Author:Latest Government Announcement: Government Ends Additional Express Entry Points for LMIA-Backed Workers
Policy changes announced yesterday by the federal government have stirred discussions about Canada’s immigration landscape. In a bid to reinforce the integrity of the system and address concerns over fraud, the government has decided to stop awarding additional points under Express Entry for workers who have a Labour Market Impact Assessment (LMIA). This move is aimed at increasing fairness and tackling the issue of LMIA misuse. Here’s a closer look at what an LMIA is, its role in Canada’s immigration system, and how these changes may affect workers and employers.
What is an LMIA?
The Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that allows employers to hire foreign workers under Canada’s Temporary Foreign Worker Program (TFWP). The LMIA process is designed to ensure that hiring a foreign worker will not negatively impact the Canadian labour market. To obtain an LMIA, employers must demonstrate that they have made significant efforts to recruit Canadian citizens or permanent residents for the position and that no suitable candidates are available domestically.
Once an LMIA is approved, it is often used to support an immigration application, such as a work permit or Express Entry profile. Under the previous system, candidates with a valid LMIA-supported job offer were awarded additional points in the Comprehensive Ranking System (CRS) used for Express Entry, significantly improving their chances of receiving an Invitation to Apply (ITA) for permanent residency.
Why Were LMIA Points Removed from Express Entry?
The federal government’s decision to remove additional points for LMIA-supported job offers under Express Entry stems from concerns about potential fraud and misuse of the system. The announcement was made yesterday by Immigration minister Marc Miller and the move aims to “reduce the incentive for candidates to purchase an LMIA,” thereby promoting greater integrity and fairness within the immigration framework.
This change aligns with broader government efforts to address economic and social challenges, including rising unemployment and a housing crisis, which have amplified calls for more measured population growth. Statistics Canada recently reported the slowest quarterly population growth since early 2022, underscoring the urgency of balancing immigration levels with domestic capacity.
Implications for Workers
For foreign workers, the removal of LMIA points introduces new considerations:
- Reduced CRS Advantage: Without the additional points, LMIA-supported job offers no longer provide the competitive edge they once did in the Express Entry pool. Workers who relied on these points to secure permanent residency may need to explore alternative pathways or improve their CRS scores through other means, such as language proficiency or education.
- Increased Competition: The change levels the playing field for Express Entry candidates by focusing more on core human capital factors, such as age, education, and work experience, rather than the possession of an LMIA.
- Reliance on Employer Support: Workers with LMIA-supported job offers may still benefit from employer sponsorship, but their success will depend more heavily on meeting other eligibility criteria and standing out among a competitive pool of applicants.
Implications for Employers
Employers who depend on the Temporary Foreign Worker Program to address labour shortages may face new challenges:
- Attracting Talent: Without the added incentive of Express Entry points, employers may find it more difficult to attract foreign workers to positions requiring an LMIA.
- Program Integrity Requirements: The government’s focus on reducing LMIA fraud may result in stricter enforcement and compliance measures, increasing the burden on employers to demonstrate transparency and legitimacy in their hiring practices.
- Long-Term Solutions: Employers may need to explore alternative strategies, such as investing in training programs for local workers or leveraging provincial nominee programs (PNPs), which can still provide pathways to permanent residency.
Navigating the New Landscape
The decision to remove LMIA points marks a significant shift in Canada’s immigration policy. For workers and employers alike, understanding these changes and adapting to the evolving system will be crucial.
For workers, staying informed about other pathways to permanent residency—such as PNPs, family sponsorship, or additional studies—can help them achieve their immigration goals. Employers, on the other hand, must ensure compliance with LMIA requirements while seeking innovative solutions to meet labour demands.
As these policy changes take effect, Doherty Fultz Immigration is committed to supporting clients through personalized guidance and strategic planning. Whether you’re a worker aiming to navigate the Express Entry system or an employer looking to hire internationally, we’re here to help you succeed in the new immigration landscape.
