What Is an LMIA?
A Labour Market Impact Assessment (LMIA) is a document that a Canadian employer may need to obtain before hiring a foreign worker. Issued by Employment and Social Development Canada (ESDC), the LMIA verifies that there is a genuine need for a foreign worker to fill the job and that no Canadian citizen or permanent resident is available to do the work.
A positive LMIA -- sometimes referred to as a confirmation letter -- indicates that the employer has demonstrated a legitimate need. Once the employer receives a positive LMIA, the foreign worker can apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC).
When Is an LMIA Required?
An LMIA is required for most employer-specific work permits in Canada. However, there are important exceptions. You do not need an LMIA for:
- Open work permits: Such as those issued to spouses of skilled workers, Post-Graduation Work Permit (PGWP) holders, or Bridging Open Work Permit holders
- LMIA-exempt work permits: Including those under international agreements (such as CUSMA/USMCA for intra-company transferees), the International Mobility Program, or certain provincial nominee programs
- International Experience Canada (IEC): Working holiday permits for eligible countries
The LMIA Application Process
Step 1: The Employer Advertises the Position
Before applying for an LMIA, the employer must make reasonable efforts to recruit Canadians and permanent residents. This includes advertising the job for at least four weeks on the Government of Canada's Job Bank and using at least two additional recruitment methods appropriate for the occupation. The employer must demonstrate that they offered wages, working conditions, and benefits consistent with the prevailing rate for the occupation in the region.
Step 2: The Employer Submits the LMIA Application
The employer submits the LMIA application to ESDC, including evidence of recruitment efforts, details about the job offer, a transition plan (for high-wage positions), and the required processing fee of CAD $1,000 per position. The application must include detailed information about the business, the position, and the foreign worker being recruited.
Step 3: ESDC Reviews the Application
ESDC evaluates the application based on several factors:
- Whether the employer made adequate recruitment efforts
- The wages and working conditions offered
- Whether the position is genuine
- The potential impact on the Canadian labour market
- Whether the employer has a plan to transition to a Canadian workforce (for high-wage positions)
Step 4: LMIA Decision
If approved, the employer receives a positive LMIA along with a confirmation number. The employer provides a copy of the positive LMIA and the job offer to the foreign worker, who then uses these documents to apply for a work permit.
Step 5: Work Permit Application
The foreign worker applies for a work permit through IRCC, submitting the positive LMIA, the job offer letter, and other required documentation. The work permit is employer-specific, meaning the worker can only work for the employer named on the LMIA.
High-Wage vs. Low-Wage LMIA Streams
ESDC classifies LMIA applications based on whether the offered wage is at or above the provincial or territorial median hourly wage (high-wage stream) or below it (low-wage stream). The requirements differ between the two streams:
High-Wage Stream
- The employer must submit a Transition Plan outlining how they will reduce reliance on temporary foreign workers over time
- There is no cap on the proportion of temporary foreign workers at the worksite
- The work permit duration can be up to three years
Low-Wage Stream
- The employer must comply with a cap on the number of low-wage temporary foreign workers (generally 10% or 20% of the workforce, depending on the sector)
- The employer must cover round-trip transportation costs for the worker
- The employer must ensure affordable housing is available
- The work permit duration is typically limited to one year in most cases
LMIA Processing Times
Standard LMIA processing times vary but typically range from several weeks to a few months. However, certain categories qualify for expedited processing:
- Global Talent Stream: Processed within two weeks for qualifying occupations in technology and innovation
- Seasonal Agricultural Worker Program: Priority processing for agricultural workers
- Top 10% wage earners: May qualify for faster processing in some cases
Common Reasons for LMIA Refusals
Understanding why LMIAs are refused can help employers prepare stronger applications:
- Insufficient recruitment efforts: Not advertising for the required duration or not using enough recruitment methods
- Below-market wages: Offering wages below the prevailing rate for the occupation and region
- Inadequate transition plan: For high-wage positions, failing to demonstrate a credible plan to hire Canadians
- Concerns about the genuineness of the job offer: ESDC may question whether the position truly exists or is necessary
- Non-compliance history: Previous violations of the Temporary Foreign Worker Program conditions
LMIA and Express Entry: The 50-200 Point Bonus
A positive LMIA does more than enable a work permit -- it can also significantly boost your Express Entry CRS score. A valid job offer supported by a positive LMIA adds 50 CRS points for most TEER 0, 1, 2, or 3 occupations, and 200 points for TEER 0 major group 00 (senior management) positions. This can be the difference between receiving an Invitation to Apply and remaining in the pool.
LMIA-Exempt Alternatives
Not all work permits require an LMIA. The International Mobility Program (IMP) encompasses several LMIA-exempt categories:
- Intra-Company Transfers: For employees being transferred within a multinational company
- CUSMA/USMCA professionals: For qualifying professionals from the United States and Mexico
- Reciprocal employment agreements: Under various international agreements
- Significant benefit to Canada: Work that provides clear cultural, social, or economic benefits
Tips for Employers
- Start the recruitment process early -- the advertising requirements alone take at least four weeks
- Document every step of your recruitment efforts meticulously
- Ensure the wages offered match or exceed the prevailing rate listed on the Government of Canada's Job Bank
- Prepare a detailed and realistic transition plan for high-wage positions
- Consider whether an LMIA-exempt category might apply to your situation
Tips for Foreign Workers
- Verify that the employer has a positive LMIA before applying for a work permit
- Ensure the job offer details match the LMIA exactly
- Understand that your work permit will be employer-specific -- you cannot work for a different employer without a new permit
- Keep copies of all your employment documents and the LMIA confirmation
- Know your rights under Canadian employment law, including minimum wage, hours of work, and workplace safety standards
How Imigrando Can Help
The LMIA process involves detailed requirements for both employers and foreign workers. At Imigrando, we assist employers in preparing and submitting LMIA applications and help foreign workers navigate the work permit process. Whether you are an employer looking to hire internationally or a worker seeking to come to Canada, our team can guide you through the process efficiently and effectively. Contact us to discuss your specific situation.