June 11, 2025
A Labour Market Impact Assessment (LMIA) is a key requirement for Canadian employers seeking to hire foreign workers. Issued by Employment and Social Development Canada (ESDC), an LMIA confirms that there is a legitimate need for a foreign worker to fill a job and that no Canadian citizen or permanent resident is available to do so.
Purpose of an LMIA
The LMIA process safeguards the Canadian labour market by ensuring the hiring of foreign workers does not negatively impact Canadian job seekers. Employers must demonstrate that they have made reasonable efforts to hire locally and that those efforts were unsuccessful.
LMIA Focus
An LMIA evaluates the job position and the employer’s efforts to fill it locally. A positive LMIA means that:
- There is a genuine need for the position to be filled.
- The employer has made sufficient efforts to recruit Canadians or permanent residents.
The LMIA itself does not evaluate the foreign worker. Once issued, the foreign worker must apply for a work permit, which is reviewed separately by Immigration, Refugees and Citizenship Canada (IRCC) or Canada Border Services Agency (CBSA).
Types of LMIA
LMIAs are classified based on the wage level and employment purpose:
- High-Wage LMIA: For positions paying at or above the median wage in the province/territory.
- Low-Wage LMIA: For positions paying below the median wage, subject to additional employer requirements such as transportation, housing, and a cap on the number of foreign workers.
- Specialized Streams: Including:
- Global Talent Stream
- LMIA for permanent residence (Express Entry support)
- Seasonal Agricultural Worker Program (SAWP)
- Caregiver Program
Each stream carries unique requirements, timelines, and documentation standards.
Application Process
To apply for an LMIA, employers must:
- Register and submit an application through the online LMIA portal.
- Provide a detailed job description.
- Submit proof of recruitment efforts (job advertisements meeting ESDC requirements).
- Include information on wages, working conditions, and benefits.
In most cases, ESDC will interview the employer to verify information before making a decision.
Impact on Foreign Workers
A job offer supported by a positive LMIA enables the foreign national to apply for a work permit. Additionally, an LMIA-based job offer can significantly enhance the applicant’s eligibility for permanent residence under programs such as:
- Federal Skilled Worker Program (FSWP)
- Canadian Experience Class (CEC)
- Provincial Nominee Program (PNP)
Fees and Timelines
- Application Fee: $1,000 per position, payable by the employer (non-refundable).
- Processing Time: Varies by stream and volume of applications. High-demand streams like the Global Talent Stream may receive expedited processing.
Conclusion
Understanding LMIAs is essential for employers seeking to address skill shortages and for foreign nationals aiming to work or immigrate to Canada. The LMIA process ensures that Canadian workers are prioritized while offering a pathway for foreign talent to contribute to the national workforce under fair and regulated conditions.
