What happens if a US national applies for a job during the Labor market test (recruitment) phase of GC process? Does the clock reset ? Does it reset even when the applicant is not hired ?

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They have to qualify (meet the skills criteria), pass all interviews, receive an offer and accept said offer.

Wouldn't that be difficult when you are an FTE at end client. I believe it would be easier for consulting firms to hire additional person without impacting market test, but for end client role this sounds like a really challenging to process.

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