LMIA — high-wage and low-wage streams
Overview
A Labour Market Impact Assessment (LMIA) is a document from Employment and Social Development Canada (ESDC) confirming that there is a genuine need for a foreign worker to fill a position and that no Canadian citizen or permanent resident is available to do so. LMIA applications are divided into high-wage and low-wage streams depending on whether the offered wage is at or above (high-wage) or below (low-wage) the provincial/territorial median wage. The streams have different requirements, including the Transition Plan requirement for high-wage positions and the cap on low-wage foreign workers per employer.
The LMIA process is administered by Service Canada (ESDC). It is distinct from the work permit application, which is filed with IRCC (or CBSA at the border) after the LMIA is approved. An approved LMIA is not a work permit — it is a prerequisite for applying for a work permit under the Temporary Foreign Worker Program (TFWP).
Legal basis
- Immigration and Refugee Protection Regulations, SOR/2002-227, ss 203–204 — the LMIA requirement and the factors ESDC considers in its assessment
- ESDC Program Delivery Instructions — the detailed requirements for each stream, including advertising, wages, and Transition Plans
How it works
High-wage stream
The high-wage stream applies where the offered wage meets or exceeds the provincial/territorial median wage for the occupation. Requirements include:
- Advertising: the employer must advertise the position for at least 28 days on Job Bank and at least two other recruitment methods, targeting underrepresented groups (Indigenous Canadians, youth, newcomers, persons with disabilities)
- Transition Plan: the employer must submit a Transition Plan outlining the steps they will take to reduce their reliance on temporary foreign workers over time. The plan may include activities such as offering training to Canadian workers, partnering with educational institutions, or adjusting wages
- LMIA validity: typically up to 12 months for the high-wage stream
Low-wage stream
The low-wage stream applies where the offered wage is below the provincial/territorial median wage. More restrictive requirements apply:
- Cap on low-wage TFWs: employers are generally capped at 10% (or 20% in some sectors) of their workforce being low-wage TFWs. Employers with more than this percentage may be refused an LMIA
- Advertising: same as the high-wage stream
- No Transition Plan required: however, more scrutiny is applied to the genuineness of the labour shortage
- Restrictions by sector and region: certain sectors and regions with high unemployment are not eligible for low-wage stream LMIAs
The LMIA assessment
ESDC assesses LMIA applications based on:
- Whether there is a genuine need for the position
- The employer's recruitment efforts and results
- Whether the wages and conditions offered are consistent with market rates
- The impact on the labour market (whether hiring a TFW would displace Canadian workers or undermine wages)
LMIA result
ESDC may issue a positive LMIA, a neutral LMIA, or a negative LMIA. Only a positive LMIA supports a work permit application. A neutral LMIA is issued in very limited circumstances. A negative LMIA means the work permit application cannot proceed.
Revocation
ESDC may revoke an LMIA if it finds the employer misrepresented information, failed to comply with conditions, or no longer meets requirements. An employer with a revoked LMIA may be blacklisted from future LMIA applications.