A Labour Market Impact Assessment (LMIA) is a key document required by skilled foreign workers who want to work in Canada. The employer provides this document to the applicant so they can apply for a work permit or permanent residency.
The LMIA evaluates how hiring a skilled foreign worker will affect the Canadian job market. It is issued by Employment and Social Development Canada (ESDC).
A positive LMIA means no Canadian citizens or permanent residents are available to fill the job, so a foreign worker is needed.
A negative LMIA means there are qualified Canadians available.
Important Note About LMIA
Applicants cannot apply for the LMIA themselves.
Only a Canadian employer can apply for it.
All skilled foreign workers under the Temporary Foreign Worker Program (TFWP) require an LMIA unless they are part of a visa category that is LMIA-exempt.
When Employers Need an LMIA
If an employer wants to hire a foreign worker, they must apply for the LMIA through TFWP.
To receive points for immigration programs like Express Entry, a valid LMIA is required.
The employer must apply at least 6 months before the job start date.
Processing times depend on whether the job is classified as high-wage or low-wage. Employers must also follow specific rules based on the job category.
Special LMIA Streams
Some positions have dedicated LMIA categories such as:
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In-home caregivers
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Farm workers
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Foreign academics
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Jobs in Quebec
These streams have unique eligibility rules.
Documents Needed for LMIA Application
When applying, employers must submit a complete paper application. Essential documents include:
1. Application Fees
A CAD 1,000 non-refundable fee is required for each LMIA application.
Some caregiver positions may be exempt from this fee.
2. Business Legitimacy Documents
Employers must provide proof that their business is real, active, and compliant with Canadian laws.
3. Transition/Adaptation Plan
Employers must show a plan explaining how they will transition to hiring Canadians instead of relying on foreign workers long-term.
4. Recruitment Efforts
Employers must prove they tried to hire Canadians before turning to foreign workers.
5. Wage Details
The wages offered must match the median wage for that occupation in the province or territory.
6. Workplace Safety
Employers must guarantee safe working conditions, proper health benefits, and insurance equal to those of Canadian employees.
Additional Requirements for Low-Wage LMIA
For low-wage positions, employers must also:
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Pay for the worker’s return airfare
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Provide affordable or free housing
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Follow limits on how many low-wage workers they can hire
LMIA Results
Once approved, an LMIA will be issued. It may be:
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Positive (approved) – employer can hire a foreign worker
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Negative (rejected) – employer must hire Canadians only
A positive LMIA is valid for 6 months. Some applications may be processed in as little as 10 days for priority occupations.
Who Gets Faster LMIA Processing?
A job may qualify for 10-day processing if:
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It is in a skilled trade
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It offers high wages
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The job duration is under 120 days
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It supports an Express Entry application
LMIA Summary
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LMIA is issued by ESDC
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It assesses the impact of hiring foreign workers
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Employers must apply—not workers
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A positive LMIA supports work permit and PR applications
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A negative LMIA means the employer must hire Canadians
Why LMIA Is Important
LMIA checks whether hiring a foreign worker is necessary and ensures it does not negatively impact Canadian workers.
Types of Jobs in LMIA
High-Wage Jobs
Pay equal to or above the provincial median wage.
Low-Wage Jobs
Pay below the median wage and include additional employer obligations.
LMIA Exemptions
Some jobs do not require an LMIA, such as:
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International agreement jobs (e.g., CUSMA)
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Intra-company transfers
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Certain academic or research roles
Minimum Requirements for Employers Applying for LMIA
Employers must meet specific criteria:
1. Job Offer Details
Provide a complete job description including duties, wages, and working conditions.
2. Job Bank Registration
Post the job on the Government of Canada’s Job Bank.
3. Recruitment Efforts
Advertise the job for at least 30 days on:
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Job Bank
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Two additional platforms
Employers must also interview qualified Canadian applicants.
4. Wage Compliance
Wages must meet provincial standards.
5. Supporting Documents
All required forms must be completed accurately and supported by evidence.
6. Processing Fee
A CAD 1,000 non-refundable fee must be paid.
7. ESDC Rules
Employers must comply with all Canadian labour laws and regulations.
8. Possible Interview
ESDC officers may contact the employer to verify details.
How to Apply for an LMIA (Step-by-Step)
Step 1: Determine if LMIA Is Needed
Check if the job falls under TFWP or an LMIA-exempt category.
Step 2: Register on Job Bank
Create an employer account to post the job ad.
Step 3: Start Recruitment
Advertise the job for 30 days and record all hiring efforts.
Step 4: Confirm Wage Standards
Ensure wages match provincial averages.
Step 5: Choose LMIA Stream
Select the correct stream: high-wage, low-wage, agriculture, caregiver, Global Talent Stream, etc.
Step 6: Complete Application
Prepare forms and all necessary documents.
Step 7: Pay Fees & Submit
Submit the application online or by mail.
Step 8: Continue Recruiting
Employers must keep looking for Canadian candidates until LMIA is approved.
Step 9: Respond to ESDC
Provide extra details or attend interviews if required.
Step 10: Receive LMIA Decision
Approved = hire the foreign worker
Rejected = must hire Canadians
Step 11: Send LMIA to Worker
The foreign worker uses it to apply for a work permit.
Benefits of LMIA
1. Fills Labour Shortages
Helps employers hire when there is no Canadian available.
2. Supports Economic Growth
Foreign workers increase productivity and support industry growth.
3. Creates Jobs
Additional business activity can create more jobs for Canadians.
4. Brings Specialized Skills
Foreign workers often bring new skills that are rare in Canada.
5. Ensures Fair Labour Standards
LMIA ensures fair wages and safe working conditions.
6. Supports Immigration Programs
A positive LMIA strengthens applications for work permits and PR.
Long-Term Effects of LMIA on Canada
1. Economic Growth
Filling skill shortages boosts productivity in key industries.
2. Labour Market Stability
Helps balance workforce needs as Canada faces an aging population.
3. Innovation and Diversity
Foreign workers bring fresh ideas, global experience, and new perspectives.
4. Skill Development
Local workers benefit from knowledge exchange and training opportunities.
5. Stronger Communities
Foreign workers contribute to local economies, pay taxes, and support public services.
6. Improved Labour Standards
Regulated hiring protects both foreign and Canadian workers.
Check out our Web Story at https://celpip.biz/web-stories/what-are-the-requirements-for-canada-lmia-work-permit/
