Updated on January 8, 2025 by canadian immigration experts
The Canadian government has announced a pivotal shift in immigration policy—ending the allocation of additional Express Entry points for candidates with Labour Market Impact Assessment (LMIA)-supported job offers. This decision, aimed at safeguarding system integrity and curbing fraud, signals a new phase in Canada’s immigration landscape.
Here’s a comprehensive breakdown of what this change means for foreign workers, employers, and Express Entry applicants.
What is an LMIA?
A Labour Market Impact Assessment (LMIA) is a crucial document issued by Employment and Social Development Canada (ESDC) that authorizes employers to hire foreign workers through the Temporary Foreign Worker Program (TFWP).
Key Purposes of LMIA:
- Ensure hiring foreign workers will not negatively impact the Canadian labour market.
- Demonstrate that employers have actively tried to recruit Canadian citizens or permanent residents first.
A positive LMIA supports work permit applications and previously enhanced Express Entry profiles by awarding additional points under the Comprehensive Ranking System (CRS). This provided a substantial advantage in securing an Invitation to Apply (ITA) for permanent residency.
Why is the Government Removing LMIA Points from Express Entry?
Canada Immigration MinisterMarc Miller cited growing concerns about fraud, system misuse, and fairness as driving factors behind this policy shift.
Key Reasons for the Change:
- Preventing LMIA Misuse
The government aims to deter fraudulent purchases of LMIA-backed job offers. By removing point incentives, it reduces the attractiveness of “buying” LMIAs, which undermines the immigration process. - Restoring System Integrity
Shifting the focus toward human capital factors—such as age, education, work experience, and language skills—ensures that Express Entry prioritizes merit-based selection rather than reliance on employer endorsements. - Addressing Economic Challenges
With rising concerns about housing shortages, population growth, and unemployment, the government is balancing immigration intake to better align with domestic capacity.
Implications for Foreign Workers
The removal of LMIA points has immediate consequences for Express Entry candidates:
- Reduced CRS Advantage
Without LMIA-backed points, foreign workers lose a competitive edge in the Express Entry pool. Candidates must now improve scores through:
- Higher language test scores (IELTS/CELPIP)
- Advanced degrees or additional education
- Work experience in Canada (Canadian Experience Class)
- Increased Competition
The CRS now emphasizes core human capital factors, making it more competitive for workers who previously relied on job offers to boost their ranking. - Greater Reliance on PNPs and Employer Sponsorship
Workers should explore Provincial Nominee Programs (PNPs), which continue to provide strong pathways to permanent residency. Additionally, employer-driven streams may still offer options for permanent status.
Implications for Employers
Employers who depend on the Temporary Foreign Worker Program (TFWP) to address labour shortages must adjust to this policy shift:
- Recruitment Challenges
Without the incentive of additional Express Entry points, attracting skilled foreign workers may become more difficult, particularly for high-demand industries. - Stricter Compliance Measures
The government is intensifying scrutiny to combat LMIA fraud. Employers must ensure full transparency and compliance in LMIA applications to avoid penalties or rejections. - Exploring Alternative Hiring Channels
Employers may:
- Invest in training Canadian talent for hard-to-fill roles.
- Leverage PNPs, which allow provinces to nominate workers based on local labour market needs.
- Partner with educational institutions to recruit from the international student pool.
Navigating the Evolving Immigration System
For both workers and employers, adapting to these changes is essential to thrive in the new immigration environment.
For Workers:
- Boost CRS Scores through enhanced language skills, education, and Canadian work experience.
- Apply for PNPs or employer-driven pathways that align with long-term residency goals.
- Plan strategically—consult with immigration experts to explore alternative visa categories.
For Employers:
- Focus on domestic talent development through training and mentorship programs.
- Use provincial immigration pathways to secure long-term employee retention.
- Ensure LMIA compliance to avoid complications under stricter government enforcement.
Frequently Asked Questions (FAQ)
- Does the removal of LMIA points affect existing Express Entry applications?
No. This change applies to new applications moving forward. Existing applicants with LMIA points will not lose previously awarded CRS points.
- How can workers compensate for lost LMIA points?
Focus on improving language scores, pursuing advanced education, and obtaining Canadian work experience to enhance CRS rankings.
- Are LMIA-supported job offers still relevant?
Yes. An LMIA is still essential for work permits under the TFWP but no longer boosts Express Entry scores directly.
Conclusion: Adapting to Canada’s Immigration Policy Shift
Canada’s decision to remove LMIA-backed Express Entry points reflects its commitment to merit-based immigration and fairness. While this may present challenges, it also opens doors for candidates to showcase skills, education, and experience.
Employers and foreign workers must embrace new strategies to succeed in this evolving landscape. By staying informed and seeking expert advice, applicants can navigate the system confidently and maximize their chances of achieving permanent residency.
For personalized guidance on Express Entry, LMIA processes, or PNPs, contact Jane Katkova & Associates . With over 20 years of experience, Jane Katkova & Associates excels at helping clients navigate Canada’s immigration pathways. We’re dedicated to helping clients achieve their immigration goals in Canada’s dynamic environment.
