Canada immigration, Discover, Marc Miller, temporary foreign workers

Canada tightens immigration point system to curb fraud tied to job selling

The move appears to be another step by the federal government to reduce the number of newcomers entering the country

Get the latest from Naimul Karim straight to your inbox

Temporary foreign workers who apply to become permanent residents through Canada’s immigration system will no longer get additional points if they have a job offer that’s supported by a Labour Market Impact Assessment (LMIA), Immigration Minister Marc Miller said on Tuesday.

The move will reduce fraudulent activities in Canada’s Express Entry System, which is an online platform that manages the country’s skilled immigration programs, the minister said at a press conference.

Financial Post
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favourite authors

Sign In or Create an Account

or
View more offers
If you are a Home delivery print subscriber, online access is included in your subscription. Activate your Online Access Now

“We are implementing further measures that will reinforce program integrity and reduce potential LMIA fraud, such as removing additional points that candidates receive under Express Entry for having a job offer,” he said. “This measure is expected to remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity in the system.”

The latest move seems to be a continuation of the steps taken by the federal government to reduce the number of newcomers entering the country amidst rising unemployment and a housing crisis. It was announced on the same day that Statistics Canada reported the country’s slowest quarterly population growth estimate since the first quarter of 2022.

Employers can use Canada’s temporary foreign worker program to hire foreign workers, but they often need to prove that they aren’t able to find a worker for that specific position in Canada. In order to do that, they must receive a federal government document called the Labour Market Impact Assessment (LMIA).

Posthaste
Posthaste

Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.

By signing up you consent to receive the above newsletter from Postmedia Network Inc.

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. Most applications were for farm workers, cooks, food-counter attendants, truck drivers and construction labourers.

Some groups, however, illegally sell LMIA-approved jobs at extremely high rates to foreigners who are either outside the country or are already in Canada and are looking for ways to boost their immigration score in order to transition from temporary to permanent resident status.

Most temporary residents, such as international students and foreign workers inside the country and foreigners living outside the country, try to immigrate to Canada as skilled workers. They apply through the Express Entry platform, which started about a decade ago and provides prospective immigrants with points for their education level, work experience, English and French language proficiency, age and other factors.

The higher the applicants score — out of a total of 1,200 — the more chances they have of becoming permanent residents, which eventually leads to citizenship. The system is designed to attract young, skilled people from around the world.

For example, applicants under 30 receive the highest possible number of points in the age category. Applicants also receive points for Canadian educational degrees and work experience.

An LMIA would have provided applicants with 50 to 200 points.

One government officer who processes LMIA applications anonymously told the Financial Post earlier this year that there weren’t enough checks and balances in place to properly assess the applications. The federal government, though, said it has increased inspections in this area in recent years.

Last year, the temporary foreign workers program was described in a United Nations report as a breeding ground for slavery.

Industry insiders say the demand for LMIAs has increased in recent years because recent changes to Canada’s points-based immigration system for skilled workers have made it tougher for prospective immigrants to qualify.

As such, LMIAs this year were reportedly sold at a higher price than before, ranging from $10,000 to as much as $70,000 in some cases.

The government has not announced a date to implement its latest move.

• Email: nkarim@postmedia.com

Bookmark our website and support our journalism: Don’t miss the business news you need to know — add financialpost.com to your bookmarks and sign up for our newsletters financialpost.com.