LMIA Low-Wage Stream: Benefits for Canadian Employers

When Canadian employers face labour shortages and struggle to hire from the Canadian labour market, the Labour Market Impact Assessment (LMIA) under the Low-Wage Stream of the Temporary Foreign Worker Program (TFWP), managed by Employment and Social Development Canada (ESDC), offers a solution. This guide explores the LMIA Low-Wage Stream, its requirements, and how employers in Canada, including those in British Columbia, can hire a temporary foreign worker to fill job vacancies.

What is the LMIA Low-Wage Stream?

The LMIA Low-Wage Stream allows Canadian employers to obtain a positive LMIA to hire temporary foreign workers for job offers paying below the provincial or territorial median hourly wage. Unlike the High-Wage Stream, which applies to jobs at or above the median wage, the Low-Wage Stream addresses labour shortages in lower-wage positions. Other TFWP streams include primary agriculture, caregiver, and permanent residency support, but the LMIA Canada process for low-wage roles is a common choice for employers.

Median wage data is available on the Government of Canada’s ESDC website: Median Wage Information.

For example, as of April 2024, British Columbia’s median hourly wage is $28.85, and Ontario’s is $28.39. A job offer in British Columbia below $28.85/hour falls under the LMIA Low-Wage Stream British Columbia, while higher wages qualify for the High-Wage Stream.

Low-Wage Stream Requirements

To apply for an LMIA Low-Wage Stream, employers must meet strict criteria set by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC). Key requirements include:

1. Cap on Temporary Foreign Workers

A Canadian employer is limited to a 10% cap on temporary foreign workers in low-wage positions, calculated based on the total workforce. For specific industries like construction, food manufacturing, healthcare, or caregiving, the cap is 20%. Employers with fewer than 10 employees can hire one low-wage foreign worker to fill a position (or two for 20% cap industries). The cap calculation can be complex, so consulting an immigration professional is advised.

2. Recruitment Requirements

Before applying for an LMIA Canada, employers must demonstrate efforts to recruit Canadian citizens or permanent residents. Low-Wage Stream requirements include:

• Advertising the job offer on Service Canada’s Job Bank and two additional platforms targeting underrepresented groups (e.g., Indigenous peoples, vulnerable youth, people with disabilities, newcomers, or asylum seekers with valid work permits).
• Using at least three distinct recruitment methods, such as employment websites, job fairs, or partnerships with training institutions.
• Running ads for at least four consecutive weeks within three months before the LMIA application, with one method ongoing until a decision is made.
• Including specific job details as outlined by ESDC.

Primary agriculture roles are exempt from recruitment requirements. Non-compliant ads may delay the process, so employers should follow ESDC guidelines closely.

3. Employer Obligations

To hire a temporary foreign worker, employers must cover:

• Transportation: Round-trip travel costs from the worker’s home country.
• Housing: Suitable and affordable housing (costing less than 30% of pre-tax income).
• Health Insurance: Private coverage for emergency medical care until provincial coverage applies.
• Workplace Safety Insurance: Coverage through provincial/territorial providers or equivalent private plans.

These costs cannot be recovered from the worker. Employers near the median wage may consider raising the job offer wage to qualify for the High-Wage Stream, avoiding some requirements.

Recent Changes to the LMIA Low-Wage Stream (September 2024)

As of September 26, 2024, Social Development Canada ESDC introduced updates to address unemployment rates and program sustainability:

• The 20% cap for most industries dropped to 10%, except for agriculture, construction, food manufacturing, healthcare, and caregiving.
• LMIA Low-Wage Stream applications are not accepted in Census Metropolitan Areas (CMAs) with unemployment rates of 6% or higher, except for exempt industries.
• The maximum employment duration for low-wage positions is now one year, down from two, impacting work permit durations.

How to Apply for LMIA Low-Wage Stream

To apply for LMIA Low-Wage Stream, employers should:

1. Verify the job offer wage against the provincial median wage.
2. Conduct required recruitment activities per ESDC guidelines.
3. Gather documentation on workforce size, cap compliance, and worker support (housing, insurance, etc.).
4. Submit the LMIA application through Service Canada, ensuring compliance with Citizenship Canada IRCC standards.
5. Consider consulting an immigration lawyer to navigate complexities and avoid delays.

Why Choose the LMIA Low-Wage Stream?

For employers in Canada facing labour shortages, the LMIA Low-Wage Stream enables hiring temporary foreign workers to fill critical roles. By meeting Low-Wage Stream requirements, an employer to hire can secure a positive LMIA, supporting business needs while complying with Government of Canada regulations. For LMIA Low-Wage Stream British Columbia applications, understanding local wage thresholds and unemployment rates is key.

Given the complexities of the Temporary Foreign Worker Program Canada, professional guidance ensures that an employer in Canada can efficiently hire a temporary foreign worker without delays.