LMIA

What is a Labour Market Impact Assessment (LIMA)?

According to the Government of Canada, a Labour Market Impact Assessment (LMIA) is a
document that an employer in Canada may need to get before hiring a foreign worker. A
positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show
that no Canadian worker or permanent resident is available to do the job. LIMA was
established by Employment and Social Development Canada, to prevent any negative impact
on Canadian workers. Once the employer receives the LIMA, the worker can apply for a work
permit.

How to know if you need an LIMA & How to get LIMA

• The first step is to apply for an LMIA from Employment and Social Development Canada
  (ESDC). The employer must demonstrate that there is a need for a foreign worker to fill
  the job position and that no Canadian citizen or permanent resident is available to do the
  job. You will be expected to pay the fee of 1000 dollars per worker.
• Employer advertises the job: As part of the LMIA application process, the employer is
  typically required to advertise the job position to Canadian citizens and permanent
  residents. This ensures that the job market has been tested before hiring a foreign
  worker.
• Please make sure that it is advertised for at least 30 days and has occurred in the 3

months prior to submitting the LMIA application, following with a
minimum of 4 consecutive weeks within the 3 months prior to submitting an
LMIA application. Moreover, it has to have three sources of advertisement, and
one of the sources has to be advertised on the Government of Canada’s Job
Bank, and using the Job Match Service. The Job Match service offers a platform
where you can view anonymous profiles of job seekers that align with the skills
and requirements you’ve specified in your job posting. Matches are rated from 1
to 5 stars, indicating the level of compatibility between your
job and the job seeker. Choosing the “default” option allows for matches with a
wide range of backgrounds, while “strict” limits matches to fewer job seekers. For
high-wage positions, you must invite all job seekers rated 4 stars or higher within
the first 30 days of posting to apply for the position.

• Further on, keep in mind that for advertisement it also splits between Low and
  High wage jobs. For high wage jobs (qualified into 4th and 5th placement) on Job
  Match, you have to invite all the qualified Canadians to apply for it. To the low
  wage jobs, you do not have to.
• Submit and LIMA Application: The application requires both fees and documents.
  Where the employer has to upload job offers, roles, wage, and working conditions.
  You might also need to provide financial documents as well. You must submit the
  proof of advertisement of Where, When, and how long the position was advertised.
  Here are the requirements:
• a copy of the advertisement and information to support where, when and for how
  long the position was advertised
• proof that the print media and websites used to advertise target an audience that
  has the appropriate education, professional experience or skill level required for
  the occupation
• proof of other recruitment activities (for example, an invoice from a Job Fair) – Receive a
  positive LMIA: If the LMIA application is approved by ESDC, the employer will receive a
  positive LMIA. This document confirms that the employer has met all the requirements and
  is allowed to hire a foreign worker for the specified position.

Hire a foreign worker in a high-wage or low-wage position:

The chart below will help to determine if you need to apply LMIA under the stream for
high-wage positions or low-wage.

• At or above the provincial or territorial median hourly wage, you must apply under the
  stream for high-wage positions
• Below the provincial or territorial median hourly wage, you must apply under the
  stream for low-wage positions

Furthermore, for low-wage LMIA, there are caps on how many foreign you can admit through
LMIA, with the range of 20-30%. Basically all jobs are subjected to 20%, however the following
jobs are allowed to take up to 30% of your company.

• Construction (NAICS 23)
• Hospitals (NAICS 622)
• Nursing and residential care facilities (NAICS 623)

Ability to Fulfill the Terms of the Job Offer

You do not need to submit support documents if you received a positive LMIA decision in the
past two years and the approval was positive. However, if you are a first time applier or haven’t
received a positive LMIA decision in the past two years to which you received a positive
decision, you must submit at least one of the following documents:

• Your most recent T2 Schedule 100 Balance sheet information and T2 Schedule 125
  Income statement information
• Your most recent T2042 Statement of farming activities
• Your most recent T2125 Statement of business or professional activities –
  Your most recent T3010 Registered charity information return
• Your most recent T4 or payroll records for a minimum of 6 weeks immediately prior to the
  submission of this LMIA application, if the temporary foreign worker (TFW) already
  works for you
• An attestation confirming that your business is in good financial standing and will be able
  to meet all financial obligations to any TFW you hire for the entire duration of their
  employment.

Proof of Providing a Good or Service

You do not need to submit support documents if you received a positive LMIA decision in the
past two years and the approval was positive. However, if you are a first time applier or haven’t
received a positive LMIA decision in the past two years to which you received a positive
decision, you must submit at least one of the following documents:

• A valid municipal/provincial/territorial business license
• Your most recent T4 Summary of remuneration paid
• Your most recent PD7A Statement of account for current source deductions – An
  attestation confirming that you’re engaged in a legal business that provides a good or a
  service in Canada where an employee could work and a description of the main business
  activity.

LMIA Point system

The LMIA points system is integrated into the Comprehensive Ranking System (CRS) used for
Express Entry. The CRS is a points-based system that ranks candidates based on several
factors, including age, education, work experience, language proficiency, and the presence of a
valid job offer supported by an LMIA.
Points Allocation for LMIA-Backed Job Offers

A valid job offer supported by an LMIA can significantly boost your CRS score, making you more
competitive in the Express Entry pool. The points allocated for a job offer vary based on the
National Occupational Classification (NOC) code of the job:

● 200 Points: For job offers in NOC 00 (Senior Management Occupations)
● 50 Points: For job offers in NOC 0, A, or B (Other Skilled Positions)

These additional points can be critical in securing an Invitation to Apply (ITA) for permanent
residency, as they can elevate your CRS score above the cutoff threshold in Express Entry
draws.

LMIA for caregivers:

In cases such as the caregivers, they might be exempt from the processing fee of 1000
dollars if two of the conditions applied:

• If the caregivers are hired for seniors and people with disabilities
• If the caregivers are hired for children under 13 year old and their gross annual
  income is less than 150,000