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LMIA: Labour Market Impact Assessment Guide

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LMIA: Labour Market Impact Assessment Guide
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What Is an LMIA?

A Labour Market Impact Assessment (LMIA) is a document that a Canadian employer needs before hiring a foreign worker. A positive LMIA shows that there is a need for a foreign worker and no Canadian worker is available to do the job.

The LMIA is often called a "confirmation letter" — it confirms the employer's need for a temporary foreign worker.


How the LMIA Process Works

StepWhoDetails
1. Job offerEmployerEmployer offers a position to a foreign worker
2. Recruitment effortEmployerMust prove they tried to hire Canadians first
3. LMIA applicationEmployerApplies to Employment and Social Development Canada (ESDC)
4. ESDC reviewGovernmentAssesses labor market impact
5. LMIA issuedGovernmentPositive or negative decision
6. Work permit applicationWorkerUses positive LMIA to apply for work permit

LMIA Types

StreamWage LevelKey Features
High-wageAt or above provincial medianTransition plan required
Low-wageBelow provincial medianCap on percentage of TFWs
Global Talent StreamSpecialized tech/R&D2-week processing
AgricultureFarm workersSeasonal or year-round
CaregiverHome childcare/elderlySpecial requirements
Permanent residenceFor Express Entry+50 or +200 CRS points

Employer Requirements

RequirementDetails
Business legitimacyGenuine, operational Canadian business
RecruitmentAdvertised position for minimum 4 weeks on Job Bank + 2 other sources
WagesMust offer prevailing wage for the occupation and region
Working conditionsMust meet Canadian labor standards
Transition plan(High-wage) Plan to reduce reliance on TFWs
Application fee$1,000 per position

LMIA for Permanent Residence

A positive LMIA can boost your Express Entry CRS score:

LMIA TypeCRS Points
LMIA for NOC TEER 0 or 1+200 CRS points
LMIA for NOC TEER 2 or 3+50 CRS points
LMIA for NOC TEER 4 or 5+50 CRS points

Processing Times

StreamTypical Processing
High-wage2–4 months
Low-wage2–4 months
Global Talent Stream2 weeks
Agriculture1–3 months
PR-supporting LMIA2–4 months

Fees

FeeAmount
LMIA application (employer)$1,000 per worker
Compliance feeIncluded
Work permit (worker)$155

Tips

  1. The employer pays for LMIA — it is illegal for the worker to pay the $1,000 fee
  2. Recruitment proof is key — ESDC scrutinizes this heavily
  3. Get prevailing wage — underpaying leads to rejection
  4. Global Talent Stream — if eligible, much faster processing
  5. LMIA for PR — a positive LMIA gives +50 to +200 CRS points
  6. Beware of scams — some employers charge workers for LMIA (illegal)

Source: ESDC — LMIA

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