A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that allows a Canadian employer to hire a foreign worker. An LMIA confirms that hiring a foreign worker will not negatively impact the Canadian labour market. When approved, it is called a positive LMIA, meaning there is a genuine need for a foreign worker and no qualified Canadian citizen or permanent resident is available to fill the position.
The Canadian government uses LMIA to protect the job opportunities and wage conditions of Canadians. It ensures:
Employers are genuinely unable to find Canadian workers.
Foreign workers are treated fairly.
Labour shortages in Canada are addressed responsibly.
Wage and working conditions meet Canadian standards.
Most employer-specific (closed) work permits require a positive LMIA before a foreign worker can apply for a work permit.
Only the employer can apply for an LMIA.
Foreign workers cannot submit an LMIA application on their own.
Once approved, the employer provides the LMIA confirmation letter and job offer details to the foreign worker, who then applies for a work permit.
ESDC categorizes LMIA applications into different streams depending on the role, wage, and sector:
Jobs above the provincial median wage.
Jobs below the provincial median wage, often requiring additional employer commitments such as housing or transportation.
Fast processing (as little as two weeks) for specialized tech and engineering roles.
For farming, greenhouse, and livestock roles.
For childcare and home support roles.
When employers support workers for PR through programs like Express Entry.
Most LMIA streams require employers to advertise the job for at least 4 consecutive weeks in:
The Government of Canada Job Bank
Two or more additional platforms (Indeed, LinkedIn, company website, etc.)
Ads must target underrepresented groups where appropriate.
Employers must prove:
Financial capacity to pay wages
Active, lawful operation in Canada
Genuine need for the worker
No history of non-compliance
Wages must:
Meet or exceed the provincial median
Match the occupation’s standard wage
Include fair benefits and working conditions
Most LMIA applications require a fee of:
? $1,000 CAD per position
(Some streams such as certain caregiver or agricultural roles may be fee-exempt.)
Employer chooses the correct category (high-wage, low-wage, GTS, etc.).
Employer posts job ads and keeps detailed proof of recruitment efforts.
This includes:
Proof of business legitimacy
Financial documents
Job offer details
Recruitment summaries
Transition plan (for high-wage roles)
Employer sends all documents, forms, and fees to ESDC.
An ESDC officer may contact the employer:
To confirm the job offer
To ask about recruitment efforts
To verify company authenticity
Processing times vary (2 to 16 weeks depending on the stream).
A positive LMIA will include:
LMIA confirmation number
Worker’s name(s)
Job offer details
The foreign worker submits:
LMIA letter
LMIA number
Job offer/contract
Additional documents (biometrics, medical exam, police certificate)
Some work permits fall under LMIA-exempt categories, including:
Intra-company transferees
International trade agreements (e.g., CUSMA)
Study permit holders with open work permits
Spousal open work permits
Certain francophone mobility programs
These fall under Canada’s International Mobility Program (IMP).
Incomplete documentation
Insufficient recruitment efforts
Wage below provincial standards
Job description unclear or inconsistent
Employer cannot prove financial ability
Poor compliance history
An LMIA is one of the most important steps for employers who want to hire foreign workers. While the process may appear complex, a well-prepared application significantly increases approval chances. With a positive LMIA, foreign workers can obtain an employer-specific work permit and eventually pursue permanent residency pathways in Canada.
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