1. Introduction: What is a Labour Market Impact Assessment (LMIA)?
A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that allows Canadian employers to hire foreign workers through the Temporary Foreign Worker Program (TFWP).
The LMIA confirms that:
- There is a genuine need for a foreign worker to fill the position.
- No qualified Canadian citizen or permanent resident is available to do the job.
A positive LMIA (also known as a “confirmation letter”) permits the foreign worker to apply for a Canadian work permit.
2. When is an LMIA Required?
An LMIA is required for most positions under the Temporary Foreign Worker Program (TFWP). Employers need it for:
- High-Wage Positions – Jobs paying above the provincial or territorial median wage.
- Low-Wage Positions – Jobs paying below the median wage.
- Agricultural Workers – Farm and food production roles.
- Seasonal or Caregiver Workers – Includes live-in caregivers and nannies.
However, not all foreign workers need an LMIA. Some are exempt under the International Mobility Program (IMP) — such as intra-company transferees or workers covered by trade agreements like CETA or CUSMA.
3. Eligibility Requirements for Employers
To qualify for an LMIA, employers must prove that hiring a foreign worker will not negatively affect the Canadian labour market.
Employers must:
✅ Provide a genuine job offer — The position must be legitimate and full-time.
✅ Demonstrate recruitment efforts — Employers must show they attempted to hire Canadian workers first.
✅ Offer fair wages — Wages must meet or exceed local median rates.
✅ Provide safe working conditions — Workplaces must comply with Canadian labour standards.
✅ Submit a transition plan (for high-wage roles) — Showing how the employer plans to hire or train Canadians in the future.
4. Types of LMIA Applications
There are several LMIA categories depending on the position and wage level:
A. High-Wage LMIA
For roles paying at or above the median wage.
- Requires a transition plan outlining how the employer will reduce reliance on foreign workers.
B. Low-Wage LMIA
For jobs below the median wage.
- Employers must provide accommodations (if needed).
- There are limits on how many low-wage foreign workers a business can hire.
C. Agricultural LMIA
For agricultural production jobs, such as farm workers and livestock handlers.
- Includes the Seasonal Agricultural Worker Program (SAWP).
- Streamlined process with fewer recruitment requirements.
D. Caregiver LMIA
For live-in caregivers, home support workers, and nannies.
- Must be full-time positions.
- Employers need to prove the necessity of in-home care.
E. Global Talent Stream (GTS)
A fast-track LMIA stream under the TFWP for highly skilled workers in tech and innovation sectors.
- 2-week processing time.
- Designed for positions in-demand or critical to innovation.
5. Step-by-Step Guide to the LMIA Application Process
Step 1: Check if You Need an LMIA
Confirm whether your job offer falls under the TFWP and determine which LMIA category applies.
Step 2: Meet Recruitment Requirements
Employers must:
- Advertise the job on the Canada Job Bank.
- Use at least two additional recruitment methods (e.g., LinkedIn, industry websites).
- Advertise for at least 4 consecutive weeks before applying.
Step 3: Complete the LMIA Application Form
Download the relevant application form from the ESDC website.
Provide details about:
- The job offer and duties.
- Wages, working hours, and location.
- Recruitment efforts and business information.
Step 4: Submit Supporting Documents
Attach:
- Proof of recruitment and job advertisements.
- Business registration documents.
- Wage justification.
- Transition plan (for high-wage roles).
- Financial statements (to prove ability to pay wages).
Step 5: Pay the LMIA Fee
- Fee: CAD $1,000 per position.
- Exemptions: Some agricultural and caregiving roles.
- Payment must be included with the application.
Step 6: Wait for Processing
- Standard LMIAs: 8–29 business days.
- Global Talent Stream: 2 weeks.
Step 7: Receive the LMIA Decision
- A positive LMIA allows the worker to apply for a work permit.
- A negative LMIA means the employer must review and resubmit their application.
6. LMIA Fees and Additional Costs
| Type of Cost | Amount | Notes |
|---|---|---|
| LMIA Application Fee | CAD $1,000 per position | Required for most applications |
| Advertising/Recruitment | Variable | Employers must advertise for 4 weeks |
| Legal/Consulting Fees | CAD $1,000–$3,000 | Optional professional assistance |
| Worker Accommodation (if applicable) | Variable | Required for some low-wage/agriculture jobs |
7. LMIA Processing Times (2024 Estimates)
| LMIA Type | Processing Time |
|---|---|
| High-Wage / Low-Wage Positions | 8–10 weeks |
| Agricultural Workers | 2–3 weeks |
| Global Talent Stream (GTS) | 2 weeks |
| Caregiver Positions | 6–12 weeks |
Processing times vary based on province, demand, and completeness of the application.
8. LMIA Results: Positive vs Negative
✅ Positive LMIA
- Also called a confirmation letter.
- Allows the foreign worker to apply for a work permit.
❌ Negative LMIA
- Issued if ESDC determines a Canadian could fill the role or if requirements weren’t met.
- Employers can reapply after addressing issues, but there’s no appeal process.
9. After LMIA Approval: Applying for a Work Permit
Once the LMIA is approved, the foreign worker can apply for a Canadian work permit through:
- The IRCC online portal, or
- A Canadian visa office abroad.
Required documents include:
- A copy of the positive LMIA.
- Employment contract and job offer letter.
- Passport, photo ID, and other supporting documents.
The work permit typically allows employment for 1–3 years, depending on the job offer and program type.
10. Frequently Asked Questions (FAQs)
Q1: How long is an LMIA valid for?
A positive LMIA is usually valid for 6 months. The foreign worker must apply for a work permit within this timeframe.
Q2: Can an LMIA be appealed if denied?
No. However, employers can review the reasons for refusal, make corrections, and reapply.
Q3: Is the LMIA fee refundable?
No. The CAD $1,000 fee is non-refundable, even if the LMIA is refused.
Q4: Do all foreign workers need an LMIA?
No. Workers under the International Mobility Program (IMP), including those covered by trade agreements or company transfers, are exempt.
Q5: How long does an LMIA-based work permit last?
Typically 1–3 years, depending on the employment terms. Renewal may require a new LMIA.
11. Conclusion
Applying for a Labour Market Impact Assessment (LMIA) is a key step for Canadian employers hiring foreign workers. A well-prepared application demonstrates genuine need, fair wages, and compliance with Canadian labour standards.
By understanding LMIA types, eligibility criteria, and the step-by-step process, employers can improve their approval chances and hire skilled global talent efficiently.
💼 Tip: Consult an immigration lawyer or licensed consultant to ensure full compliance with LMIA requirements and to streamline your application.
For expert assistance with LMIA applications, immigration compliance, or work permit guidance,
contact Martin Taggart — your trusted immigration and employment law partner.