Labour Market Impact Assessment (LMIA)
Overview
A Labour Market Impact Assessment (LMIA) is an assessment conducted by Employment and Social Development Canada (ESDC) to determine whether hiring a foreign worker for a specific position will have a positive, negative, or neutral impact on the Canadian labour market. A positive LMIA is generally required before an employer-specific work permit can be granted to a foreign worker (unless an exemption applies).
The LMIA process is separate from the work permit application itself. ESDC assesses the employer's application and issues the LMIA; the foreign worker then applies to IRCC for a work permit using the positive LMIA as supporting evidence.
A positive LMIA confirms that: (a) the employer made genuine efforts to recruit a Canadian citizen or permanent resident; (b) no suitable Canadian was available; and (c) the wages and working conditions offered meet the prevailing standard.
Eligibility
When an LMIA is required
An LMIA is required whenever an employer wishes to hire a foreign national for a position under the Temporary Foreign Worker Program (TFWP) and no LMIA exemption applies. The LMIA process applies to:
- High-wage stream — positions where the offered wage is at or above the median hourly wage in the province or territory
- Low-wage stream — positions where the offered wage is below the median wage; subject to additional requirements including employer-paid return transportation and access to health care coverage during the employment period
- Agricultural stream — seasonal agricultural workers; specific requirements apply
- In-home caregiver stream — specific LMIA requirements for in-home caregivers
LMIA-exempt categories
Many foreign workers are exempt from the LMIA requirement under IRPR s.204 (significant benefit to Canada or bilateral arrangements) or s.205 (Canadian interests). Key LMIA-exempt categories include:
- Intra-company transferees (managers and specialised knowledge workers)
- Workers under international trade agreements (e.g., CUSMA/USMCA for US and Mexican nationals)
- International Experience Canada participants (Working Holiday, Young Professionals, Co-op)
- Spouses and common-law partners of certain temporary residents (open work permit, not employer-specific)
- Persons with a job offer that supports a permanent residence application through Express Entry (where the offer is from a designated employer in a NOC TEER 0, 1, 2, or 3 occupation)
Selection criteria
ESDC assesses LMIA applications on several factors:
- Recruitment effort — the employer must demonstrate genuine recruitment efforts targeting Canadians and permanent residents, typically by advertising the position for a minimum period through required channels
- Wages and working conditions — the offered wage must be consistent with the prevailing wage for the occupation in the region
- Benefits to the labour market — whether hiring the foreign worker will create or maintain jobs for Canadians, or transfer skills or knowledge to Canadians
- Compliance history — employers with a history of non-compliance with LMIA conditions may be assessed more rigorously or refused
Application process
- Employer determines whether an LMIA is required — checks whether the position and circumstances qualify for an exemption under IRPR s.204 or s.205.
- Employer conducts recruitment — if an LMIA is needed, the employer advertises the position for the required period (minimum 4 weeks for most positions) through required channels and documents the recruitment results.
- Employer applies for LMIA — submits the LMIA application to ESDC with recruitment evidence, job offer letter, and required fees.
- ESDC assessment — ESDC reviews the application; may contact the employer for additional information.
- LMIA issued — a positive LMIA is sent to the employer and a copy to the foreign worker; the LMIA number and the employer's confirmation code are used in the work permit application.
- Foreign worker applies for work permit — the foreign worker submits a work permit application to IRCC using the positive LMIA as supporting evidence.
Related programs
Notes
A positive LMIA is valid for 18 months from the date of issue. The work permit application must be submitted within this validity period.
ESDC maintains a compliance regime for TFWP employers — employers who have received LMIAs may be inspected to confirm compliance with the conditions (wages, working conditions, housing where applicable). Non-compliant employers may be blacklisted from the TFWP.
The Global Talent Stream (GTS) is a fast-track LMIA stream for employers hiring highly skilled workers in designated occupations, with processing times as short as 2 weeks. The GTS is available for positions in specific technology and other high-demand occupations.