New LMIA Regulations in Canada
Canada has struck labor market impacting assessment (LMIA) regulations with significant changes that push towards adapting the ever-changing economic conditions. These have touched the employers who are in urgent need of labor as well as the immigrants who are seeking the job opportunities available in Canada.
Overview of New LMIA Regulations
These regulations came into effect on September 26, 2024 with aims to work towards the need for reduced foreign labour and to focus on getting available Canadian workers into those areas where unemployment is over 6%.
Major Overhaul of the Temporary Foreign Worker (TFW) Program
- LMIAs Suspension in Areas of High Unemployment Rates In provinces with an unemployment rate exceeding 6%, LMIA processing on low-wage positions is placed under moratorium except in agriculture, construction, health care, and food processing.
- Limited Foreign Staff There is a reduction of the cap limit for foreign workers hiring from 20% to 10%. The exemption applies for essential sectors such as agriculture and healthcare, due to the significant labor shortages of the concerned industry.
- Decrease in Employment Period for Foreign Low-Wage Worker The employment period of the low-wage foreign workers from two years has now been reduced to a year. This move requires employers to look at alternative long-term choices, such as hiring local talent. Previous Changes Directed to Tame LMIA Fraud In August 2024, the government had already set rules to tackle fraud in the LMIA. It kept in place some of the provisions included in other provisions, comprising the 20% cap on low-wage and enhanced controls.
Increased Surveillance and Fees The government has increased surveillance as well as intentions to increase LMIA fees in order to discourage the abuse of the program as well as reduce frivolous applications.
Sector-Specific Exemptions and LMIA Closures in Quebec
Quebec has suspended processing LMIAs for low-skilled jobs below $27.40 per hour, especially targeting Montreal, due to preference for locals over foreigners.
Adopting Economic Changes and Future Evaluation
Increasing the unemployment rates, these changes balance labor shortages with the prime intent of favoring Canadian workers. Review of TFW Program within 60 days to further refine the scope of its use.
Conclusion
Changes in LMIA reflect Canada’s strategic approach to economic realities, one to favor local labor at hand while not avoiding real shortages. The employer and foreign worker should know
