Types of LMIA

The Labour Market Impact Assessment (LMIA) comes in different types, depending on the nature of the job and the specific goals of the employer. Understanding these categories helps employers navigate the LMIA application process more effectively.

High-Wage vs Low-Wage LMIA

LMIA applications are classified based on whether the position offered is high-wage or low-wage. The wage threshold is determined by the median hourly wage in the province or territory where the job is located.

• High-Wage LMIA: Jobs that pay at or above the provincial or territorial median hourly wage. Employers hiring for high-wage positions are often required to submit transition plans showing their efforts to reduce dependency on temporary foreign workers over time.
• Low-Wage LMIA: Jobs that pay below the median wage. Employers offering low-wage positions face stricter caps on the number of foreign workers they can hire and may need to provide additional conditions, such as transportation and affordable housing for workers.

LMIA for Temporary Foreign Workers

Employers who need to hire foreign workers on a temporary basis must apply for an LMIA specific to temporary foreign workers. This type of LMIA helps businesses fill short-term labor shortages when no qualified Canadian candidates are available.

Temporary Foreign Worker LMIAs are commonly used in industries like agriculture, hospitality, and construction. Employers must demonstrate efforts to recruit Canadian citizens or permanent residents before submitting an LMIA application.

LMIA for Permanent Residency Support

An LMIA can also be used to support a foreign worker’s application for permanent residency in Canada. In this case, a positive LMIA allows the foreign worker to claim additional points in the Express Entry system, increasing their chances of obtaining permanent residency.

This type of LMIA is beneficial for employers who want to retain skilled foreign workers on a long-term basis by helping them transition from temporary to permanent status in Canada.