LMIA Explained: What It Is and How Employers Get One

A Labour Market Impact Assessment (LMIA) is a document an employer obtains from Employment and Social Development Canada (ESDC) before they can hire most foreign workers. Understanding LMIAs — for both employers and workers — is essential to navigating Canada's Temporary Foreign Worker Program.

What Is an LMIA?

An LMIA is ESDC's assessment of whether hiring a foreign worker will have a positive, neutral, or negative impact on Canada's labour market. The central question: are there qualified Canadian citizens or permanent residents available to fill this position? If ESDC determines there are not, they issue a positive LMIA, which the employer then uses to support the foreign worker's work permit application. A negative LMIA means the employer cannot hire a foreign worker for that position at that time.

The Employer Application Process

The employer — not the foreign worker — applies for the LMIA. The employer must: advertise the position for a minimum period (usually four weeks) through Job Bank and at least two other recruitment channels, demonstrate genuine efforts to recruit Canadians and PRs, pay the prevailing wage for the occupation and region (at minimum the median wage for that NOC in that province), pay the LMIA application fee of $1,000 CAD per position, and demonstrate their business is legitimate and compliant with Canadian employment laws.

After submitting the application, ESDC reviews it and may contact the employer for additional information. Processing times range from one week to several months depending on the stream and occupation. Positive LMIAs are valid for 18 months from the date of issue — the worker must apply for their work permit within this window.

A Positive LMIA and CRS Points

For Express Entry purposes, a positive LMIA supports a qualifying job offer. A qualifying job offer in most skilled occupations (NOC TEER 1, 2, or 3) adds 50 CRS points. A job offer in a NOC TEER 0 Major Group 00 occupation (senior management) adds 200 points. The LMIA-based job offer must be full-time, non-seasonal, and for at least one year to qualify. Valid LMIAs used for CRS points remain valid for five years for this purpose — even if the work permit based on the LMIA has already been used.

LMIA Exemptions

Many categories of workers are exempt from the LMIA requirement, making it unnecessary for employers to go through the LMIA process. Key exemptions include: CUSMA/USMCA (professionals, intra-company transfers between US/Mexico and Canada), International Mobility Program categories (significant benefit, reciprocal employment, intra-company transfers globally), Global Talent Stream (uses an expedited LMIA, not a standard exemption), and spouses of certain workers and students (spousal open work permits are LMIA-exempt). If you or your employer qualifies for an LMIA exemption, the process is significantly faster and cheaper.

Common Employer Mistakes

Employers frequently make errors that result in LMIA refusals: insufficient recruitment documentation (ads that don't meet ESDC's format requirements), wage offers below the prevailing wage, failure to demonstrate genuine recruitment efforts (e.g., turning down qualified Canadian applicants without documented reason), and incomplete applications. ESDC audits employers for compliance — penalties for violations include bans from the program for two years or permanently.