies that are successful in obtaining a positive LMIA are, typically, in business for at least two years and having filed corporate returns with the Canada Revenue Agency (CRA)

+ They have sufficient funds on account in order to pay wages for the first year to the foreign worker

+ They are offering full time employment that is not seasonal unless applying for a seasonal LMIA

+ They have payroll and other employees on payroll

+ They are not overly relying on the Temporary Foreign Worker Program (TFWP) to fill positions within their company or they have an established plan on how to reduce their reliance on foreign workers in the future

+ The job offer is genuine and necessary within the company