Last Updated on February 26, 2020 by Steven Meurrens

Regulation 203(3)(a) of the Immigration and Refugee Protection Regulations (the “IRPR“) states:

(3) An assessment provided by the Department of Employment and Social Development with respect to the matters referred to in paragraph (1)(b) shall, unless the employment of the foreign national is unlikely to have a positive or neutral effect on the labour market in Canada as a result of the application of subsection (1.01), be based on the following factors:

(a) whether the employment of the foreign national will or is likely to result in direct job creation or job retention for Canadian citizens or permanent residents;

The Temporary Foreign Worker Manual states that the following principles should guide the assessment of whether the employment of a foreign national will or is likely to result in direct job creation or job retention for Canadian citizens or permanent residents.

First, an officer conducting an analyis of a Labour Market Impact Assessment (an “LMIA”) application should reflect a reasonable and balanced approach ensuring that officers od not base their decision solely on the outcome of one of the seven labour market factors.  An employer can receive a positive LMIA even if this factor is assessed to be negative and an employer can receive a negative LMIA even if this factor is assessed to be positive.

Second, for Owner Operator LMIAs, assessing if the entry of a foreign national will result in the creation or retention of employment opportunities for Canadians and permanent residents holds more weight in determining the impact on the labour market.

Third, the following questions will help guide the assessment of this factor:

  1. How will the staffing of this position lead to direct job creation or retention?
  2. How many jobs will be created / retained?
  3. What are the job titles?
  4. When will the positions be filled?
  5. Are the positions full-time or part-time?
  6. What is the duration of the positions?
  7. Will the positions be staffed with Canadians / permanent residents?
  8. If the LMIA is for a high wage position does the Transition Plan reflect an activity which supports job creation or retention?
  9. Will the employment of the foreign national leead to job losses, now or in the foreseeable future, for Canadians or permanent residents?

Fourth, direct job creation happens when the employment of a single individual results in jobs for Canadians and permanent residents.  Direct jobs are those where Canadians and permanent residents have been or will be offered positions directly contingent on the employment of a foreign national, where employment of a foreign national will directly result in the employer being able to move part-time Canadian or permanent resident employees to full-time work, and where the employment of a foreign national will directly result in the employer being able to maintain their operations at a level that they could not without the foreign national.

ESDC - Job Creation