Hello, this is NohProblem Consulting.
Today, we would like to go over the updated information regarding the suspension of low-wage LMIA, which was announced on September 26th, along with some details that we confirmed through a conversation with Service Canada.
Shall we take a closer look at the specifics?
On August 26th, the Canadian government announced that starting today (September 26th), they will no longer process Labour Market Impact Assessments (LMIAs) under the low-wage stream of the Temporary Foreign Worker Program (TFWP) in certain Census Metropolitan Areas (CMA).
The government has provided the following updates:
- LMIA applications for low-wage positions in CMA regions where the unemployment rate is above 6% will no longer be processed.
- The current 20% cap on low-wage positions in certain sectors will be reduced to 10%.
- The cap on low-wage positions in the construction and healthcare sectors will be reduced to 20%.
- The maximum employment period for low-wage positions will be reduced from 2 years to 1 year.
In the update from August 26th, it was mentioned that LMIAs for PR (Dual-Intent) were not included. However, today, after an urgent call with Service Canada regarding the new updates, we have confirmed that PR Dual-Intent LMIAs are now also affected by these changes.
The news of PR LMIA (PR Dual Intent) being affected by these changes is not welcoming. Those who were previously working under LMIA or came through PGWP will no longer be able to extend their permits, which is unfortunate at this point.
However, at NohProblem, we would like to offer some solutions that we can suggest under the current circumstances:
- Finding Employers Who Have Not Previously Applied for LMIA
(Employers who do not exceed the 10% or 20% cap for foreign workers compared to their current employees) - Receiving a Job Offer Above the Median Wage (For Applicants) or Hiring Above the Median Wage (For Employers)
(Refer to the table below and ensure that the job offer you receive or extend is above the median wage for your region) - Utilizing Government Subsidies
For Early Childhood Educators (ECE) in British Columbia, applying government subsidies can increase wages to the high-wage category. With subsidies, the likelihood of exceeding the median wage of $28.83 in BC is higher, allowing you to meet the high-wage requirement. (For example, if an ECE in BC earns a base salary of $23 and an additional $6 subsidy is applied, it would be considered a high wage, and this position would not be affected by the new policy.) - Using Other PNP Streams for Employment
- Applying for Work Permits through Programs like Young Professionals or Working Holiday
- Obtaining a Work Permit through a Co-op Program
- Preparing LMIA Applications While Waiting for Regulations to Ease
These seem to be the best options at this point.
Next, let’s take a look at the regions with an unemployment rate of 6% and the positions selected under the low-wage stream from today’s update.
Suspension of Low-Wage LMIAs in Metropolitan Areas with Unemployment Rates Above 6%
First, let’s go over how to check if your area falls under the 6% unemployment rate.
- Enter your full postal code on the census website.
- On the results page, look at the third geographic level for either “Census Metropolitan Area” or “Census Agglomeration.”
– Census Agglomeration: If this is listed, your LMIA application will still be processed. - Census Metropolitan Area: Refer to the table below to find the unemployment rate for your CMA. If the unemployment rate is 6% or higher, your application may not be processed. If no information is shown for the postal code you entered, your LMIA application will be processed.
As of September 26th, the cities with unemployment rates of 6% or higher are as follows:
◾ St. John’s, Newfoundland and Labrador
◾ Halifax, Nova Scotia
◾ Saint John, New Brunswick
◾ Trois-Rivières, Quebec
◾ Montréal, Quebec
◾ Ottawa-Gatineau
◾ Kingston, Ontario
◾ Oshawa, Ontario
◾ Toronto, Ontario
◾ Hamilton, Ontario
◾ St. Catharines-Niagara, Ontario
◾ Kitchener-Cambridge-Waterloo, Ontario
◾ Brantford, Ontario
◾ London, Ontario
◾ Windsor, Ontario
◾ Barrie, Ontario
◾ Greater Sudbury, Ontario
◾ Winnipeg, Manitoba
◾ Regina, Saskatchewan
◾ Calgary, Alberta
◾ Edmonton, Alberta
◾ Abbotsford-Mission, British Columbia
◾ Vancouver, British Columbia
The unemployment rates are updated every quarter. Please refer to the following months for updates:
– April-June / July-September / October-December / January-March
Low-Wage Positions Not Processed If the 20% Cap is Exceeded
For the following occupations, if the 20% cap for the proportion of low-wage Temporary Foreign Workers (TFWs) is exceeded, LMIA applications will not be processed.
- NAICS 23 – Positions in the construction sector
- NAICS 311 – Positions in the food manufacturing sector
- NAICS 622 – Positions in the hospital sector
- NAICS 623 – Positions in nursing and residential care facilities
- NAICS 61 – Positions in education services and
- NAICS 62 – Positions in healthcare and social assistance
Additionally, for the following National Occupation Classification (NOC) codes:
- NOC 31301 – Registered nurses or registered psychiatric nurses
- NOC 32101 – Licensed practical nurses
- NOC 44100 – Home childcare providers
- NOC 44101 – Disability assistants, home support workers, live-in caregivers, personal care attendants (excluding home caregivers)
Moreover, if an application was canceled in the past two years due to providing false, misleading, or inaccurate information, LMIA applications for all positions may be rejected.
