Labour Market Opinions

Posted: August 10, 2010 by Andres Pelenur

Service Canada Tightening Rules

The slowing of Canada’s economy over the last twelve months has created a shift in how Service Canada processes Labour Market Opinion applications.  An LMO, as they are commonly known, is a labour market analysis on the impact to Canada’s economy and labour force that might occur when a company chooses to hire a foreign worker. In the past, when Canada was experiencing strong labour shortages, Service Canada approved LMO applications with less evidentiary requirements. Although Canadian companies still face huge labour shortages, Service Canada has responded to the economic slow down by tightening their rules. For example, in the past, when an employer listed a salary that Service Canada felt was below the regional average, they would usually allow employers the chance to raise the salary before refusing the application. Currently, we are finding that Service Canada is assessing applications on the information provided at first instance, making it even more important for applications to be professionally prepared under the guidance of an experienced lawyer. Minimum advertising requirements have also changed several times in the recent past, with Service Canada enforcing those rules quite strictly. Even the transition of individuals with post-graduate work permits to LMO supported work permits has become less transparent than it used to be, though with the right knowledge and expertise, Canadian employers who desperately require foreign workers should continue to be able to secure positive Labour Market Opinions from Service Canada.

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