Understanding the LMIA Low Wage Changes: What You Need to Know

The Canadian government, through Employment and Social Development Canada (ESDC), has recently updated its list of Census Metropolitan Areas (CMAs) where low-wage Labour Market Impact Assessments (LMIAs) will no longer be processed. If you're an employer looking to hire through the Temporary Foreign Worker Program (TFWP), or a foreign worker hoping to renew your permit, these changes are important to understand. ESDC reviewed the unemployment rates of major cities across Canada to determine which areas would be affected.

However, if your business is located in an area with a high unemployment rate, there are still options for hiring foreign workers. Here are a couple of alternatives you can explore:

1. LMIA High Wage

The LMIA High Wage stream is for positions offering salaries above the average for the specific occupation in the area. If a position meets this criteria, it is not subject to the unemployment rate restrictions that apply to low-wage LMIAs. Employers can hire foreign workers for high-wage positions without worrying about the unemployment rates in specific areas. This provides an excellent opportunity for employers looking to fill specialized roles with competitive salaries.

2. LMIA Exempt

There are situations where employers do not need to apply for an LMIA at all. Certain workers may be eligible for LMIA exemptions under agreements like international trade agreements (e.g., the Canada-United States-Mexico Agreement, CUSMA), or for intra-company transfers. If an employee is being transferred within the same company from an overseas office or branch to a Canadian location, they may qualify for an LMIA exemption.

These options provide flexibility for employers who want to hire foreign workers, even in areas where low-wage LMIAs are no longer being processed.

If you're considering hiring a foreign worker or need assistance understanding which LMIA stream is best for your situation, e-Visa Immigration is here to help. Schedule a consultation with one of our immigration experts today, and we’ll guide you through the process!