Starting September 26, 2024, certain the Labour Market Impact Assessment (LMIA) applications submitted for the low-wage stream will be affected by the following tightening measures by Government of Canada. Specifically, certain LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher will not be processed; the current 20% cap on the proportion of low-wage positions is being reduced to 10%; and the maximum employment duration for low-wage positions is being reduced from 2 years to 1 year
As a brief background, LMIA is a document issued by Employment and Social Development Canada (ESDC) that allows employers to hire foreign workers if they can demonstrate that there are no Canadian citizens or permanent residents available to fill the position. Depending on the nature of the job, LMIA applications can be divided into low-wage and high-wage categories, each with its own set of requirements and opportunities for obtaining permanent residency.
Understanding the Difference Between LMIA Low-Wage and High-Wage
Canada classifies job based on wages compared to the provincial or territorial median hourly wage. This classification impacts the LMIA process, and in turn, the immigration pathways available to foreign workers.
Path to Permanent Residency for Low-Wage Workers:
Workers can gain Canadian work experience and potentially qualify for programs like the Provincial Nominee Program (PNP) or Canadian Experience Class (CEC) after gaining sufficient work experience. Additionally, some provinces may prioritize certain low-wage occupations through their own PNP streams.
Path to Permanent Residency for High-Wage Workers:
For high-wage workers, the transition to permanent residency is often smoother and quicker. With their higher skill levels and professional experience, they can access immigration pathways such as:
Express Entry: High-wage foreign workers can qualify for permanent residency through the Express Entry system. Under this system, workers are evaluated based on factors such as age, education, work experience, and language proficiency. A valid job offer supported by an LMIA can significantly boost the worker’s chances of receiving an Invitation to Apply (ITA) for permanent residency.
Provincial Nominee Program (PNP): High-wage foreign workers can also be nominated by provinces or territories through the PNP, particularly if they meet local labor market needs. Many provinces have specific streams for skilled workers with valid job offers.
Conclusion: Choosing the Right Path for Your Career Goals
For employers and foreign workers alike, understanding the differences between LMIA low-wage and high-wage positions is crucial when planning for the future. Both categories offer opportunities, but they require different approaches when it comes to securing permanent residency. At NPZ Law Group, we can guide you through the LMIA process and help you strategize the best route to permanent residency based on your career goals.
Contact NPZ Law Group today to learn more about how we can assist you with your LMIA application and help you navigate the immigration system to secure your future in Canada.