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Immigration Column
The Changes in LMIA and Their Impact and Expectations
In recent years, the number of permanent residency approvals in Canada has significantly increased, with an expected 500,000 approvals per year by 2025-2026.
During the pandemic, the LMIA process was not thoroughly conducted, and even after the labor market stabilized, simplified reviews continued.
Starting September 26, new LMIA changes will be implemented, preventing Low wage LMIA applications in areas with an unemployment rate above 6%.
The changes in LMIA policy are influenced by political and economic factors, with the Trudeau government adjusting policies in response to public concerns.
In recent years, the number of permanent residency approvals in Canada has significantly increased under the Liberal government. While 296,000 individuals obtained permanent residency in 2016, this number surged to approximately 470,000 in 2023, and it is expected to reach 480,000 in 2024 and about 500,000 per year by 2025 and 2026. Additionally, during the early stages of the pandemic, the LMIA process was not thoroughly conducted due to a severe labor shortage, leading to many approvals without proper interviews. Even after the labor market stabilized, the simplified LMIA process continued, resulting in a record number of LMIAs being issued last year.
Moreover, the pandemic's impact on international students has led to a significant influx of students into Canada, exacerbating housing costs and straining social infrastructure in major cities. As anti-immigration sentiment rises, the government, with an eye on the upcoming election, has begun rolling back temporary measures and tightening LMIA reviews, taking unemployment rates into account.
On August 6, the Canadian government announced upcoming changes to the LMIA program, sparking considerable interest. Finally, on August 26, detailed amendments were revealed, set to take effect on September 26. This article will delve into these changes and their potential impact.
An LMIA (Labor Market Impact Assessment) is a process through which Canadian employers receive approval from the labor department to hire foreign workers, ensuring that the hiring will not negatively impact Canadian workers' job opportunities. LMIAs are divided into six streams: Agricultural Stream, In-Home Caregiver, Academics, Global Talent Stream, High or Low wage positions, and Express Entry (permanent residence). Low wage LMIAs are for jobs offering wages below the median wage set by each province, limiting the number of foreign workers to 20% of the total workforce. High wage LMIAs, on the other hand, have no such cap for jobs offering wages above the median. Express Entry LMIAs allow employers to hire skilled workers regardless of wage.
The policy changes are the result of both political and economic considerations. The Trudeau government faces the challenge of addressing concerns that the current immigration pace is unsustainable, while also ensuring that changes do not harm economic growth or Canada's global standing. Currently, the Liberal Party is trailing behind the Conservative Party by 15-20% in polls. Adjusting immigration policy can be seen as an effort to address voter concerns and regain political support.
Canada's immigration policy has often been criticized for its lack of systematic planning. New policies are frequently rolled out without adequately addressing potential issues, leading to hurried revisions. While preventive measures could have been taken earlier, delays often result in significant modifications being made at a later stage. The lack of proactive planning has contributed to these challenges. Despite these issues, Canada’s overall immigration strategy continues to focus on expansion, with any negative trends typically lasting no more than six months to a year.
Although the August 6 announcement introduced more extreme measures, the final version announced on August 26 is less stringent, excluding Express Entry LMIAs. If the foreign-to-domestic worker ratio had applied to all LMIA categories, many businesses, especially in remote areas, would have faced operational difficulties. For instance, Korean restaurants often rely on foreign workers for 50-80% of their staff, and businesses in rural areas heavily depend on foreign labor.
Thus, while the recent announcement is less severe than anticipated, caution is still advised. There is a possibility of further changes after the 90-day review period, so those currently residing in Canada and seeking visa extensions should consider applying as soon as possible to minimize risk. Even though temporary challenges may arise, it is important to stay informed and seize opportunities as they arise. These difficulties will pass, and better opportunities are sure to come.
