Canada Express Entry points for a job offer backed by a Labour Market Impact Assessment will be removed, Immigration Minister Marc Miller has confirmed.

In a televised interview, Miller said he would be following through on the previously announced plan to cancel the 50 or 200 points available for an LMIA-backed job offer in the Express Entry Comprehensive Ranking System.

There was no indication as to when the change will be made.

On This Page, You Will Find:

• A detailed explanation of the removal of CRS points for LMIA-backed job offers in Canada Express Entry.
• Implications for candidates relying on these points to secure Invitations to Apply (ITAs).
• Key impacts on employers hiring foreign workers under LMIA-supported offers.
• Changes to the Comprehensive Ranking System (CRS) and its scoring criteria.
• Strategies for candidates and employers to adapt to this significant policy shift.

The crucial points can be the difference to whether a candidate receives a coveted Invitation to Apply for immigration to Canada, often tipping a profile over the numbers of points required in regular Express Entry draws.

It is a response to controversy over LMIA-back jobs offers being sold at extortionate prices to desperate candidates by nefarious actors. The Financial Post newspaper reported that Immigration, Refugees and Citizenship Canada (IRCC) failed to check the validity of such offers of employment.

The move represents a dramatic decline in the power of the job offer on an Express Entry profile. When the system was first introduced, in 2015, a job offer was worth 600 points, the same as a provincial nomination. That amount was reduced to 50 or 200 two years later, as IRCC sought to better balance the CRS with a candidate’s other credentials.

The 200 points were available for a job offer in NOC TEER 0, major group 00, while the 50 points were for a job offer in NOC TEER 1, 2 or 3, or any TEER 0 other than major group 00.

What Does This Mean For Candidates?

This development has significant implications for candidates relying on job offers backed by a Labour Market Impact Assessment (LMIA) to boost their Express Entry Comprehensive Ranking System (CRS) scores. Here’s what it means:

1. Reduced Importance of LMIA-Backed Job Offers:
   Once the change takes effect, LMIA-backed job offers will no longer contribute CRS points. This marks a significant shift in how candidates can improve their scores, emphasizing other factors like age, education, language proficiency, and work experience.
2. Impact on Invitations to Apply (ITAs):
   Candidates who were counting on the 50 or 200 points from LMIA-backed job offers to meet the cut-off scores in regular draws may find it more challenging to secure an Invitation to Apply (ITA). This change could increase competition among profiles based solely on human capital factors.
3. Focus on Authentic Credentials:
   The move is a response to fraudulent practices and concerns about the exploitation of candidates. Without the CRS incentive, candidates and employers may prioritize genuine offers and credentials rather than relying on LMIA-backed points to manipulate CRS scores.
4. Potential for a Fairer System:
   By removing LMIA-backed points, the Express Entry system may become more equitable, focusing on a candidate’s overall qualifications rather than their ability to secure or purchase a job offer. This could better align with the program’s goals of attracting skilled immigrants based on merit.
5. Increased Importance of Provincial Nominee Programs (PNPs):
   With the elimination of LMIA points, provincial nominations (worth 600 points) may play a more critical role in boosting CRS scores. Candidates should consider exploring PNP options that align with their skills and experience.
6. Uncertainty for Current Candidates:
   The absence of a timeline for this change leaves candidates in limbo. Those currently benefiting from LMIA-backed points may need to act quickly to submit profiles or receive ITAs before the change is implemented.

What Does This Mean For Employers?

For employers in Canada, the removal of Express Entry points for LMIA-backed job offers will have several key implications:

1. Reduced Incentive for Candidates to Seek LMIA-Supported Jobs

• Less Appeal for Foreign Workers:
  Without the CRS points benefit, LMIA-backed job offers may become less attractive to Express Entry candidates. Employers might face challenges in finding foreign workers who previously sought LMIAs to boost their immigration prospects.
• Focus on Genuine Interest:
  Candidates accepting job offers will likely do so based on genuine career opportunities rather than as a means to increase their CRS scores, resulting in more committed hires.

2. Increased Compliance and Monitoring Pressure

• Stricter Scrutiny:
  The changes are partly driven by fraudulent practices involving LMIA-backed offers. Employers should expect heightened monitoring by Immigration, Refugees and Citizenship Canada (IRCC) to ensure compliance and the legitimacy of job offers.
• Higher Standards of Documentation:
  Employers may need to improve their processes and provide robust documentation to justify their use of the LMIA process, even if the CRS incentive is removed.

3. Greater Reliance on Alternate Pathways

• Provincial Nominee Programs (PNPs):
  Employers may need to shift their focus toward helping candidates secure provincial nominations, which remain highly valuable in the immigration process (worth 600 CRS points).
• Temporary Foreign Worker Program (TFWP):
  Employers who rely on LMIAs may increasingly use the TFWP to bring workers to Canada for temporary roles, as the pathway to permanent residency via Express Entry becomes less tied to job offers.

4. Potential Challenges in Attracting Global Talent

• Fewer Immediate Incentives:
  Without CRS points for LMIA-backed offers, foreign talent may find Canada less appealing compared to other countries offering clearer pathways from job offers to permanent residency.
• Increased Hiring Costs:
  Employers may need to invest more in attracting candidates, offering competitive salaries, benefits, and support to secure and retain international talent.

5. Opportunities for Genuine Recruitment

• Focus on Skills and Long-Term Fit:
  Employers may benefit from a more transparent recruitment process where candidates are motivated by job opportunities rather than CRS boosts. This could lead to better matches between employers and skilled immigrants.
• Enhanced Reputation:
  Employers adhering to best practices and avoiding misuse of LMIAs will benefit from a stronger reputation, making them more attractive to candidates and regulatory bodies.

6. Adapting Recruitment Strategies

• Employers will need to reassess their hiring strategies for foreign workers, considering:
  • Promoting roles through PNP-aligned streams.
  • Supporting candidates in maximizing other CRS factors (e.g., language training, credential recognition).
  • Utilizing the Global Talent Stream for expedited work permits.

What Does This Mean For The Comprehensive Ranking System?

1. Increased Focus on Core Human Capital Factors

• More Balanced Scoring:
  With LMIA-backed job offers no longer contributing 50 or 200 points, the CRS will place greater emphasis on factors such as:
  • Age
  • Education
  • Language proficiency (English/French)
  • Work experience (both Canadian and foreign) Candidates will need to focus on optimizing these core factors to improve their scores.
• Higher Thresholds for ITAs:
  Removing job offer points could lead to higher CRS cut-off scores in draws, as candidates with inflated scores due to LMIA points will no longer dominate.

2. Shift in CRS Dynamics

• Reduced Weight of Job Offers:
  When the Express Entry system was launched in 2015, job offers were worth 600 points, equivalent to a provincial nomination. Over time, their weight was reduced to 50 or 200 points. Eliminating them entirely reflects a significant shift away from prioritizing job offers as a key factor in ranking candidates.
• Provincial Nominations Become More Valuable:
  Provincial Nominee Program (PNP) nominations, still worth 600 points, will gain prominence as the only major “boost” to CRS scores. Candidates and provinces may increasingly focus on aligning skills with regional labor market needs.

3. More Competitive Pool of Candidates

• Level Playing Field:
  Candidates will no longer rely on LMIA-backed points to gain an advantage. This creates a fairer system, where only candidates with strong human capital factors or provincial nominations rise to the top.
• Increased Competition:
  With fewer opportunities for quick score boosts via LMIA-backed offers, the pool may become more competitive, requiring candidates to strengthen their profiles in other ways.

4. Impact on Draw Types

• Broader Distribution of ITAs:
  Removing LMIA-backed points may result in more diverse selection of candidates, as IRCC draws could prioritize specific occupations, skills, or education levels rather than candidates with job offers.
• Category-Based Selection Gains Importance:
  IRCC has already introduced category-based selection for Express Entry draws (e.g., healthcare, tech, trades). The removal of LMIA points aligns with this focus, as job offers will no longer disproportionately influence results.

5. Fraud Prevention and Integrity

• Mitigation of Fraudulent LMIA Practices:
  The decision to remove LMIA points addresses concerns about fraud, where unscrupulous actors exploited the system by selling fake or overpriced job offers. Without CRS points as an incentive, the integrity of Express Entry will likely improve.
• Better Validation of Genuine Credentials:
  Candidates’ scores will now depend more heavily on verifiable achievements like language scores and educational credentials, reducing the risk of manipulation.

6. Long-Term Effects on CRS Trends

• Higher Emphasis on Adaptability:
  Candidates who demonstrate adaptability to Canada’s labor market—through education, language skills, or Canadian work experience—will gain an edge.
• Dynamic CRS Cut-Offs:
  The removal of LMIA points could lead to fluctuations in CRS cut-off scores as the pool adjusts, especially in the short term, as candidates shift strategies to meet the selection criteria.

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