Canada changes rules for LMIAs, permanent residency

Latest move from Ottawa meant to 'reinforce program integrity' and cut down on fraudulent activity

Canada changes rules for LMIAs, permanent residency

Canadian immigration authorities plan to eliminate the advantage of job offers supported by Labour Market Impact Assessments (LMIA) in applications for permanent residency (PR), aiming to curb fraudulent practices.  

Immigration Minister Marc Miller announced the proposed changes during a press conference in Ottawa on Tuesday 

Miller stated that the government intends to introduce measures to “reinforce program integrity and reduce LMIA fraud, such as removing additional points that candidates receive for Express Entry for having a job offer,” according to the Hindustan Times. 

Currently, applicants for PR under Canada’s Express Entry system receive a minimum of 50 points for having an LMIA-supported job offer, significantly improving their chances of selection. Removing these points is expected to “remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity in the system,” Miller explained. 

According to reports, LMIA approvals rose to 71,300 in the first quarter of 2024, compared to 63,300 during the same period in 2023. The government has yet to specify a timeline for implementing these changes. 

Addressing fraud in immigration

The decision follows reports of fraudulent activities involving LMIAs, says the Hindustan Times. Allegations include immigration agents working with employers to issue LMIAs in exchange for payments ranging from CA$10,000 to CA$75,000.  

Once obtained, a “positive” LMIA can be used by prospective employees to secure a work permit or bolster their PR applications under the Express Entry system

The Express Entry system, managed by Immigration, Refugees and Citizenship Canada (IRCC), processes applications for skilled immigration through the Canadian Experience Class, Federal Skilled Worker Program, and Federal Skilled Trades Program. 

Canadian employers’ use of “unlimited” cheap labour could be coming to an end as the federal government looks to crack down on “exploitative” conditions within the immigration process, said Miller in November, as the federal government is intensifying efforts to reform Canada’s reliance on low-wage foreign labour. 

‘Improve the screening’

The announcement has drawn mixed reactions. Naresh Chavda, president of Globayan Immigration Corporation, acknowledged the move could reduce LMIA fraud but expressed concerns about its potential impact on skilled workers and their employers.  

“The government needs to improve the screening process and other measures, not cut the LMIA category for Express Entry fully,” he told Hindustan Times

Immigration analyst Darshan Maharaja noted that the “sale” of LMIAs is openly advertised on social media and distorts labour markets. While he supported the removal of LMIA points as a step toward addressing these issues, he cautioned, “The enormity of this damage is such that it would be prudent to keep expectations in check.” 

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