Labor Market Impact Assessment (LMIA)

A Labour Market Impact Assessment (LMIA) is a document that Canadian employers must obtain before hiring a foreign worker. The LMIA process ensures that hiring a foreign worker will not negatively impact Canada’s job market and that there is a genuine need for hiring a non-Canadian resident. In most cases, employers must demonstrate that no Canadian citizens or permanent residents are available to fill the position before they can hire a foreign worker.

Obtaining a positive LMIA is crucial for employers and foreign workers. For employers, it validates their need to hire foreign talent. For workers, an LMIA is often a prerequisite for obtaining a work permit, which allows them to legally work in Canada.

• Employer Assurance: Confirms that hiring a foreign worker won’t harm the local job market.

• Work Permit Eligibility: Foreign workers often need an LMIA to apply for a Canadian work permit.

• Permanent Residency Pathway: A positive LMIA can also support applications for permanent residency under certain immigration programs.

There are different types of LMIAs, depending on the nature of the job and the worker's status:

• High-Wage LMIA: Required for positions that offer wages above the provincial or territorial median wage.

• Low-Wage LMIA: Required for positions with wages below the provincial or territorial median wage.

• LMIA for Permanent Residency: Used when the foreign worker is being hired for a permanent position and is applying for permanent residency.

• LMIA for Global Talent Stream: For employers hiring highly-skilled workers in specialized fields, allowing for expedited processing.

• Agricultural LMIA: Required for employers hiring temporary foreign workers in agricultural roles.

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Before applying for an LMIA, employers must advertise the job in Canada for at least four weeks to demonstrate that no suitable Canadian candidates are available. The job must be posted on the Government of Canada’s Job Bank and at least two other recruitment methods.

Employers submit the LMIA application to Employment and Social Development Canada (ESDC), including detailed information about the job, the recruitment process, and the impact of hiring a foreign worker.

ESDC will assess the application, considering factors such as the impact on the Canadian labor market, wages offered, and working conditions. The processing time can vary, depending on the type of LMIA and the specifics of the job.

If the LMIA is approved, the employer will receive a positive LMIA, allowing them to proceed with hiring the foreign worker. If denied, the employer may need to explore other options or adjust their hiring strategy.

Once a positive LMIA is issued, the foreign worker can apply for a work permit. The LMIA is a key component of the work permit application, and the worker must submit it along with other required documents.