New LMIA Rules Starting September 26, 2024, in Canada
Starting September 26, 2024, certain LMIA applications for low-wage Temporary Foreign Workers (TFWs) will face stricter regulations based on industry caps and local unemployment rates.
Breakdown of the new LMIA Changes
Effective September 26, 2024, the following new regulations will affect specific Labour Market Impact Assessment (LMIA) applications for low-wage positions
Low-Wage Positions Above the 10% Cap
LMIA applications for low-wage positions will not be processed if the employer exceeds a 10% cap on the proportion of low-wage TFWs at the same work location.
Low-Wage Positions Above the 20% Cap
For certain sectors and occupations, LMIA applications will not be processed if the employer exceeds a 20% cap on low-wage TFWs. This applies to the following industries and job classifications:
- NAICS 23 – Construction positions
- NAICS 311 – Food manufacturing positions
- NAICS 622 – Hospital positions
- NAICS 623 – Nursing and residential care facilities
- NAICS 61 – Educational services
- NAICS 62 – Healthcare and social assistance, including specific caregiving roles under:
- NOC 31301 – Registered nurses and psychiatric nurses
- NOC 32101 – Licensed practical nurses
- NOC 44100 – Home childcare providers
- NOC 44101 – Attendants for persons with disabilities, home support workers, live-in caregivers, personal care attendants
An exemption applies to all in-home caregivers, though Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC) are reviewing their inclusion in future measures.
Low-Wage Positions in Location with Unemployment Rates of 6% or Higher
LMIA applications for positions offering wages below the provincial or territorial median hourly wage and located in Census Metropolitan Areas (CMAs) with an unemployment rate of 6% or higher will not be processed as of September 26, 2024.
Review this table to determine the current unemployment rates based on location.
Duration of Employment
The maximum duration of employment for low-wage positions is reduced from two years to one year under these new LMIA rules.
Exceptions for Key Sectors
Certain sectors, such as food security (including primary agriculture, food processing and fish processing), as well as construction and healthcare, will have exceptions that allow for more flexibility in hiring low-wage workers.
Positions in support of permanent residency only (no application for work permit).
Conclusion
The new LMIA rules in Canada will impact all low-wage positions due to the recent changes, not just those under the low-wage stream. While dual intent applications will be affected, applications for permanent residency that support LMIA will continue to be processed as before. Employers and applicants should stay informed about these changes to manage the application process effectively.
Examine the ‘Refusal to Process LMIA Applications‘ section from EDSC for comprehensive details on the reasons an application for a Labour Market Impact Assessment (LMIA) may be denied
