The mission of Employment and Social Development Canada (ESDC) is to foster a stronger, more inclusive Canada by enhancing the quality of life for all Canadians. A key aspect of this mission involves supporting workers within the country. As Canada seeks to attract skilled workers from abroad to bolster its economy, ESDC plays a critical oversight role, ensuring that the arrival of these foreign workers does not adversely affect Canadian employees.

To achieve this, ESDC oversees the Labour Market Impact Assessment (LMIA), which assesses whether hiring a foreign national will have a neutral, positive, or negative impact on the Canadian labor market. A negative impact could involve scenarios where the employment of a foreign worker leads to decreased wages or job opportunities for local workers.

The LMIA process is integral to several skilled worker immigration and temporary foreign worker programs. For example, while a job offer is not necessary for obtaining permanent residency through the Express Entry system, candidates seeking to earn additional Comprehensive Ranking System (CRS) points for arranged employment must ensure that their job offer is supported by an LMIA.

Under the Temporary Foreign Worker Program (TFWP), which is specifically designed to address labor shortages, employers are mandated to apply for an LMIA. Detailed steps for obtaining an LMIA under the TFWP can be found on themillenniumimmigration.com.

If a foreign national receives a positive or neutral LMIA, they can then proceed to submit their application for permanent or temporary residency to Immigration, Refugees and Citizenship Canada (IRCC).

When assessing LMIA applications, ESDC considers various factors, including:

Whether hiring the foreign national is likely to create or retain jobs for Canadian citizens or permanent residents.
The potential for skill development or knowledge transfer that benefits Canadian workers.
The likelihood of filling existing labor shortages.
Whether the wages offered are in line with prevailing rates for the occupation and if working conditions meet Canadian standards.
The employer’s commitment to hiring or training Canadian citizens or permanent residents and their reasonable efforts to do so.
The impact of hiring on any ongoing labor disputes.
The employer’s fulfillment of commitments made in previous LMIA applications.