LMIA
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What is a Labour Market Impact Assessment?

A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to obtain before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job and that no Canadian citizen or permanent resident is available to do the job. A positive LMIA is sometimes referred to as a confirmation letter.

When an application is received, Employment and Social Development Canada (ESDC) officers evaluate several key factors before issuing a positive decision. These include:

1

Availability of Canadian Workers

Whether there are qualified Canadians or permanent residents available to fill the position.

2

Recruitment Efforts

What steps the employer has taken to recruit and hire Canadian workers.

3

Economic Impact

Whether hiring a foreign national will create or help retain jobs for Canadians.

4

Wage & Salary

If the offered wage meets or exceeds the regional average for the occupation.

5

Working Conditions

Whether the working conditions meet Canadian labour standards.

6

Labour Disputes

Whether the employer or industry is involved in an active labour dispute.

Once ESDC is satisfied with these concerns, a positive LMIA may be issued. This LMIA is typically specific to:

The Employer

Specific to the business that applied

The Job Location

Specific to the work location

The Position

Specific to the role being filled

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Important Notice: Obtaining a positive LMIA does not allow the foreign worker to change employers, job roles, locations, or regions in Canada. If any of these changes are desired, a new LMIA is required.

Steps for Employers to Apply for the LMIA

Learn about the process and requirements for hiring through the LMIA program

Before beginning the application process, employers must understand which LMIA category they are applying for. The most common categories are for high-wage workers (those earning above the median provincial or territorial wage) and low-wage workers (those earning below the median wage). Other LMIA categories include caregivers, agricultural workers, and positions under the Global Talent Stream.

Each category has specific requirements and conditions. For example, low-wage LMIAs might have stricter conditions regarding the maximum duration of the work permit, while high-wage LMIAs may require additional commitments to training and skills development for Canadians.

One of the most critical requirements for obtaining an LMIA is to prove that there are no qualified Canadians or permanent residents available to fill the job. To meet this condition, employers must advertise the position for a minimum of four consecutive weeks before applying for the LMIA. The job must be posted in at least three different mediums, including the Government of Canada's Job Bank and other platforms commonly used by Canadian employers.

Employers need to keep detailed documentation of the advertising efforts, including:
  • Copies of job postings
  • Dates the positions were advertised
  • Where the job was posted
  • A summary of the results, including the number of applications received and the reasons why any Canadian applicants were not suitable.
This proof of advertising demonstrates that the employer made a genuine effort to recruit Canadian citizens or permanent residents first.

Along with proof of job advertising, employers must submit various supporting documents with their LMIA application, including:
  • Business registration documents: To verify the legitimacy of the business.
  • Proof of financial capacity: Employers need to demonstrate that they can afford to hire the foreign worker.
  • Copy of the job offer: A detailed description of the job, including wages, working conditions, and any benefits.
  • Transition plan (for high-wage positions): Employers hiring high-wage workers must submit a transition plan that outlines how they will reduce their future reliance on foreign workers by training or hiring Canadians or permanent residents.

Once all required documents are prepared, employers can submit their LMIA application to Employment and Social Development Canada (ESDC), either online or by mail. Each LMIA application comes with a processing fee of $1,000 per position, except for specific exempt categories such as caregivers.

Processing times for LMIA applications vary depending on the type of worker and category. On average, high-wage and low-wage applications take about 8 to 29 business days. Applications under the Global Talent Stream, designed for highly specialized workers, are often processed within 10 business days.

Once an LMIA is approved, employers will receive a confirmation letter, and the foreign worker can use this to apply for a work permit. Approval periods vary based on the type of LMIA and whether the employer has met all the necessary criteria.

Upon receiving a positive LMIA, employers can proceed with hiring the foreign worker. It's important to note that LMIA approval is time-sensitive. Employers should ensure that the foreign worker applies for their work permit as soon as possible, as LMIAs can expire after a certain period.