LMIA for Employers

What an LMIA is

A Labour Market Impact Assessment (LMIA) is a decision from Employment and Social Development Canada (ESDC) confirming that hiring a foreign worker for a specific job is not expected to harm the Canadian labour market. The employer applies, not the worker. A positive LMIA lets the named worker apply to IRCC for an employer-specific work permit.

ESDC looks at whether you made real efforts to hire Canadians and permanent residents, whether the wage and working conditions match what Canadians in the same job and region receive, whether the job offer is genuine, and whether your business has a history of meeting program conditions.

High-wage vs. low-wage stream

Compare the offered wage with ESDC's current provincial or territorial stream threshold for the actual work location. The threshold has been set at 20% above the provincial or territorial median wage since November 8, 2024. Check the effective threshold before applying. This stream threshold is separate from the prevailing wage for the occupation and location.

• High-wage: employers must submit a transition plan describing how they will reduce reliance on temporary foreign workers over time.
• Low-wage: caps limit the share of low-wage temporary foreign workers at a work location, ESDC may refuse to process applications in regions with high unemployment, and employers must meet transportation, housing and health-coverage obligations set out on ESDC's low-wage page.
• Wage floors, caps and refusal-to-process regions change during the year — always check ESDC's current figures before you advertise.

Recruitment and advertising rules

Recruitment requirements depend on the stream and applicable exceptions. Check the current high-wage or low-wage instructions for methods, advertising duration and recruitment that must continue until a decision. Do not assume every advertisement must remain active or another job board automatically replaces Job Bank.

Ads must show the business name, job title, duties, wage, location, skill requirements and how to apply. You will need to keep proof of every ad and a record of the applicants you received, interviewed and why they were not hired.

Fees and timelines

The ESDC processing fee is $1,000 for each position requested. Some agricultural positions, caregiver positions and LMIAs supporting permanent residence only have different fee rules. You may not recover the LMIA fee — or any recruitment fee — from the worker.

Processing times differ by stream and are published by ESDC; Global Talent Stream applications have a 10-business-day service standard. After the LMIA, the worker's work permit has its own IRCC processing time, which varies by country.

Step-by-step LMIA process

A typical high-wage or low-wage LMIA follows these steps:

• Confirm the occupation (NOC 2021 code), prevailing wage and stream for the work location.
• Run compliant recruitment for at least four weeks and track every applicant.
• Prepare the application, business documents, transition plan (high-wage) and job offer.
• Pay the $1,000 processing fee per position and submit through the LMIA Online Portal.
• Respond to any ESDC officer interview or request for information.
• On approval, send the worker the LMIA decision letter so they can apply for the work permit.

Common reasons LMIAs are refused

Most refusals trace back to preventable issues:

• Advertising that missed the four-week minimum, lacked required content or was taken down early
• Wage below the prevailing wage for the occupation and region
• Weak evidence that the business is active and able to pay the wage
• Job duties that don't match the NOC code or the worker's experience
• Applying for a low-wage role in a region on ESDC's refusal-to-process list

Prepare a decision-ready evidence file

Before submission, reconcile the legal employer, worksite, duties, occupation, wage, hours and duration across the application, advertisements and offer. Explain real differences instead of leaving an officer to choose between inconsistent records. Separate the provincial stream threshold from the occupation-specific prevailing wage. Meeting one does not establish compliance with the other. Business evidence should demonstrate active operations, a genuine need for the role and capacity to honour the terms.

Create a dated recruitment folder containing advertisement copies, publication dates, applicant assessments and job-related selection reasons. Keep the requirements consistent with the advertised position. A signed contract shows what was promised, not whether wages can be paid. Assign one person to monitor officer requests and preserve each response.

Manage the work-permit handoff

Review the decision and annexes before sending documents to the worker. Follow the actual expiry on the LMIA; expiry to apply for a permit, approved employment duration and permit validity are different dates. A positive LMIA is not authorization to begin employment. Budget employer recruitment and processing separately from the worker’s application and verify authorization before onboarding.

Frequently asked questions

Official sources

• ESDC – Hire a temporary foreign worker
• ESDC – High-wage stream
• ESDC – Low-wage stream
• ESDC – Recruitment and advertisement requirements

Government rules, fees and wage thresholds change. This page is general information, not legal advice, and results vary by case.

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