LMIA Process Explained for Employers

Understanding the LMIA Process for Employers in Canada

If you are an employer in Canada and want to hire a temporary foreign worker, you will almost certainly need to obtain a Labour Market Impact Assessment (LMIA) before that worker can apply for a work permit. The LMIA process is managed by Employment and Social Development Canada (ESDC) and is designed to ensure that hiring a foreign worker will not negatively affect the Canadian labour market.

This guide walks you through every step of the process, from understanding what an LMIA is to submitting a successful application.

What Is an LMIA?

A Labour Market Impact Assessment is a document issued by ESDC that confirms there is a need for a foreign worker to fill a specific job in Canada. A positive LMIA (sometimes called a confirmation letter) shows that no Canadian citizen or permanent resident is available to do the job. Once an employer receives a positive LMIA, the foreign worker can then apply for a work permit.

Why Does the LMIA Exist?

The Canadian government wants to ensure that employers make genuine efforts to recruit Canadians and permanent residents before looking abroad. The LMIA process acts as a safeguard for the domestic labour market. It protects Canadian workers from being displaced and ensures that foreign workers are offered fair wages and working conditions.

Step-by-Step Guide to the LMIA Process

Step 1: Determine If You Need an LMIA

Not all work permits require an LMIA. Some positions are LMIA-exempt, such as those under international trade agreements (CUSMA, CETA) or intra-company transfers. Check with ESDC or visit the official ESDC foreign workers page to confirm whether your situation requires an LMIA.

Step 2: Register for a Job Bank Account

Before applying for an LMIA, most employers are required to advertise the job on the Government of Canada's Job Bank for at least 28 consecutive days. This ensures that Canadians and permanent residents have an opportunity to apply for the position first.

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See also: How to Apply for Canadian Permanent Residence

Step 3: Conduct Recruitment Efforts

In addition to posting on Job Bank, you must advertise the position using at least two other recruitment methods that are consistent with the occupation. These can include:

• Online job boards (e.g., Indeed, LinkedIn, Workopolis)
• Provincial or territorial job boards
• Newspapers (local, regional, or national)
• Industry-specific recruitment websites
• Job fairs or campus recruitment events

You must keep detailed records of all recruitment efforts, including copies of job advertisements, dates they ran, the number of applicants, and reasons for not hiring any Canadian applicants.

See also: Indeed Canada Job Search Guide

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Step 4: Determine the Prevailing Wage

Employers must offer a wage that meets or exceeds the prevailing wage for the occupation in the specific work location. You can find prevailing wage information on the Job Bank website by searching for your occupation and region. Offering a wage below the prevailing rate will result in your LMIA application being refused.

Step 5: Prepare and Submit the LMIA Application

The LMIA application form (EMP 5593 for high-wage positions or EMP 5627 for low-wage positions) must be completed and submitted to ESDC along with supporting documents. Key documents include:

• Proof of business legitimacy (business registration, tax filings)
• A detailed job offer letter
• Evidence of recruitment efforts
• A transition plan (for high-wage positions) outlining how you will reduce reliance on temporary foreign workers over time
• Proof that the offered wage meets the prevailing wage

The application fee is $1,000 CAD per position requested. This fee is non-refundable, even if the LMIA is denied.

Step 6: Wait for Processing

Processing times vary depending on the stream and the volume of applications. As of early 2026, standard processing times range from several weeks to several months. You can check current processing times on the ESDC website. Some positions may qualify for expedited processing (for example, the 10-business-day processing for the Global Talent Stream).

Step 7: Receive the LMIA Decision

If your application is approved, you will receive a positive LMIA along with a confirmation number. You must provide this confirmation number and a copy of the positive LMIA to the foreign worker so they can include it with their work permit application. A positive LMIA is typically valid for six months from the date of issuance. If the worker does not apply for a work permit within that window, the LMIA expires.

LMIA Streams and Categories

High-Wage Stream

This applies to positions where the offered wage is at or above the provincial or territorial median hourly wage. Employers in this stream must submit a transition plan explaining how they will move toward hiring Canadians over time.

Low-Wage Stream

This applies to positions where the offered wage is below the provincial or territorial median hourly wage. Additional requirements apply, including a cap on the proportion of temporary foreign workers at your worksite and the obligation to cover certain costs for the worker (such as round-trip transportation, housing, and private health insurance).

Global Talent Stream

This is a fast-track stream under the Temporary Foreign Worker Program designed for highly skilled workers in certain technology and STEM occupations. Processing time is typically 10 business days. Employers must work with a designated referral partner and commit to creating lasting benefits for Canadians (such as job creation or skills transfer).

Agricultural Streams

There are specific LMIA streams for seasonal and primary agriculture, including the Seasonal Agricultural Worker Program (SAWP). These streams have their own rules around wages, housing, and contract duration.

Common Mistakes Employers Make

Many LMIA applications are refused or delayed because of avoidable errors. Here are some of the most common mistakes:

• Insufficient recruitment efforts: Not advertising for the required 28 days, or using methods that do not target the appropriate audience for the occupation.
• Offering below the prevailing wage: Always verify the current prevailing wage before submitting your application.
• Incomplete documentation: Missing business registration documents, unsigned offer letters, or incomplete transition plans.
• Poorly written job descriptions: The job description must clearly outline the duties, qualifications, and working conditions. Vague descriptions raise red flags.
• Not keeping records: ESDC may ask for proof of every recruitment step. Keep copies of all advertisements, applicant resumes, and interview notes.

What Happens After a Positive LMIA?

Once you receive a positive LMIA, the foreign worker must apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC). They will need to include the LMIA confirmation number in their application. If they are outside Canada, they will apply at a visa office abroad. If they are already in Canada with valid status, they may be able to apply online.

As an employer, you are also subject to compliance inspections. ESDC can inspect your workplace to ensure that you are meeting the conditions outlined in the LMIA, including the wage, working conditions, and the occupation itself. Penalties for non-compliance can include fines of up to $100,000 per violation and a ban from the Temporary Foreign Worker Program.

Costs and Fees

Here is a summary of costs associated with the LMIA process:

• LMIA application fee: $1,000 per position
• Recruitment advertising costs: Variable (depends on platforms used)
• Legal or consultant fees: Optional, but many employers hire a Regulated Canadian Immigration Consultant (RCIC) or lawyer to assist with the application
• Low-wage stream employer obligations: Round-trip transportation, suitable housing, and private health insurance for the worker

Tips for a Successful LMIA Application

To maximize your chances of receiving a positive LMIA, follow these practical tips:

1. Start your recruitment efforts early. The 28-day advertising requirement can delay your timeline if you do not plan ahead.
2. Document everything. Keep a recruitment log with dates, platforms, number of applicants, and reasons each Canadian applicant was not hired.
3. Use the correct prevailing wage. Double-check on Job Bank before setting the salary.
4. Write a thorough job description that matches the National Occupational Classification (NOC) code for the position.
5. Consider hiring a licensed immigration consultant or lawyer, especially if you are new to the process.
6. Monitor your application status and respond promptly to any requests from ESDC for additional information.

Where to Get Help

For official information and forms, visit the ESDC LMIA page. You can also contact the ESDC Employer Contact Centre at 1-800-367-5693 (TTY: 1-800-926-9105) for assistance with your application. If you need legal help, consult a Regulated Canadian Immigration Consultant (RCIC) or an immigration lawyer licensed in your province.

The LMIA process can seem complex, but with careful preparation and thorough documentation, employers can successfully navigate it. Start early, follow the rules, and keep detailed records of every step.