‘This measure is expected to remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity,’ minister said
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Quietly included in a series of announcements about strengthening Canada’s border security and immigration system was news of proposed changes to the competitive point system that gauges a prospective immigrant for residency.
During a press conference in Ottawa, Immigration Minister Marc Miller revealed that candidates with a job offer backed by a federally-approved Labour Market Impact Assessment (LMIA) would no longer receive additional ranking points in their Express Entry System applications.
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The move was not included in the government’s press release listing other immigration changes, which included efforts to end “flagpoling” and giving Immigration, Refugees and Citizenship Canada more authoritative power over immigration documents when it comes to cases of fraud or security risks.
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What did Marc Miller say?
With Finance and Intergovernmental Affairs Minister Dominic Leblanc and Mental Health and Addictions Minister Ya’ara Saks on either side, Miller said the measures are meant to “reinforce program integrity and reduce potential LMIA fraud.”
“This measure is expected to remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity in the express entry system and taking some of the value out of the fraud already being perpetrated in the LMIA system.”
No timeline was offered for when the changes would be implemented.
What is an LMIA?
If an employer wants to hire a foreign worker in Canada, they’ll need to first complete an LMIA application for the federal government and receive a positive response confirming there are no Canadians or other permanent residents to do the job.
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Once approved, the prospective worker will need the LMIA, a job offer and a contract to apply for a work permit.
In August, Randy Boissonault, then minister of Employment and Social Development Canada (ESDC), announced measures to reduce the use of temporary foreign workers (TFWs). Government would begin “applying a stricter and more rigorous oversight in high-risk areas” during LMIA processing and inspections.
It was also weighing a fee increase “for additional integrity and processing activities.” Businesses currently pay $1,000 per application.
Later in the month, Boissonault announced Canada would begin refusing to process LMIAs in the temporary foreign worker low-wage stream for major cities with unemployment over six per cent. The move excludes seasonal and non-seasonal jobs in food sectors, as well as construction and health care.
Canada’s current overall unemployment rate is 6.8 per cent.
LMIAs were first introduced in 2014 as part of reforms to the TFW program under the Stephen Harper administration, which viewed it “as a last and limited resort to fill acute labour shortages on a temporary basis when qualified Canadians are not available.”
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According to ESDC, Canada approved 54,879 LMIAs in the second quarter of 2024 — over 10,000 more than the same period last year. Most of the employment consisted of work in food service, transportation and construction.
How is an LMIA used?
The Express Entry System is the online application portal that governs the federal skilled worker and trades programs, as well as the Canadian experience class — skilled workers who have Canadian work experience and want to become permanent residents.
Applicants are awarded points under the Comprehensive Ranking System (CRS) for education level, work experience, age, English and French capacity and other factors.
The maximum a prospective immigrant can score and increase their chances of becoming permanent is 1,200 points.
Before Tuesday’s announcement, a job offer backed by an LMIA would award them 50 points, or 200 if it’s a more senior, higher-paying position.
A provincial nomination, acquired through a separate application process, grants an additional 600 points.
Why are these changes being implemented?
Like Boissonault’s, Tuesday’s proposed change aims to reduce fraud and misuse of the TFW program.
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As reported by the Financial Post and multiple other media outlets, some employers and some immigration agents exploit the system by illegally selling LMIAs to prospective immigrants or those already here looking to boost their CRS score in hopes of permanent residency.
The asking price could be anywhere from $10,000 to $30,000, but immigration consultant Kanwar Sierah told the Financial Post he’s “heard of LMIAs being sold for $70,000.”
Bloomberg reported that a government-commissioned investigation it viewed found some people were being charged up to $180,000.
Under the Immigration and Refugee Protection Act, “No person shall … import, export or deal in such a document.”
“Bad actors are taking advantage of people and compromising the program for legitimate businesses,” Boissonault said in August.
What else did Miller announce?
Canada will also tackle so-called “flagpoling” by no longer allowing temporary residents to leave Canada and immediately return so they can avail of quicker immigration services, which government says drains resources at the border, distracts officers from enforcement activities, and slows traffic.
Ottawa also wants to amend the Act to make it easier for immigration documents or applications to be cancelled, changed, suspended or refused.
“These authorities could also help prevent those who may pose a risk to Canada from entering the country and prevent further southbound irregular migration,” government stated.
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