Effective May 1, 2024, Canada implemented significant changes to the Labour Market Impact Assessment (LMIA) process. One of the most notable changes is the reduction of LMIA validity from twelve months to six months, creating a narrower window for employers to hire foreign workers and apply for work permits.

These changes are part of a broader effort to ensure that Canada’s labor market needs are met more precisely. For example, industries like construction and healthcare remain exempt from some of these changes due to ongoing labor shortages. However, other sectors must now adhere to stricter rules, such as reducing the percentage of their workforce that can enter under the low-wage stream from 30% to 20%.

Employers are now required to explore all available options, including hiring asylum seekers with valid work permits, before requesting an LMIA. This new requirement underscores Canada’s commitment to integrating asylum seekers into the labor market and ensuring that employers exhaust all domestic options before turning to foreign workers.

These changes may pose challenges for employers and foreign workers alike, making it essential for both parties to understand the new regulations and prepare accordingly. Staying up-to-date with these developments will be key to navigating the Canadian labor market in the coming years.