In a significant development for immigration to Canada, Immigration, Refugees, and Citizenship Canada (IRCC) has announced the removal of Labour Market Impact Assessment (LMIA)-based job offer points from the Comprehensive Ranking System (CRS) used in Express Entry. This decision marks a pivotal shift in how candidates for Canadian permanent residency are evaluated, with far-reaching implications for both applicants and the integrity of the immigration system.
Understanding the Comprehensive Ranking System (CRS)
The CRS is the backbone of Canada’s Express Entry system, which is designed to manage applications for permanent residency. Candidates are assessed and ranked based on several factors, including:
- Age
- Education
- Language Proficiency
- Work Experience
These “core human capital” factors account for up to 600 points in a candidate’s CRS score. An additional 600 points can be awarded for factors such as:
- Having a sibling who is a Canadian citizen or permanent resident
- French language proficiency
- Post-secondary education in Canada
- Provincial/territorial nominations
- Arranged employment (now under review)
Previously, candidates with LMIA-based job offers could receive 50 or 200 additional points depending on the National Occupational Classification (NOC) category of the job. These additional points often made the difference between receiving an Invitation to Apply (ITA) for permanent residency or missing out.
Why the Change?
Immigration Minister Marc Miller announced the policy shift on December 17, citing the need to enhance the fairness and integrity of the immigration system. “This measure is expected to remove the incentive for candidates to purchase an LMIA, resulting in increased fairness and integrity in Express Entry,” Miller stated.
The move is also part of a broader effort to curb LMIA fraud. In recent years, there have been reports of some candidates using fraudulent job offers to inflate their CRS scores. By eliminating LMIA-based points, IRCC aims to reduce such malpractice and level the playing field for all candidates.
Immediate and Long-Term Impacts on Applicants
This change will have several immediate and long-term effects on Express Entry candidates:
- Increased Competition: Without the additional points from LMIAs, candidates will need to rely more on core human capital factors like education, age, and language skills. This could increase competition among candidates with high CRS scores from these factors.
- Focus on Genuine Employment: Candidates seeking to use arranged employment as a pathway to permanent residency will need to ensure their job offers are genuine and compliant with Canada’s immigration policies.
- Category-Based Draws Gain Importance: Throughout 2024, many Express Entry draws focused on specific categories such as healthcare, tech, and French-speaking candidates. These category-based draws often had lower CRS cut-offs, offering opportunities to candidates who may not score highly in general draws.
Broader Context: Changes to the Temporary Foreign Worker Program (TFWP)
The policy change aligns with recent adjustments to the Temporary Foreign Worker Program (TFWP), another key immigration pathway. In September 2024, the federal government suspended the processing of LMIAs for low-wage streams and raised wage requirements for high-wage streams. Workers in the high-wage stream must now earn 20% above the median wage for their occupation and region, compared to the previous benchmark of the median wage.
These adjustments reflect a shift in Canada’s immigration priorities towards more targeted and high-skilled economic immigration. According to the latest Immigration Levels Plan, the government has set a target of 82,000 net new TFWP work permits by 2025.
Implications for Prospective Immigrants
Prospective immigrants should take note of the following:
- Maximize CRS Scores: Candidates should focus on improving their scores through education, language proficiency, and obtaining provincial nominations.
- Explore Provincial Nominee Programs (PNPs): PNPs remain a viable alternative for candidates with lower CRS scores. Many provinces offer streams tailored to specific occupations and skills in demand.
- Prepare for Increased Scrutiny: With the removal of LMIA-based points, IRCC is likely to place greater emphasis on verifying the authenticity of job offers and other supporting documents.
Statistical Insights: The Bigger Picture
- Express Entry Trends: In 2024, CRS cut-off scores in general Express Entry draws frequently exceeded 500 points, reflecting intense competition. Category-based draws, however, had cut-offs as low as 300 points in some instances, particularly for French-speaking and healthcare professionals.
- Immigration Targets: Canada aims to welcome 465,000 new permanent residents in 2024 and 485,000 in 2025. Economic immigration accounts for nearly 60% of these targets, underscoring the importance of Express Entry and TFWP pathways.
The removal of LMIA-based points from the CRS is a bold step towards a more equitable and transparent immigration system. While it may pose challenges for some candidates, it also opens up opportunities for those with strong core human capital factors. As Canada continues to refine its immigration policies, prospective applicants must stay informed and adapt their strategies accordingly.
