What Is an LMIA? Work Permits and Labour Market Impact Assessments in Canada
By WelcomeAide Team
Quick Summary
- An LMIA is a document that a Canadian employer must obtain before hiring a foreign worker for most work permit categories
- The LMIA confirms that no Canadian citizen or permanent resident is available to fill the job
- Employers pay a $1,000 processing fee per position for most LMIA applications
- Some work permits are LMIA-exempt, including those under CUSMA, IEC, spousal open work permits, and intra-company transfers
- A positive LMIA can add 50 or 200 CRS points to an Express Entry profile
- Processing times range from a few weeks to several months depending on the stream
What Is a Labour Market Impact Assessment?
A Labour Market Impact Assessment, commonly called an LMIA, is a document that a Canadian employer needs before they can hire a foreign worker. The LMIA is issued by Employment and Social Development Canada (ESDC), the federal department responsible for labour market policy.
The purpose of the LMIA is to assess whether hiring a foreign worker will have a positive or neutral effect on the Canadian labour market. In simple terms, ESDC wants to confirm that there is no Canadian citizen or permanent resident who is available and qualified to do the job. If the assessment determines that hiring a foreign worker is justified, the employer receives a positive LMIA (sometimes called a confirmation letter). The foreign worker then uses this positive LMIA to apply for a work permit through IRCC.
It is important to understand that the LMIA is the employer's responsibility, not the worker's. The employer applies for and pays for the LMIA. However, as a worker, understanding the LMIA process helps you know your rights and understand how your work permit connects to your immigration pathway.
How the LMIA Process Works
Step 1: The Employer Advertises the Position
Before applying for an LMIA, the employer must demonstrate that they tried to recruit Canadians and permanent residents for the position. ESDC requires the employer to advertise the job for a minimum of four weeks using at least three different recruitment methods, including posting the position on the Government of Canada's Job Bank.
The employer must also offer wages and working conditions that meet or exceed the prevailing wage for the occupation and region. This prevents employers from using foreign workers to undercut Canadian wages.
Step 2: The Employer Submits the LMIA Application
After the recruitment period, the employer submits the LMIA application to ESDC. The application includes details about the position, the recruitment efforts, the wage offered, and information about the business. The employer must also pay a processing fee of $1,000 per position.
Step 3: ESDC Reviews the Application
ESDC reviews the application and evaluates several factors:
- Whether the employer made sufficient efforts to recruit Canadians
- Whether the wage offer meets the prevailing rate
- Whether hiring the foreign worker will create or maintain jobs for Canadians
- Whether the foreign worker will fill a genuine labour shortage
- Whether the employer has a history of compliance with immigration and labour laws
Step 4: LMIA Decision
If ESDC is satisfied, they issue a positive LMIA. If the application does not meet the requirements, the employer receives a negative LMIA, and the foreign worker cannot use it to apply for a work permit.
Step 5: Worker Applies for a Work Permit
Once the employer receives a positive LMIA, they provide the LMIA number to the foreign worker. The worker then applies to IRCC for a work permit, including the LMIA number in their application. The work permit is tied to the specific employer and position listed on the LMIA.
Important:
An LMIA-based work permit is employer-specific. This means you can only work for the employer named on your work permit, in the position and location specified. If you want to change employers, your new employer will generally need to obtain a new LMIA, and you will need a new work permit. For more on work permits, see our complete guide to Canadian work permits.
LMIA Streams and Categories
ESDC processes LMIAs under different streams depending on the type of position and wage level.
High-Wage Positions
If the offered wage is at or above the provincial or territorial median hourly wage, the position is classified as high-wage. For high-wage positions, the employer must submit a transition plan outlining steps to reduce their reliance on temporary foreign workers over time. The median hourly wage in British Columbia is approximately $28.85 as of 2026.
Low-Wage Positions
Positions with wages below the provincial median are classified as low-wage. Additional conditions apply, including caps on the proportion of temporary foreign workers an employer can hire and requirements for the employer to provide or assist with housing, transportation, and health insurance.
Global Talent Stream
The Global Talent Stream (GTS) is a fast-track LMIA process for highly skilled workers in specific technology and STEM occupations. Processing times are typically two weeks. The GTS has two categories:
- Category A: For workers referred by a designated referral partner (such as a provincial innovation agency)
- Category B: For workers in occupations on the Global Talent Occupations List, which includes roles like software engineers, data scientists, and cybersecurity specialists
Agricultural Stream
This stream covers positions in primary agriculture, including farm workers and livestock labourers. It has specific requirements related to seasonal work and accommodation.
Permanent Residence Stream
This LMIA category is specifically for supporting a foreign worker's permanent residence application through Express Entry or a Provincial Nominee Program. A positive LMIA under this stream adds CRS points to an Express Entry profile.
| LMIA Stream | Typical Processing Time | Fee |
|---|---|---|
| High-Wage | 8 to 12 weeks | $1,000 per position |
| Low-Wage | 8 to 12 weeks | $1,000 per position |
| Global Talent Stream | 2 weeks (target) | $1,000 per position |
| Agricultural Stream | 4 to 8 weeks | $1,000 per position |
| Permanent Residence | 8 to 16 weeks | $1,000 per position |
LMIA-Exempt Work Permits
Not all work permits require an LMIA. There are several categories where foreign workers can obtain a work permit without their employer needing to go through the LMIA process. These are known as LMIA-exempt work permits.
International Mobility Program (IMP)
The International Mobility Program covers work permits that are exempt from the LMIA requirement. Employers still need to submit an offer of employment through the IRCC Employer Portal and pay a $230 compliance fee, but they do not need an LMIA.
Common LMIA-Exempt Categories
| Category | Description |
|---|---|
| CUSMA (formerly NAFTA) | Professionals, intra-company transferees, and traders/investors from the US and Mexico under the Canada-United States-Mexico Agreement |
| Intra-Company Transfers (ICT) | Employees being transferred to a Canadian office from a related foreign company in an executive, senior managerial, or specialized knowledge role |
| International Experience Canada (IEC) | Young people (18-35, depending on country) from countries with bilateral youth mobility agreements with Canada |
| Spousal Open Work Permit | Spouses or common-law partners of skilled workers or international students at designated learning institutions |
| Post-Graduation Work Permit (PGWP) | International graduates of eligible Canadian post-secondary institutions |
| Bridging Open Work Permit (BOWP) | Workers whose work permit is expiring and who have submitted a permanent residence application |
| Francophone Mobility | French-speaking foreign workers taking a job outside Quebec |
Did you know?
Open work permits, such as spousal open work permits and post-graduation work permits, allow you to work for any employer in Canada in any position. They are not tied to a specific job or employer, giving you flexibility to change jobs or work for multiple employers.
Employer Responsibilities
Employers who hire foreign workers through the LMIA process have specific legal obligations:
- Pay the wages stated on the LMIA: The employer must pay the foreign worker the same wage listed on the LMIA application. Paying less is a violation
- Provide the same working conditions: Working conditions must match what was described in the LMIA application
- Comply with federal and provincial labour laws: Employers must follow all applicable employment standards, health and safety regulations, and human rights legislation
- Keep records: Employers must keep employment records for six years and make them available for inspection
- Not charge the worker for the LMIA fee: The $1,000 LMIA fee is the employer's cost. It is illegal for employers to pass this cost on to the worker
Important:
If your employer is not meeting the conditions of your LMIA or is violating your employment rights, you can report them confidentially. ESDC conducts inspections and can penalize non-compliant employers, including banning them from hiring foreign workers. You can report concerns through the ESDC confidential tip line. Your immigration status is protected when you report abuse.
How an LMIA Affects Your Path to Permanent Residence
An LMIA can play an important role in your journey to Canadian permanent residence through Express Entry. A valid job offer supported by a positive LMIA adds CRS points to your Express Entry profile:
- TEER 0 (management) occupation: 200 additional CRS points
- TEER 1, 2, or 3 occupation: 50 additional CRS points
These additional points can make a significant difference in whether you receive an Invitation to Apply. For a full breakdown of how CRS scoring works, read our Express Entry complete guide.
Additionally, an LMIA-based job offer can support a Provincial Nominee Program application. For example, having a valid job offer from a BC employer strengthens your BC PNP application, even though the BC PNP itself does not require an LMIA.
LMIA Processing Fees and Costs
Here is a breakdown of the costs involved in the LMIA and work permit process:
| Item | Cost | Paid By |
|---|---|---|
| LMIA application fee | $1,000 per position | Employer |
| IMP employer compliance fee (LMIA-exempt) | $230 per position | Employer |
| Work permit application fee | $155 | Worker |
| Open work permit holder fee | $100 | Worker |
| Biometrics fee | $85 | Worker |
Common Questions About LMIAs
Can I apply for an LMIA myself?
No. The LMIA application is submitted by the employer, not the worker. The employer is responsible for the application, the recruitment process, and the fees.
How long is a positive LMIA valid?
A positive LMIA is valid for six months from the date it is issued. The foreign worker must apply for their work permit within this six-month window.
Can I change employers with an LMIA-based work permit?
Generally, no. An LMIA-based work permit is employer-specific. If you want to work for a different employer, the new employer typically needs to obtain a new LMIA, and you need to apply for a new work permit. However, there are some exceptions and pathways that allow for greater flexibility.
What if my employer threatens to cancel my LMIA?
Your employer cannot use your immigration status to intimidate, coerce, or exploit you. If you are experiencing workplace abuse, contact ESDC's confidential tip line or reach out to a settlement agency for support. You can also get guidance from our AI Newcomer Navigator.
Finding Employment and Navigating the LMIA Process
If you are looking for work in Canada, understanding the LMIA process helps you identify employers who are willing and able to sponsor foreign workers. Some tips for your job search:
- Look for employers who have previously hired foreign workers. The Job Bank flags positions that are open to foreign workers
- Target occupations in high demand, particularly those on the Global Talent Occupations List or in sectors with known labour shortages
- Consider working with a regulated immigration consultant (RCIC) or lawyer who can advise on the LMIA process and your options
- Build your Canadian network through professional associations, LinkedIn, and settlement agency employment programs
For more job search strategies, read our newcomer guide to finding a job in Canada.
Get Help With Your Work Permit and Immigration
The LMIA process can seem complex, but understanding how it works empowers you to make informed decisions about your immigration pathway. Whether you are a worker looking to come to Canada or already here on a temporary permit, knowing your rights and options is the first step toward a successful outcome.
WelcomeAide provides free settlement support to help newcomers navigate Canadian immigration. Our AI Newcomer Navigator can answer your questions about LMIAs, work permits, and permanent residence in your preferred language. Learn about our mission, explore our programs, check our impact, or browse more newcomer guides on our blog.