Learn how the LMIA works in Canada, who needs it, who applies for it, and what it means for foreign workers seeking a Canadian work permit.
Have you received a Canadian job offer but keep hearing about an LMIA?
You’re not alone. For many foreign workers, the Labour Market Impact Assessment (LMIA) is one of the most confusing parts of Canada’s immigration system. Yet understanding how it works can save you time, money, and unnecessary stress.
The LMIA is not a visa, nor is it a work permit. Instead, it is a key document that allows many Canadian employers to legally hire foreign talent when qualified Canadians or permanent residents are unavailable.
What is an LMIA?
A Labour Market Impact Assessment (LMIA) is an official document issued by Employment and Social Development Canada (ESDC). It assesses whether hiring a foreign worker will have a positive, neutral, or negative impact on Canada’s labour market.
A positive LMIA confirms that:
- There is a genuine need to hire a foreign worker.
- No Canadian citizen or permanent resident is available to fill the position.
Once the employer receives a positive LMIA, the foreign worker can generally apply for an employer-specific work permit through Immigration, Refugees and Citizenship Canada (IRCC).
Who applies for the LMIA?
Here’s where many applicants get confused.
The employer—not the foreign worker—is responsible for the LMIA application.
That means the Canadian employer must:
- Advertise the job in Canada.
- Demonstrate genuine efforts to recruit Canadians.
- Submit supporting documents to ESDC.
- Pay the government processing fee.
The worker simply waits until the LMIA has been approved before applying for a work permit.
How does the LMIA process work?
Although processing times vary depending on the occupation and program stream, the process generally follows these steps.
Step 1: The employer advertises the job
Before hiring internationally, employers usually have to advertise the vacancy and actively recruit Canadian citizens and permanent residents.
They must also keep records showing why local candidates were not selected. This requirement is designed to protect Canada’s labour market while addressing genuine labour shortages.
Step 2: The employer submits the LMIA application
The employer files the application with ESDC, providing details such as:
- the job description;
- salary and working conditions;
- recruitment efforts;
- business information.
For most LMIA applications, the employer must also pay a CAD $1,000 processing fee (approximately €640, depending on the exchange rate). This fee cannot legally be passed on to the foreign worker.
Step 3: ESDC reviews the application
Government officers assess whether:
- the wage is appropriate;
- the working conditions meet Canadian standards;
- hiring a foreign worker is justified;
- Canadians were given a fair opportunity to apply.
If everything meets program requirements, the employer receives a positive LMIA together with a confirmation number.
Step 4: The worker applies for a work permit
After receiving the LMIA documentation, the foreign worker submits a work permit application to IRCC.
Typically, the application includes:
- the LMIA number;
- a copy of the LMIA;
- the employment contract;
- the official job offer letter.
Does every foreign worker need an LMIA?
Not at all.
One of the biggest misconceptions is that every Canadian work permit requires an LMIA. In reality, many work permits are LMIA-exempt.
Examples include:
- many open work permits;
- certain spousal work permits;
- some international trade agreement categories;
- eligible intra-company transfers;
- several International Mobility Program streams.
That’s why it’s always worth checking whether your situation qualifies for an exemption before focusing exclusively on LMIA-supported jobs.
High-wage and low-wage LMIA streams
Canada separates most LMIA applications into two main categories:
High-wage positions
These jobs pay at or above the provincial or territorial median wage.
Employers may have to submit a transition plan explaining how they intend to reduce reliance on temporary foreign workers over time.
Low-wage positions
These positions are subject to additional rules designed to protect workers.
Depending on the occupation and province, employers may face limits on the number of low-wage temporary foreign workers they can employ and may also have additional obligations regarding transportation, housing, or health coverage.
Common myths about LMIA
Many rumours circulate online, and not all of them are accurate.
Myth: The worker pays for the LMIA.
Reality: The employer pays the government processing fee. Charging the worker for this fee is generally prohibited.
Myth: An LMIA guarantees permanent residence.
Reality: A positive LMIA may help someone obtain a work permit, but it does not automatically lead to permanent residence. Separate immigration requirements still apply.
Myth: Every Canadian employer can easily obtain an LMIA.
Reality: Employers must satisfy strict recruitment and compliance requirements before approval is granted, and applications can be refused.
Can an LMIA increase your Express Entry score?
This is an area where immigration rules have changed.
As of 2026, an LMIA-supported job offer no longer awards additional Comprehensive Ranking System (CRS) points in Express Entry. However, an LMIA remains important because it can still support eligibility for an employer-specific work permit under the Temporary Foreign Worker Program.
