What Is an LMIA? How Labour Market Impact Assessments Work in Canada

If you want to hire a foreign national to fill a job in Canada, you have likely come across the term LMIA — Labour Market Impact Assessment. For most employer-sponsored work permits, the LMIA is the critical first step. Understanding what it is, why it exists, and what the process looks like will save you time and help you avoid costly mistakes.

The short answer: what an LMIA actually is

An LMIA is a document issued by Employment and Social Development Canada (ESDC) that confirms a Canadian employer made genuine efforts to find a qualified Canadian citizen or permanent resident for a job before turning to a foreign worker. A positive LMIA means ESDC is satisfied that no suitable Canadian was available and that hiring a foreign national will not harm the Canadian labour market. A negative LMIA means the application was refused.

Once an employer holds a positive LMIA, the foreign worker named in it can use that document — along with a job offer letter — to apply to Immigration, Refugees and Citizenship Canada (IRCC) for an employer-specific work permit.

Why does the LMIA exist?

The legal basis for the Temporary Foreign Worker Program (TFWP) sits within the Immigration and Refugee Protection Act (IRPA) and its regulations. Parliament designed the program on the principle that Canadians and permanent residents have first priority in the labour market. The LMIA requirement is the gatekeeping mechanism: before a job can be offered to someone abroad, the employer must demonstrate — with documentation — that the domestic workforce was given a fair opportunity.

ESDC uses the assessment to weigh several factors, including:

• Whether the wages and working conditions match what Canadians in the same occupation typically receive
• Whether the employer made sufficient recruitment efforts
• Whether the job is in a high-demand occupation or a region experiencing labour shortages
• Whether hiring the foreign worker would create a transfer of knowledge, fill a genuine gap, or produce other economic benefits

The two broad streams: high-wage and low-wage

ESDC divides LMIA applications into two main streams based on whether the offered wage is above or below the provincial or territorial median hourly wage (as published periodically by ESDC — confirm the current threshold on Canada.ca before applying):

High-wage stream applies when the wage is at or above the median. These positions generally have fewer restrictions but still require recruitment evidence and a transition plan showing the employer's commitment to eventually filling the role with a Canadian.

Low-wage stream applies when the wage falls below the median. This stream carries additional requirements, including a cap on the proportion of low-wage temporary foreign workers an employer can have on site at any one time (see separate article on the cap). Employers must also cover return transportation costs and provide or arrange housing for workers.

Agriculture and specific programs

Certain sectors — notably primary agriculture, live-in caregivers, and in-home child care — have their own dedicated streams or pathways with different rules. The seasonal agricultural worker program (SAWP) operates under bilateral agreements with specific countries. Employers in those sectors should confirm which stream applies before beginning the process.

Step-by-step: how the LMIA application works

1. Determine whether you need an LMIA

Not every foreign worker requires one. International agreements (such as the Canada–United States–Mexico Agreement, CUSMA) exempt certain categories. Intra-company transfers, some research positions, and IRCC-exempted categories may not need an LMIA. Confirm with an immigration lawyer before assuming an exemption applies.

2. Determine the correct wage and stream

Look up the median wage for your province and the National Occupational Classification (NOC) code for the position. The wage you are offering determines which stream applies and whether caps or additional obligations kick in.

3. Run the recruitment effort

ESDC requires employers to advertise the position and conduct genuine recruitment before submitting the LMIA application. This typically means posting on the national Job Bank and at least two additional recruitment platforms appropriate to the occupation (newspapers, professional associations, job boards, etc.) for a minimum period set by ESDC — confirm current requirements on Canada.ca. You must document every step: ad copy, run dates, applications received, interviews conducted, and the reason each Canadian applicant was not hired.

4. Submit the LMIA application to ESDC

The application is submitted online through ESDC's employer portal. You will upload:

• Recruitment records
• Business legitimacy documents (CRA business number, articles of incorporation or business registration, recent tax documents)
• Financial information showing the business can pay the offered wage
• The job offer letter
• Any sector-specific documents

5. Wait for a decision

ESDC may process the application, request additional documents, or schedule an interview with the employer. Processing times vary by stream and volume — check the current posted processing times on Canada.ca. As of writing, processing is not instantaneous; plan ahead and do not ask the worker to resign their current position until a positive LMIA is in hand.

6. Worker uses the positive LMIA to apply for a work permit

Once ESDC issues a positive LMIA, it is valid for a set period (confirm the current validity window on Canada.ca). The named worker must apply to IRCC for a work permit before that window closes. The work permit — if granted — will be employer-specific and tied to the job described in the LMIA.

Frequently asked questions