In 2023, employers in Western Canada are increasingly seeking overseas skilled workers, as evidenced by a significant uptick in the number of Labour Market Impact Assessment (LMIA) applications. Recent statistics from Employment and Social Development Canada reveal a notable 39% nationwide increase in LMIA applications compared to the same period in 2022, up to November 5.
Regional Dynamics and Emerging Trends
Western Canada has experienced a robust 83% surge in LMIA applications, showcasing a growing demand for skilled workers. However, Yukon stands out as the lone province/territory with a slight decrease in applications this year, as reported by CBC News’ Madeleine Cummings.
Nunavut leads in the year-over-year percentage difference for LMIA applications, with an impressive 535.7 increase. Following closely are Northwest Territories (115.6), Manitoba (103.3), and Saskatchewan (103.2). Conversely, Yukon showed a -0.9 year-over-year percentage difference, while Prince Edward Island exhibited a modest increase of 6.5.
Despite the increasing demand, LMIA processing times have been sluggish, with Alberta having the lengthiest average processing time in Canada, according to federal data. This is attributed to the province having a smaller share of applications in priority processing streams. The average year-to-date processing time for LMIA (in business days) is highest in Manitoba (53 days), NWT (50.3 days), and Saskatchewan (46.7 days), following Alberta.
Recognized Employer Pilot (REP)
In response to the challenges faced, efforts to modernize the Temporary Foreign Worker (TFW) program have been initiated since 2022. Notable initiatives include the distribution of files across the national network and a transition away from paper applications, reducing data-entry work for Service Canada.
A pivotal development is the introduction of the Recognized Employer Pilot (REP), a three-year initiative offering a streamlined approach for employers who regularly access the TFWP to fill in-demand positions from the REP occupations list. Recognized employers meeting the highest standards for working and living conditions can enjoy validity periods of up to 36 months for positive LMIA decisions, coupled with simplified LMIA applications for hiring additional workers.
REP aims to uphold existing worker protections while providing simpler and more predictable access to labor for employers, along with increased flexibility for the Canada labor market. Service Canada conducts a rigorous upfront assessment of an employer’s LMIA application to determine REP eligibility.
Employers may qualify if they have received at least three positive LMIA decisions in the past five years for positions on the REP occupations list, meet the highest working condition, living condition, and worker protection standards, and agree to adhere to regular TFWP requirements.
REP operates in two phases, with applications for Phase 1 occupations starting in September 2023, and Phase 2 applications commencing in January 2023. Although Service Canada will stop accepting REP applications in September 2024, enrolled employers can continue submitting requests for positions on the REP occupations list using a simplified LMIA.
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