Commonwealth_ The Canadian government is taking significant steps to curb fraud related to Labour Market Impact Assessments (LMIAs) in its immigration system. Immigration Minister Marc Miller recently announced a proposal to eliminate the additional points granted to applicants for Express Entry if they possess a valid job offer backed by an LMIA. This measure aims to enhance the integrity of the immigration system by addressing fraudulent practices associated with LMIAs.
Under the current system, LMIAs play a crucial role in hiring foreign workers. Employers in Canada must obtain a positive LMIA before offering jobs to non-Canadian workers, signifying that hiring a foreign worker will not negatively affect the Canadian labor market. For individuals seeking permanent residency (PR), having a job offer supported by an LMIA can add at least 50 points to their Comprehensive Ranking System (CRS) score under the Express Entry system, significantly improving their chances of selection.
However, reports have surfaced about widespread abuse of the LMIA system. Unscrupulous immigration agents and employers have allegedly colluded to generate fraudulent LMIAs in exchange for hefty payments, ranging from CA$10,000 to CA$75,000. These fraudulent practices undermine the fairness of the immigration process and distort labor markets. The government’s decision to remove the additional CRS points for LMIAs is expected to reduce the incentive for such fraudulent activities.
Minister Miller emphasized that this initiative is part of a broader effort to reinforce program integrity and restore trust in the immigration system. “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 during a press conference in Ottawa. While details on the legislative changes and implementation timeline have not been provided, the announcement has sparked mixed reactions.
Naresh Chavda, president of Globayan Immigration Corporation, expressed cautious support for the proposal. He acknowledged that the move could help reduce LMIA fraud and align with the government’s goal of controlling immigration numbers. However, he voiced concerns about its potential impact on genuine LMIA-backed workers and their employers. Many high-skilled workers, or those with unique expertise in demand across Canada, rely on the LMIA pathway for entry, and this change could create challenges for businesses requiring such talent.
Chavda suggested that rather than completely eliminating the LMIA category for Express Entry, the government should focus on enhancing the screening process to identify and prevent fraudulent applications. Striking a balance between fraud prevention and maintaining a functional immigration system is critical for Canada’s economic growth and labor market stability.
Immigration analyst Darshan Maharaja also weighed in, highlighting the prevalence of LMIA “sales” blatantly advertised on social media. These fraudulent activities have distorted the labor market and tarnished the system’s credibility. Maharaja welcomed the government’s decision, viewing it as a step toward undoing the damage caused by LMIA abuse. However, he urged caution, stating, “The enormity of this damage is such that it would be prudent to keep expectations in check.”
The Express Entry system, managed by Immigration, Refugees and Citizenship Canada (IRCC), is an online platform for processing immigration applications from skilled workers. It encompasses three programs: the Canadian Experience Class, the Federal Skilled Worker Program, and the Federal Skilled Trades Program. In the first quarter of 2024 alone, nearly 71,300 LMIAs were approved, a significant increase from the 63,300 approved during the same period in 2023. These numbers underscore the system’s importance while highlighting the scope of potential misuse.
While the proposed removal of CRS points for LMIA-backed job offers aims to address fraud, its broader implications for Canada’s labor market and economic needs remain uncertain. Critics and experts alike stress the importance of implementing complementary measures, such as improving the LMIA screening process and increasing oversight of employers and immigration consultants.
