Canada has implemented several significant changes to its Labour
Market Impact Assessment (LMIA) process over the past year. Here's a summary of the key updates
1. Wage Threshold Increase : Effective November 8, 2024, the wage threshold used to determine whether a position falls under the high-wage or low-wage stream has been increased by 20%. This adjustment aims to better align with current economic conditions and ensure fair compensation for foreign workers.
2. Business Legitimacy Documentation : As of October 28, 2024, employers can no longer use attestations from lawyers or chartered professional accountants to demonstrate their business legitimacy when applying for an LMIA. Alternative documentation is now required to establish the authenticity of the business.
3. Processing Restrictions in High Unemployment Areas : Starting September 26, 2024, certain LMIA applications for low-wage positions are no longer processed in census metropolitan areas with an unemployment rate of 6% or higher. This measure is intended to prioritize employment opportunities for local workers in regions with elevated unemployment rates.
4. Temporary Suspension in Montréal and Laval : From September 3, 2024, to November 30, 2025, LMIA applications for low-wage positions in the economic region of Montréal are not being processed. This suspension extends to the Laval region from March 3 to November 30, 2025.
5. Reduction in LMIA Validity Period : As of May 1, 2024, the validity period of an LMIA has been reduced from 12 months to six months. Employers are now required to submit work permit applications within this shorter timeframe.
6. Wage Update Requirements : For LMIA applications submitted on or after January 1, 2024, employers must update the wages of Temporary Foreign Workers (TFWs) to reflect the prevailing wage at the start of and throughout their employment period. This ensures that TFWs receive compensation consistent with current wage standards.
These changes reflect Canada’s ongoing efforts to balance labor market needs with economic conditions, ensuring that the employment of foreign workers supports the country’s workforce and economic objectives.
