Labour Market Impact Assessment

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) assessing the impact of hiring a foreign national in Canada. A positive LMIA indicates that there is no Canadian citizen or permanent resident to fill a position, therefore enabling an employer to hire a foreign national. A negative LMIA indicates that a position should be filled by a Canadian citizen or permanent resident.

A foreign national cannot apply for an LMIA. Rather, LMIAs are documents which must be applied for by a Canadian employer. While sometimes it is possible to hire a foreign worker who is exempt from needing an LMIA, or who is exempt from requiring a work permit, all streams of Canada’s Temporary Foreign Worker Program (TFWP) require that an employer obtain an LMIA in order to hire outside of Canada. As well, many of Canada’s immigration pathways to permanent residency require that applicants show a positive LMIA in order to claim points for a Canadian job offer.

LMIA Application Requirements

LMIA applications are submitted in hard copy, by mail, to the appropriate Service Canada Processing Centre. Applications must include evidence that the following criteria have been met:

Processing Fee: All applications for LMIAs include a $1000 CAD processing fee which will not be refunded even if the result is negative. Certain applicants under the LMIAs for in-home caregivers may be exempt from this fee.
Business Legitimacy Documents: Documents proving that the employer’s status as a legitimate Canadian business.
Transition Plan: Employers must submit a plan for how they intend to address the need to hire foreign nationals. Eventually, employers are expected to hire Canadian citizens and permanent residents rather than TFWs.
Recruitment Efforts: Employers must submit evidence that they made substantial efforts to recruit Canadian citizens and permanent residents to fill the position prior to hiring a TFW.
Wages: Applications must include information regarding the TFWs wages. This will differentiate the high-wage positions from low-wage positions and ensure that TFWs are paid the same amount for labour as their Canadian equals.
Workplace Safety: TFWs are entitled to the same standards of workplace health and safety as Canadians in the same position. For this reason, employers must provide evidence that TFWs will be covered by insurance which is at minimum equivalent to the health coverage offered by the province or territory where the business is located.

What happens when LMIA is approved?

After an LMIA application has been processed, employers will be issued a decision. If the employer is issued a positive LMIA, they can proceed with hiring a foreign national. If a negative LMIA is issued then unfortunately the employer is not approved to hire a foreign national.

Positive LMIAs are valid for 6 months from the date of issue. After receiving a positive LMIA, the employer must notify the foreign national so that they can apply for their work permit or permanent residence. In certain conditions, employers may apply to have their LMIA application processed in 10 days. To qualify for expedited processing, an employer must be located outside of Quebec and meet one of the following requirements:

Highest Wage Positions

top 10% of wages earned by Canadians in the province/territory of the job

Skilled Trades

paid at least the median provincial/territorial wage for the position

Short-Term Positions

120 days or less

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Labour Market Impact Assessment