LMIA for Sale: blackmarket for Illegal Jobs in Canada

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to obtain before hiring a foreign worker.

"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." (IRCC Canada)

Historically, LMIA allowed foreign workers to work in Canada and employers to hire specific foreign nations to fill the skills gap due to local talent unavailability.

LMIA is considered one of the most successful immigration policies, which helped to boost the inflow of skilled immigrants in Canada. But recently, LMIA has been used as a backdoor to scam the immigration system either to enter Canada in a fraudulent manner or to extend the stay in Canada.

Historically, LMIA has been provided to foreign nationals by Canadian employers who are highly skilled in areas such as science, health care, trades, medicine, engineering, commerce, etc. However, more recently, an overwhelming number of LMIA letters have been offered to foreign nationals who work in areas such as fast food, retail, and other low-skilled minimum-wage jobs. Which completely defies the purpose of LMIA.

Foreign nationals demonstrating the required skills are supposed to get LMIA from their employers free of cost if the employers decide to hire them. However, according to CBC News, some employers are 'selling' LMIA letters to desperate temporary foreign nations and international students for as high as $30,000.

"It's illegal to charge for an LMIA under Canadian immigration laws. The government fee for an LMIA application ($1,000) should be fully covered by the employer who is facing a labour shortage." (CBC News)

Having an LMIA can add 50 points to one's permanent residency profile, making it lucrative for temporary foreign workers and international students who are seeking permanent residence in Canada. And some employers are taking advantage of these temporary foreign workers and international students by 'selling' them LMIAs.

Even though selling LMIAs is illegal and against the law, some people openly advertise LMIAs on Facebook groups, Instagram reels, and YouTube videos. These videos and posts are publically available on the internet, and no action has been taken on them to date.

Apart from LMIA sales being illegal, LMIAs also become a 'tool' for exploitation and wage theft. Many businesses are deliberately set up to make money from the sale of LMIAs instead of actual business sales.

LMIAs are 'closed' work permits, which means the person possessing an LMIA can only work for the employer who issued the LMIA. Thus, those temporary foreign workers who 'buy' the LMIAs are paid severely below minimum wage.

A recent UN report also addresses how the temporary worker program became a breeding ground for modern slavery.

"Temporary Foreign Worker Program serves as a breeding ground for contemporary forms of slavery, as it institutionalizes asymmetries of power that favor employers and prevents workers from exercising their rights." (Tomoya Obokata, UN Report)

According to our sources, employers pay around $8-13/hr to their employees, which is clearly 'exploitation' and 'modern slavery.' While employers make roughly $30,000-$50,000 per LMIA letter.

LMIA, which once was provided to highly skilled foreign workers, is now distributed to low-skill/low-wage workers, which defies the purpose of LMIA. On top of that, it also enables some employers to exploit temporary foreign workers. Which also resulted in wage stagnation and massive unemployment among Canadians.