The Canadian government suspended the processing of Labor Market Impact Assessments, LMIAs starting October 2024 in certain regions. This means change to the work permit system with more opportunities open to Canadian workers to fill available jobs, especially in places where unemployment is high.
Reasons for Suspension
The LMIA is a critical aspect of importing foreign work because employers must prove that there are no qualified Canadians for the given position. In October 2024, the Canadian government made the decision to stop processing applications of areas whose unemployment rate was above 6%. This is a policy to reduce foreign dependence within areas which have adequate local workers who could take up job opportunities in the economy.
Impact to Employers and Foreign Workers
In regions where unemployment is at unusually high rates, certain employers will struggle to fill roles that otherwise would be filled by foreign workers. Low wage sectors are often the ones most affected, since they draw heavily on LMIAs to fill temporary foreign worker needs. Employers within these sectors will either find a way to fill the role from other sources, like locals, or they will change their business model.
However, other significant sectors of the Canadian economy, like agriculture and health, and many more vital services, will still be exempt from this policy to still use foreign labor where they are needed.
Caps and Duration of Employment
Under the restrictive policy by the Canadian government, there is a cap reduction of the foreign workers in some sectors to only 10%. The government lowered the standard period for employment for the majority of low wage jobs in foreign affairs to one year, which is significantly down from the former standard.
Government’s Objectives
These changes continue to act for the protection of the domestic labor market, particularly in provinces experiencing high levels of unemployment, and therefore labor shortages remain severe in many industries critical to national needs. Changes will be watched closely as the government balances economic needs with employment opportunities for Canadians.
