Labour Market Impact Assessment

A Labour Market Impact Assessment (LMIA) is issued by Employment and Social Development Canada (ESDC) and assesses whether hiring a foreign worker will have a positive, neutral, or negative impact on the Canadian labour market. A positive or neutral LMIA confirms that no Canadian citizen or permanent resident was available to fill the role and authorises the employer to proceed with hiring a foreign national.

The LMIA requirement is the primary mechanism by which the Temporary Foreign Worker Program (TFWP) ensures that foreign workers supplement, rather than displace, the domestic workforce. Employers must advertise the position, demonstrate recruitment efforts, and offer the prevailing wage for the occupation and region.

An LMIA is required for most closed work permits under the Temporary Foreign Worker Program. However, significant categories of work permits are LMIA-exempt under IRPR s 204 (international agreements, including CUSMA/USMCA and CETA), IRPR s 205 (Canadian interests, including intra-company transfers and reciprocal employment streams), and IRPR s 207 (humanitarian reasons). The International Mobility Program (IMP) administers LMIA-exempt work permits. A positive LMIA has a validity period (typically six months) within which the foreign national must submit their work permit application.