A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job.
LMIA, previously known as Labour Market Opinion (LMO), is a certificate issued by the Canadian government to an employer after due consideration that allows Canadian citizens to hire foreign nationals who can then work on Canadian soil.
The decision regarding the status of the LMIA is made by ESDC or Economic and Social Development, Canada. Before ESDC makes the final decision, the following factors are considered:The submission of a transition plan is an essential requirement for all Canadian employers who are looking to hire a temporary foreign worker(s) at a wage equal to or higher than the provincial/territorial median hourly wage. In the interest of Canadians, employers are required to develop a plan to reduce their reliance on temporary foreign workers.
The process of completing a Labour Market Impact Analysis (LMIA) does not require employers to submit a transition plan for hiring low-wage workers. Contrary to high-wage workers, low-wage temporary foreign workers are subject to a limit that restricts the number that can be employed by a particular company. There will be a 10% cap on low-wage temporary foreign workers for Canadian employers with more than 10 employees.
To give Canadian employers time to transition to a Canadian workforce, this cap will be phased in over the next two years.
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