Labour Market Impact Assessment (LMIA)

The Labour Market Impact Assessment (LMIA) is a crucial document that many Canadian employers must obtain before hiring a foreign worker. Issued by Employment and Social Development Canada (ESDC), an LMIA verifies that there is a genuine need for a foreign worker to fill a job, and that no Canadian citizen or permanent resident is available to do so.

Employers who wish to hire a temporary foreign worker through a Closed Work Permit often need a positive LMIA to support the work permit application. This document confirms that the foreign worker’s employment will not negatively impact the Canadian labor market. Once approved, the foreign worker can apply for a work permit by presenting the LMIA and a valid job offer.

There are several LMIA streams available depending on the nature of the job and the wage level: high-wage positions, low-wage positions, agricultural workers, and specialized streams such as the Global Talent Stream. Each stream has distinct requirements, including advertising efforts, wage thresholds, and employer compliance responsibilities.

The LMIA process can be detailed and time-sensitive. Employers must demonstrate that they have advertised the position extensively and made genuine efforts to hire locally. They must also offer wages and working conditions consistent with Canadian labor standards. ESDC will review the application and determine whether hiring a foreign national is justified.

For foreign workers, a positive LMIA opens the door to applying for a Closed Work Permit, enabling them to legally work for the employer listed in the approval. In some cases, workers may also use an LMIA to support a permanent residence application under programs such as the Federal Skilled Worker Program.

To better understand how LMIAs fit within Canada’s broader employment landscape, visit our Work section for more information on work permits, extensions, and pathways toward permanent residency.

Navigating the LMIA process can be complex for both employers and applicants. Missing documentation or non-compliance with guidelines can lead to refusal or delays.

Book a consultation with our team at RightWay Canada to determine whether you or your employer require an LMIA and to get step-by-step guidance throughout the process. Let us help ensure your application is complete, compliant, and positioned for success.