Comparing permanent resident LMIA with high-wage and low-wage options
Canadian employers usually need to apply for an LMIA when hiring foreign nationals. LMIA stands for Labour Market Impact Assessment. A positive LMIA means hiring a foreign national has no negative impact on the Canadian job market. We could divide LMIAs into several groups. This article compares the permanent resident LMIA with high-wage and low-wage options. Of course, these three are probably the most popular LMIA types.
Table of contents
What are high-wage or low-wage LMIAs?
These two LMIAs are for those who intend to work in Canada with a work permit. However, they do not qualify for better alternatives such as,
- working in Canada without a permit,
- working in Canada without an LMIA, or
- less complex options such as the Global Talent Stream.
Among the two options, the process for high-wage LMIA is more straightforward. I prefer not to go into the details. Nonetheless, you may read my other article on this subject:
What is a permanent resident LMIA (PR LMIA)?
Before comparing a permanent resident LMIA with high-wage and low-wage options, let’s define it. Sometimes, you receive a job offer from a Canadian employer. However, you may work in Canada only if you become a permanent resident. You usually need to apply for a permanent resident LMIA in this situation. A job offer backed with a PR LMIA could boost your FSWC and Express Entry scores. Therefore, many PR applicants seek a PR LMIA to validate their job offers. Of course, you may consider reading my other article on job offers.
Permanent resident LMIA vs. high-wage LMIA
The process and requirements of a PR LMIA are, for the most part, the same as those of a high-wage LMIA. However, there are some differences. The following table only reflects the differences.
| Issue | PR LMIA for high-wage positions | Regular high-wage LMIA | PR LMIA that will also support a work permit (Dual-intent PR LMIA) |
| Processing fee | $0 | $1000 (exceptions exist) | $1000 (exceptions exist) |
| Using the LMIA for a work permit application | Not possible | Possible | Possible |
| Transition plan | No | Yes, it is a must | Since September 26, 2024, it is a must. |
| Using it for boosting the PR application score | Yes, however, you must have a PR-specific* job offer. | Yes, however, you must have a PR-specific* job offer. | Yes, however, you must have a PR-specific* job offer. |
*A PR-specific job offer means the employer is willing to hire you for at least one year after becoming a PR.
Permanent resident LMIA vs. low-wage LMIA
The process and requirements of a PR LMIA are, for the most part, the same as those of a low-wage LMIA. However, there are some differences. The following table only reflects the differences.
| Issue | PR LMIA for low-wage positions (high-skilled) | Regular low-wage LMIA | Dual-intent low-wage LMIA for high-skilled jobs (i.e., but for PR and work permit) |
| Processing fee | $0 | $1000 (exceptions exist) | $1000 (exceptions exist) |
| Using the LMIA for a work permit application | Not possible | Possible | Possible |
| Cap on the number of employees | Since September 26, 2024, yes. | Generally speaking, the cap is 10%, but exceptions exist. | Since September 26, 2024, yes. |
| Using it for boosting the PR application score | Yes, however, you must have a PR-specific job offer, and the job must be NOC TEER 0,1, 2, or 3. | Yes, however, you must have a PR-specific job offer, and the job must be NOC TEER 0,1, 2, or 3. | Yes, however, you must have a PR-specific job offer, and the job must be NOC TEER 0,1, 2, or 3. |
| Transportation, housing, healthcare, and contract? | Not applicable | Applicable | Applicable |
*A PR-specific job offer means the employer is willing to hire you for at least one year after becoming a PR.
Significant temporary changes to the LMIA program
Starting from April 30, 2022, some temporary changes will affect the LMIA program, namely:
- Labour Market Impact Assessments (LMIAs) will be valid for 18 months, up from nine. LMIA is a document that an employer in Canada may need to get before hiring a foreign worker. Before the pandemic, LMIAs were only valid for six months.
- Further, the maximum duration of employment for High-Wage and Global Talent Stream workers will be extended from 2 years to 3. This extension will help workers qualify for more pathways to permanent residency. Of course, they will also be contributing to the Canadian workforce in the long term.
- Also, there will no longer be a limit to the number of low-wage positions that employers in seasonal industries (fish, seafood processing) can fill through the TFW Program. Moreover, the maximum duration of these positions will be increased from 180 days to 270 days per year.
- …
These changes are temporary because of the labour shortages in 2022. Moreover, you could read our news article about this subject:
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Al Parsai, LLM, MA, RCIC-IRB
Regulated Canadian Immigration Consultant
Adjunct Professor, Queen’s University Faculty of Law
Instructor, Ashton College, Immigration Consulting Program
Author of 88 Tips on Immigration to Canada and Inadmissibility to Canada for Human Rights Violations
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