Since September 26, 2024, several changes have been implemented regarding Labour Market Impact Assessment (LMIA) applications for low-wage positions across Canada.
Definition:
The reference wage is the “median hourly wage” identified by each Province. It is $28.39 in Ontario, $29.50 in Alberta, and $28.85 in British Columbia. Any position where the offered wage is below the reference wage is considered a low-wage position.
Changes
1. LMIA applications are no longer processed when they concern:
a. Low-wage positions; and
b. The employment is located in a census metropolitan area (CMA) with an unemployment rate of more than 6%, whether the position is seasonal or not.
2. Employers can hire temporary foreign workers up to a maximum of 10% of their total workforce. The previous percentage was 20%.
3. The maximum duration of the LMIA is one (1) year.
4. “Dual intent” LMIA applications, in support of permanent residency applications for low-wage positions, are also subject to these new provisions.
Exceptions
1. Positions in the primary agriculture stream, as well as the food manufacturing, construction, and healthcare sectors, are not subject to these new rules.
2. The 10% cap mentioned above does not apply to:
a. Seasonal positions of less than 270 days;
b. Highly mobile positions;
c. Temporary jobs not exceeding 120 calendar days.
Conclusion
There is no doubt that this new regulatory environment requires more planning for your international hiring. Even though obtaining certain LMIAs has become much more challenging it is important to keep things into perspective. First, the LMIA pathway is not completely closed. Second, keep in mind that there are other work permit options available to bring the foreign talent your company needs to Canada.