Canada to stop LMIA-based job offer points under Express Entry route: How will it impact Indians?

A Labour Market Impact Assessment is a document that an employer in Canada may need to get before hiring a foreign worker

The Canadian government has announced changes to the Express Entry immigration system. Candidates applying for permanent residency will no longer be awarded additional Comprehensive Ranking System (CRS) points for possessing a job offer supported by a Labour Market Impact Assessment (LMIA).

The announcement was made by Canada’s Immigration Minister Marc Miller.

“We are implementing further measures that will reinforce programme integrity and reduce potential LMIA fraud, such as removing additional points that candidates receive under Express Entry for having a job offer,” Miller said.

What is Labour Market Impact Assessment (LMIA)?

A Labour Market Impact Assessment is a document that an employer in Canada may need to get before hiring a foreign worker, according to the information available on Immigration, Refugees and Citizenship Canada (IRCC) site.

A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job. A positive LMIA is sometimes called a confirmation letter.

About 71,300 LMIAs were approved by the government in the first quarter this year, compared to 63,300 during the same period last year, according to a report by the Financial Post. Most applications were for farm workers, cooks, food-counter attendants, truck drivers and construction labourers.

According to Miller, the removal of LMIA-based job offer points aims to combat immigration fraud and enhance the system's integrity. “This measure is expected to remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity in the system,” he stated.

How does it work?

The Express Entry System is an online platform that manages applications for Canada's federal skilled worker program, federal skilled trades program, and Canadian experience class program.

Under the Comprehensive Ranking System (CRS), candidates receive points based on various factors including their education, work experience, age, and proficiency in English and French. The maximum possible CRS score is 1,200 points.

A job offer that is backed by an LMIA awards them 50 points, or 200 for a senior, higher-paying position.

How will this affect Indians?

According to Times of India, India has continued to be the top country for receiving invitations to apply for permanent residency under the Express Entry system.

Last year, nearly 52,100 Indians (47 per cent of the total invites) were invited to be permanent residents. This policy change, once implemented, could impact Indian nationals seeking permanent residency in Canada.

Provincial nominations, which provide 600 points under the CRS, may serve as an alternative pathway for candidates to increase their scores following the removal of LMIA-based points.

(With agencies inputs)