Business / How Canada’s LMIA Shakeup (Effective Sep 26, 2024) Impacts South Asians Hoping To Get A Canadian Work Visa

How Canada’s LMIA Shakeup (Effective Sep 26, 2024) Impacts South Asians Hoping To Get A Canadian Work Visa

Business Sep 27, 2024

by Tushar Unadkat | Features Editor - Business

Starting on September 26, 2024, significant changes are coming to Canada’s Labour Market Impact Assessment (LMIA) process, particularly impacting the Temporary Foreign Worker (TFW) Program. These changes are particularly significant for South Asian immigrants seeking employment and permanent residency in Canada.

The Labour Market Impact Assessment (LMIA) is a document Canadian employers may need to obtain before hiring a foreign worker. It assesses the likely impact of hiring a foreign worker on the Canadian labor market.

In the past, South Asian immigrants have benefited from the LMIA process as it provided them with opportunities to secure employment in Canada, particularly in low-wage positions that may have been difficult to fill with Canadian workers. According to statistics, South Asian immigrants have historically been among the top recipients of LMIA-based work permits in Canada. For example, in recent years, a significant percentage of LMIA approvals have been for workers from South Asian countries such as India, Pakistan, Bangladesh, and Sri Lanka. This approval has allowed many South Asian immigrants to gain valuable work experience in Canada and has served as a pathway for them to pursue permanent residency in the country.

The changes to the LMIA process impact agricultural workers in several ways. On the one hand, the new regulations may make it more challenging for employers to hire temporary foreign workers for low-wage farm positions, as the maximum duration of employment through the low-wage stream has been reduced from two years to one year. However, there are exceptions for critical sectors like agriculture, which provides some hope for those in this field. Additionally, under the Provincial Nominee Programs (PNPs), some provinces may still offer pathways for agricultural workers in demand, making it a potential alternative for those seeking immigration options.

These changes focus on reducing reliance on temporary foreign workers in low-wage positions. Here are the main updates:

Suspension of LMIA Applications in High-Unemployment Areas: The Canadian government will no longer process LMIA applications for low-wage roles in areas with an unemployment rate of 6% or higher. This measure prioritizes Canadian workers for available jobs.
Reduction of Foreign Workers in Low-Wage Stream: The new restriction limits employers to hiring no more than 10% of their workforce from the TFW Program, a decrease from the previous cap of 20%. This change will mainly affect low-wage positions in census metropolitan areas.
Shorter Employment Duration: The new regulation will reduce the maximum duration of employment for those hired through the low-wage stream from two years to one year. However, exceptions exist for critical sectors like agriculture, food processing, construction, and healthcare, providing hope for those in these fields.

A few examples of the low-wage jobs impacted by this are:

Retail sales associates
Food service workers
Cleaners
Caregivers
Agriculture (exceptions exist)

These changes present significant challenges for South Asian immigrants, particularly those on visit visas looking to convert them to work visas through the LMIA. The new rules make it harder to secure low-wage jobs, which many immigrants use as a pathway to gain work experience and eventually transition to permanent residency.

More Accessible Immigration Options for South Asians: Given these changes, South Asian immigrants must explore alternative immigration options. Here are some potential pathways that offer hope and promise:

Provincial Nominee Programs (PNPs): Some provinces may offer pathways that are less affected by these changes. Programs like Ontario’s PNP target specific occupations in demand, making it a viable alternative.
Express Entry: Candidates with higher education and work experience, particularly in high-demand fields like IT, healthcare, or skilled trades, can still use the Express Entry system to apply for permanent residency.
Post-Graduation Work Permits: South Asian students studying in Canada can transition to work permits after completing their studies, which may provide an easier route to permanent residency than LMIA-dependent work visas.

Some of the jobs/professions that are in demand under the Provincial Nominee Programs (PNPs) include:

Information Technology (IT) professionals
Healthcare workers (nurses, doctors, therapists)
Skilled tradespeople (electricians, plumbers, carpenters)
Engineers
Financial analysts
Teachers and educators
Agricultural workers

These changes are part of the government’s broader initiative to address domestic unemployment and reduce the use of temporary foreign workers for low-wage roles. The goal is to create a more balanced and equitable labor market for all stakeholders, including South Asian immigrants seeking employment and permanent residency in Canada.

Ref: Immigration News Canada, Mathews Dinsdale & Clark LLP.

Feature Image: @DALL·E AI-Generated

Tushar Unadkat | Features Editor - Business

Author

Internationally celebrated, award-winning media personality and author of several business and lifestyle articles, Tushar Unadkat, is the CEO, Creative Director of MUKTA Advertising, Founder, and Executive Director of Nouveau iDEA, Canada. He holds a Master of Design from the University of Dundee, S...

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