If your business is experiencing labour shortages and you're considering hiring a foreign worker, one of the most important steps is obtaining a Labour Market Impact Assessment (LMIA). But what exactly is an LMIA, and how do you navigate the process?
This guide walks you through everything you need to know about the LMIA process in Canada—step by step—so you can hire with confidence and remain compliant.
What Is an LMIA?
A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC). It shows whether there is a need for a foreign worker to fill a job and confirms that no Canadian citizen or permanent resident is available to do the job.
Employers must usually obtain an LMIA before a foreign worker can apply for a work permit.
Who Needs an LMIA?
An LMIA is generally required when hiring foreign workers through the Temporary Foreign Worker Program (TFWP). If you're hiring under the International Mobility Program (IMP)—for example, through NAFTA/CUSMA or intra-company transfers—an LMIA is not required.
LMIA Process: Step-by-Step Guide for Employers
Step 1: Determine Your Business Needs
-
Identify the job position you're unable to fill locally
-
Ensure the role aligns with Canada’s National Occupation Classification (NOC) system
Step 2: Check Program Requirements
LMIAs vary by stream. Common ones include:
-
High-Wage Stream
-
Low-Wage Stream
-
Seasonal Agricultural Worker Program (SAWP)
-
Agricultural Stream
-
Global Talent Stream
Each has different advertising, wage, and housing requirements.
Step 3: Conduct Required Recruitment Efforts
You must advertise the job to Canadians first, typically for at least 4 weeks, using at least three recruitment methods, including:
-
Job Bank (mandatory)
-
Local or national job boards
-
Industry-specific platforms or outreach
Be sure to keep proof of advertisements and interview outcomes.
Step 4: Offer a Competitive Wage
You must offer the prevailing wage rate based on the position and location, according to the Job Bank Wage Report.
Step 5: Complete the LMIA Application Form
Fill out the correct LMIA application package for your stream. This includes:
-
Employer Application Form
-
Job Offer details
-
Proof of recruitment efforts
-
Transition plan (for high-wage jobs)
Step 6: Pay the LMIA Processing Fee
-
A standard $1,000 CAD fee applies per position (some agriculture streams are exempt).
-
Payment must accompany the application.
Step 7: Submit the Application
Submit your completed application to the ESDC Service Canada Centre that handles your region.
Step 8: Wait for the LMIA Decision
Processing times vary but often range from 10 business days to several weeks, depending on the stream and volume.
You may be contacted for additional information or an interview.
Step 9: Provide the LMIA to the Worker
If approved, you will receive a positive LMIA and a confirmation letter. The foreign worker can then apply for a work permit, using the LMIA document and a job offer letter.
Key Documents You’ll Need
-
Proof of business legitimacy (e.g., business license, tax documents)
-
Proof of recruitment efforts and results
-
Signed employment contract
-
Transition plan (if required)
-
Housing and transportation plans (for low-wage/agriculture roles)
Employer Responsibilities After LMIA Approval
Once your worker arrives:
-
Ensure wages and working conditions match what was offered
-
Keep detailed records of employment
-
Cooperate with possible inspections or audits from Service Canada
Failing to meet these responsibilities can result in penalties or being banned from hiring through the TFWP.
Common LMIA Mistakes to Avoid
-
Incomplete or inaccurate application forms
-
Advertising on incorrect platforms or not long enough
-
Offering below-market wages
-
Lack of documentation or interview notes
-
Not understanding the differences between LMIA streams
Need Help With Your LMIA?
Navigating the LMIA process can be complex and time-consuming. At Immigration Care, we help Canadian employers:
-
Choose the right immigration stream
-
Stay compliant with recruitment and wage rules
-
Submit complete and accurate LMIA applications
-
Prepare for post-approval compliance
Let us handle the paperwork so you can focus on growing your business.
Final Thoughts
The LMIA process is a vital gateway to accessing global talent—but it must be approached with care and compliance. By following the steps outlined above, employers can fill labour gaps while meeting all government requirements.
If you’re considering hiring a foreign worker and aren’t sure where to begin, we’re here to help.
