Who will be most impacted by the tightened LMIA policy effective on May 1st, 2024? How will the affected group react to the change?

On March 21, 2024, Immigration Minister Marc Miller and Employment Minister Randy Boissonnault announced changes to the New Labour Market Impact Assessments (LMIAs). Effective May 1, 2024, LMIAs will be valid for six months instead of 12 months. This change aims to ensure more accurate labor market needs.

Additionally, all employers identified in the 2022 Workforce Solutions Road Map will have a reduction in the total workforce that can come in through the Temporary Foreign Worker Program, under the low wage stream, from 30% to 20%. However, there is an exception for the construction and healthcare sectors.

Who will get the most impact?

Canadian Employers

Employers will have to consider other options before applying for an LMIA, such as recruiting asylum seekers with valid work permits in Canada. The new measures are in response to the current local labor market situation in Canada. The previous policies for the surge of temporary foreign workers were adopted to react to the labor demand during the pandemic in 2022. However, with the gap between unemployment and job vacancies, as well as the surge of population in Canada's temporary residents, a review of the LMIA policies with tighter measures on foreign workers has been put in place.

This change will impact Canadian employers who will find it more difficult to hire foreign workers. The ratio of getting a positive LMIA will decrease due to the limited quota.

Additionally, the validity period of an LMIA will be reduced by six months. Therefore, if the foreign worker fails to obtain a work permit before the expiration of LMIA, the employer will be required to submit a new LMIA application to continue hiring temporary foreign workers.

Employers are advised to first look for local labor forces from Canadian citizens, permanent residents, and valid work permit holders who are currently in Canada.

Foreign workers

Foreign nationals who wish to immigrate to Canada by getting a job offer should review their immigration strategy, as the quota for them to receive a positive LMIA apply for a work permit, and stay in Canada is decreased.

Who gets exempted?

However, high-wage stream workers in construction and healthcare occupations will not be affected by the changes.

Who gets the benefit?

This new measure will bring good things to local Canadian work permit holders who are available to get hired in the local workforce. Canadian employers are encouraged to hire local workforces first before applying for an LMIA for a foreign worker.

Implication of the new LMIA measure

Canada has set a target to reduce the temporary resident population to 5% within the next three years. Compared to the old rules, it will become more challenging for foreign nationals to immigrate to Canada by working. However, certain occupations such as construction and healthcare will remain unaffected, so it's important to take note of these job opportunities.

Canadian employers who want to hire foreign labor from the high-wage stream and execution occupation can still apply for the LMIA without being affected by the new measure, which goes into effect on May 1, 2024.

Foreign nationals who wish to immigrate to Canada by getting a job offer should review their immigration strategy, instead of getting a job hired by Canadian employers, foreign should try to back on track of using the traditional pathway like the federal skilled worker program or federal skilled trade program from the Express Entry.

This new measure will benefit local Canadian work permit holders who will have better chances of finding employment in the local workforce.