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Labour Market Impact Assessment (LMIA)

Canadian employers may need to obtain a Labour Market Impact Assessment (LMIA) document before employing foreign nationals in certain positions. LMIA is issued by Employment and Social Development Canada (ESDC). LMIA assesses the foreign labour required for a particular work and its effects on the Canadian labour market.

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A positive LMIA document or confirmation letter establishes that the Canadian employer could not find and recruit suitable citizens or residents in Canada for the work and, therefore, requires foreign employees for the specific jobs.

The foreign worker can proceed with their work permit application after receiving the LMIA issued to the employer. It must be noted that LMIA is not mandatory for all foreign workers and comes with exceptions to certain occupations.

LMIA – Important Points

Only an employer can apply for LMIA. An employee cannot apply for LMIA.
LMIA application process and requirements can vary as per the province and according to the type and wage of the work.
Each job position has an application processing fee of $1,000 unless exempted.
Before applying for LMIA, the employer has to determine whether the job position comes under high-wage or low-wage categories. There are also separate LMIA for agricultural workers, in-home givers, etc.
Once LMIA is issued, a foreign worker has six months to apply for a work permit.

What does a positive LMIA mean?

A positive LMIA means that the employer in Canada can hire foreign workers since no Canadian citizen or permanent resident is eligible enough to work in the job position and that there is a sincere need for a foreign worker to fill that particular job position. Once the employer gets the positive LMIA, they can hire the employees. The employees then must apply for work permits. As a leading immigration consultancy, ImmiLaw Global our Immigration Lawyers can help employers obtain the LMIA and employees get a work permit.

Factors considered by ESDC while processing LMIA applications

There are different determining factors that the ESDC looks into to decide whether to issue a positive LMIA. They are:

Assess whether any citizens or permanent residents in Canada are ready to get employed in the specific job role.
The employer should have tried all possible means to employ a worker from Canada.
The working conditions for the position should be according to the labour standards in Canada.
The wages offered should be on par with the average regional salary of the particular job.
Assess whether there are any labour disputes in the industry to which the job belongs.
The advantages and effects on the Canadian economy and the labour market on hiring a worker from a foreign country are also considered by ESDC. For instance, will the foreign worker contribute by sharing skills /knowledge and creating more jobs in Canada?

Our foreign immigration lawyers and consultants are happy to help you. Feel free to contact us.

What are the LMIA criteria employers should follow?

The employer should have a valid and legitimate job offer.
The business of the employer must be legitimate, offering goods or services.
The employer should not have laid off any workers within the previous one year prior to submitting the application.
Recruitment activities for finding Canadian workers for specific jobs must have been conducted before applying for LMIA.
The employer should meet the labour standards in Canada for the wages and working conditions of the specific job.
According to the program stream, the employer should check LMIA eligibility and meet its requirements.

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High-Wage and Low-Wage Jobs

LMIA (Labour Market Impact Assessment) for high-wage and low-wage jobs have different application processes and criteria. The employer must consider the job type and categorize the job into the correct category before applying for the LMIA.

Jobs that come under the high-wage LMIA category are jobs that are given wages equal to or more than the median hourly provincial or territorial wages. Low-wage LMIA category jobs are those given wages below the median hourly provincial or territorial wages.

Under low-wage LMIA, the employer should hire workers from two of the four underrepresented groups, which are disabled people, newcomers, vulnerable youth, and indigenous individuals. This does not apply to high-wage LMIA. For low-wage jobs, employers must invite to apply for the specific job, individuals with two or more stars in the Job Bank (service for matching the jobs). On the other hand, for high-wage jobs, employers must invite to apply for the specific job, individuals with four or more stars in the Job Bank.

The number of temporary foreign employees an employer can hire for low-wage LMIA is 10%. There is no cap on the number of employees an employer can employ for high-wage LMIA.

Employers opting for a high-wage LMIA have to prepare a transition plan showing that the employer will minimize the number of foreign employees in the future. It does not apply to low-wage LMIA.

Processing Time of LMIA

There is no fixed processing time for LMIA. It can take weeks and even months, according to the application type and the number of applications received. However, the employer can reduce the time by submitting the application without mistakes and taking care of all documentation requirements.

ESDC has pledged a maximum of 10 business days as LMIA processing time for certain occupation types. They are the highest-demand occupations / skilled trades, highest-paid occupations, and short-duration occupations (for 120 days or below).

When is LMIA not required?

Open work permits and LMIA-exempt work permits

There is no need to submit LMIA for open work permits and LMIA-exempt work permits. An open work permit is only given to individuals belonging to specific categories, like applicants of the Atlantic Immigration program and comes with different terms and conditions. LMIA-exempt work permits also come with various restrictions.

LMIA and Provincial Nomination

Some provincial nomination program streams do not need LMIA. For instance, British Columbia’s Express Entry nomination stream does not require an LMIA.

LMIA exempt jobs

Employers need not apply for LMIA when the foreign worker:

have a valid job offer
have been working for at least one year full-time or equivalent part-time job with the employer on the work permit
have a valid LMIA-exempt work permit under any of the below-given jobs

(a) If the job position is part of an international agreement (such as the Canada-United States-Mexico Agreement (CUSMA) or non-trade agreements.
(b) Suppose the job is part of an agreement between a province or territory and the government of Canada—for example, significant investment projects.
(c) If the job type places the foreign worker in a position as an asset to Canada, contributing significantly to the country's economy and social or cultural aspects.
(d) Reciprocal employment, i.e., while foreign nationals are offered work in Canada, Canadian citizens or permanent residents are given the same opportunity in another country—for instance, an exchange program for visiting professors.
(e) If the Minister has designated the specific job as LMIA-exempt

(f) Religious and charity activities, excluding volunteers

International Mobility Program (IMP)

The International Mobility Program (IMP) is administered solely by Immigration, Refugees, and Citizenship Canada (IRCC) and is designed to promote Canada’s economic, social, and cultural policy objectives. It permits foreign nationals to work in Canada without an LMIA if their job falls within the program’s purview. The processing time is less for IMP program streams. Employers hiring through IMP must submit the job offer in the portal for employment. The employee then gives the job offer number in their application for a work permit.

LMIA and Quebec

In Quebec, Certificat d’acceptation du Québec (CAQ – Québec Acceptation Certificate) and Labour Market Impact Assessment (LMIA) are required unless exempted when an employer wants to hire foreign nationals for temporary work.

CAQ is not required if the employment:

is unpaid work
is for a maximum period of continuous 30 days
is exempt from LMIA

Also, note that CAQ is not required for foreign nationals moving to Quebec for work through the International Mobility Program (IMP).

ImmiLaw Global: The best LMIA Consultant

We will simplify the process of the LMIA application for you. As an experienced immigration consultant, we have a proficient team who will help you from the start to the end of the LMIA application process. Once the LMIA is issued, our service is also extended to providing help with the application for an employee work permit in Canada.

What to expect from us

Updated information about LMIA
Comprehensive help with the application process
Professionals with adequate knowledge of government requirements and compliance
Assistance in documentation
Advertisement and posting of job positions as per the criteria

Apply for LMIA with ImmiLaw Global

Contact us:

Development of an action plan:

Once we assess your case, based on government rules and regulations, we will develop a personalized action plan for a successful LMIA.

Preparation and review of documents:

Our professionals will work with you to prepare and review the required documents for your application and to strengthen your case.

Representation and follow-up:

You can leave us all work related to LMIA, and we will represent you and follow up on your application. Our qualified and experienced professionals will look into the communication with the government and will provide you with the latest updates.

Decision and continued support:

We offer continued support and will assist you with the next steps after receiving the decision.