New Measures will take effect for Labour Market Impact Assessment (LMIA) Applications

Starting September 26, 2024, new measures will be implemented regarding Labour Market Impact Assessment (LMIA) applications for low-wage positions. Here are the key changes:

1. Processing Restrictions

• Certain LMIA applications for low-wage positions in census metropolitan areas (CMAs) with an unemployment rate of 6% or higher will not be processed.

2. Caps on Low-Wage Positions

• The current 20% cap on the proportion of low-wage positions in specific sectors will be reduced to 10%.
• In the construction and healthcare sectors, the cap will be adjusted to 20%.

3. Employment Duration

• The maximum employment duration for low-wage positions will be reduced from 2 years to 1 year.

Conditions for Refusal to Process LMIA Applications

Certain conditions may justify the refusal to process an LMIA application, including:

Regulatory Authority

• Applications from ineligible employers in the Temporary Foreign Worker Program will not be processed. This includes employers who:
  • Regularly provide services in the sex industry (e.g., striptease, escort services).
  • Appear on the Immigration, Refugees and Citizenship Canada (IRCC) ineligibility list, including those:
    • Found non-compliant in an employer compliance review.
    • Banned from the program due to non-compliance during inspections.
    • In default of administrative monetary penalties.

Ministerial Instructions

LMIA applications may also be refused based on public policy considerations, including:

• Positions exceeding the cap on low-wage positions.
• Low-wage positions in CMAs with an unemployment rate of 6% or higher.
• In-home caregiver positions with a live-in requirement.
• Any position if the employer has had an LMIA revoked in the past 2 years.
• From September 3, 2024, to March 3, 2025, specific low-wage positions in the economic region of Montréal.

Specific Position Caps

Low-Wage Positions Above the Cap

• LMIA applications will not be processed if the employer exceeds the 10% cap for low-wage Temporary Foreign Workers (TFWs) at the same location.

Sector-Specific Caps

For the following sectors, LMIA applications will not be processed if the proportion of low-wage TFWs exceeds 20%:

• NAICS 23: Construction
• NAICS 311: Food Manufacturing
• NAICS 622: Hospitals
• NAICS 623: Nursing and Residential Care Facilities
• NAICS 61 & 62: Educational Services and Healthcare/Social Assistance, specifically for:
  • NOC 31301: Registered Nurse
  • NOC 32101: Licensed Practical Nurse
  • NOC 44100: Home Childcare Providers
  • NOC 44101: Attendant for Persons with Disabilities, Home Support Worker, Live-In Caregiver, Personal Care Attendant

Note: This exemption applies to all in-home caregivers; ESDC and IRCC are evaluating the impact for future measures.

Conclusion

These changes aim to address labor market conditions and ensure compliance with immigration policies. Stakeholders are encouraged to review the new regulations carefully to understand their implications for LMIA applications.