What Is an LMIA
Overview: Labour Market
Impact Assessment
The Labour Market Impact Assessment (LMIA) is Canada's mechanism for ensuring that hiring a foreign worker will not displace a qualified Canadian. Before a foreign worker can receive a Temporary Work Permit for most positions, their Canadian employer must first obtain a positive LMIA from Employment and Social Development Canada (ESDC).
A positive LMIA is ESDC's confirmation that: the employer genuinely tried to hire a Canadian or permanent resident for the role and could not find one, and that the foreign worker's employment will benefit — or at minimum not negatively impact — the Canadian labour market.
Government Fee
$1,000 CAD per position
Who Applies
The employer, not the worker
LMIA Validity
Typically 6 months
Important distinction: The employer applies for the LMIA. Once a positive LMIA is issued, the foreign worker uses the LMIA confirmation number to apply for a Work Permit through IRCC. These are two separate applications with separate fees and timelines.
The LMIA process requires employers to document their recruitment efforts meticulously — job postings on the federal Job Bank, at least two additional platforms (LinkedIn, print, trade boards), interview records, and written reasons for not hiring each Canadian applicant reviewed. ESDC conducts random compliance reviews and can audit employers at any time.
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Types of LMIA
LMIA Streams Explained
Canada's LMIA system is divided into several streams depending on the wage level, industry, and nature of the employment. Choosing the right stream — and applying correctly within it — is critical to approval.
High Wage Stream
At or Above Median Wage
For positions where the offered wage meets or exceeds the provincial/territorial median hourly wage for the occupation. Allows longer employment terms and is the most common stream for professional and technical roles.
- Employment duration: Up to 3 years, aligned with the employer's reasonable business needs.
- Transition plans required: Employers must submit a plan demonstrating how they will reduce reliance on temporary foreign workers over time — through local training, recruitment expansion, or apprenticeship programs.
- Cap on TFW workforce: No hard cap, but transition plans are scrutinised more heavily when TFW share of workforce is high.
- Wage verification: The offered wage must be the prevailing wage — equal to what Canadians are paid for the same role at the same workplace.
Low Wage Stream
Below Median Wage
For positions where the offered wage falls below the provincial/territorial median hourly wage. Subject to stricter limits and additional employer obligations to protect Canadian workers.
- TFW workforce cap: Employers are limited to a maximum of 20% of their total workforce being temporary foreign workers (10% in some high-unemployment regions and certain accommodation/food service sectors).
- Employment duration: Capped at 1 year for most positions. Renewal requires a new LMIA application.
- Additional employer obligations: Must provide adequate housing or assistance finding it, pay for round-trip transportation, and register workers with provincial health insurance from day one.
- Moratorium areas: ESDC may refuse Low Wage LMIA applications in regions where the unemployment rate is at or above 6%, particularly in retail, food service, and accommodation sectors.
Agricultural Stream
Year-Round Ag Workers
For employers in the agricultural sector requiring workers for year-round primary agriculture activities when Canadians and permanent residents are not available. Simpler process than the standard streams.
- Industry specificity: Employers must operate in specific commodity sectors (dairy, poultry, horticulture, etc.) and activities must be on-farm primary agriculture.
- Duration: Up to 2 years. Employers are expected to invest in training Canadian workers as a long-term goal.
- Transition plans: Employers must demonstrate steps toward reducing TFW dependency — pathways to permanent residency for workers is highly regarded.
Seasonal Agricultural Worker Program (SAWP)
Mexico & Caribbean
A bilateral program allowing employers in primary agriculture to hire workers from Mexico and participating Caribbean countries for seasonal peaks. Workers return home after the season.
- Season length: Maximum 8 months per year (January 1 to December 15). Workers must return home between seasons.
- Minimum work guarantee: Employer must offer at least 240 hours of work within a period of 6 weeks or less to qualify.
- Eligible source countries: Mexico, Jamaica, Trinidad and Tobago, Barbados, and other OECS member states. Workers must be citizens of these countries.
- Employer responsibilities: Housing provision, return transportation, health insurance from day 1, and compliance with provincial labour standards.
Global Talent Stream (GTS)
10-Day Processing
The fastest LMIA stream, designed for innovative Canadian companies hiring highly-skilled foreign workers. A 10-business-day processing standard applies when applications are complete and no compliance review is triggered.
- Category A: For innovative companies referred by a designated partner organisation (e.g. MaRS, Communitech) needing unique and specialised talent not available in Canada.
- Category B: Open to any employer hiring for occupations on the Global Talent Occupations List — software engineers, data scientists, cybersecurity analysts, cloud architects, and other high-demand tech roles.
- Labour Market Benefits Plan: Employers must commit to creating jobs for Canadians, investing in skills development, or other measurable benefits — not just hiring one foreign worker.
- Employment duration: Up to 3 years. No TFW workforce cap applies to this stream.
Dual Intent LMIA
Temporary + PR Pathway
A Dual Intent LMIA allows the employer to address both immediate temporary staffing needs and the worker's long-term permanent residency goals within a single application framework.
- How it works: The employer can simultaneously apply for an LMIA under any of the streams above, while the foreign worker uses the positive LMIA to apply for both a Work Permit and, once eligible, permanent residency through Express Entry or a PNP.
- CRS score boost: A valid job offer supported by a positive LMIA adds 50–200 CRS points to an Express Entry profile, depending on the NOC TEER classification of the position.
- Strategic planning: Best used when the employer wants to retain a specific foreign worker long-term. Yenmek advises clients on whether Dual Intent aligns with their immigration strategy before filing.
Fast-Track Options
Expediting Your LMIA
In urgent situations, ESDC can meet a 10-business-day service standard for qualifying applications. This is not guaranteed for all applications — specific conditions must be met. Understanding these criteria can dramatically shorten your hiring timeline.
Expediting by Occupation
ESDC prioritises expedited processing for positions on the Global Talent Occupations List and for roles in sectors experiencing critical labour shortages. The 10-day standard under GTS Category B applies specifically to occupations on this list.
- Complete application required: The 10-day standard only applies when the application is 100% complete with all required documentation. Any missing document triggers a standard review timeline.
- No additional consultation needed: ESDC must not require extra time for clarification. Ambiguous job descriptions, wage discrepancies, or vague recruitment records all trigger delays.
- No compliance review: If ESDC has selected the employer for a compliance audit, the expedited standard does not apply until the review is completed.
Expediting by Wage
Applications offering wages significantly above the provincial median are looked upon more favourably and may be processed faster even outside the GTS, as they signal genuine labour market need and reduced risk of displacement.
- Wage threshold: Wages at or above 125% of the provincial median for the NOC code tend to receive more streamlined review. ESDC views these as evidence the employer is genuinely competing for top talent.
- Skilled trades: Certain skilled trades positions — particularly in construction, oil and gas, and manufacturing — may qualify for expedited review when wages meet provincial thresholds and labour shortages are documented.
- Economic growth contribution: ESDC considers whether the position contributes to Canada's economic growth — particularly for roles that enable export, innovation, or creation of additional Canadian jobs.
Yenmek's approach: We review every application before submission to identify whether it qualifies for expedited processing and prepare the file specifically to meet ESDC's completeness standard — minimising the risk of follow-up requests that reset the clock.
Step by Step
The Full LMIA Process
The LMIA process is entirely employer-driven. The foreign worker does not participate until after the LMIA is approved. Here is the complete sequence from start to work permit approval.
01
Post the Job on Job Bank (Minimum 4 Weeks)
Create a free employer account on Job Bank (jobbank.gc.ca) and post the position. The advertisement must run for a minimum of 28 days before the LMIA application is submitted. You must also advertise on at least 2 other national or occupation-specific platforms simultaneously (LinkedIn, Indeed, trade journals, or newspapers).
02
Document All Recruitment Efforts
Collect and organise every application received. For each Canadian applicant who was not hired, write a specific, documented reason aligned with the job requirements. ESDC auditors look for consistent, non-discriminatory rejection rationale. "Not enough applicants" alone is rarely sufficient — you need to show you genuinely tried and assessed each person.
03
Prepare the LMIA Application Package
Complete EMP5626 with the correct NOC TEER code, detailed job duties, prevailing wage data, business registration documents, CRA business number, and proof of all recruitment activities. For High Wage positions, include a transition plan. For GTS, include the Labour Market Benefits Plan. Yenmek prepares this entire package and reviews it against ESDC's completeness checklist before submission.
04
Pay the $1,000 ESDC Fee & Submit
Submit the completed application via the ESDC Employer Portal or by email to the appropriate regional processing centre. Pay the $1,000 non-refundable government fee per position. Confirm receipt and track the file reference number.
05
ESDC Review (2–5 Months or 10 Business Days for GTS)
ESDC may contact the employer for additional documentation or clarification. Responding promptly and completely is critical — delays in responding reset the processing clock. A compliance review may be triggered randomly or due to previous violations.
06
Receive Positive LMIA
ESDC issues a positive LMIA with a confirmation number. The LMIA is typically valid for 6 months from the date of issue — the worker's Work Permit application must be submitted within this window.
07
Worker Applies for Work Permit via IRCC
The foreign worker uses the LMIA confirmation number to apply online through their IRCC account. They submit their passport, LMIA letter, job offer letter, educational credentials, and any required medical or police certificates. Biometrics are required if not already enrolled. Processing is typically 4–12 weeks depending on the worker's country of origin.
Compliance risk: ESDC randomly selects employers for compliance inspections — during and after the employment period. Violations (paying below offered wage, different job duties, inadequate housing for Low Wage workers) can result in fines up to $100,000 and permanent bans from the TFW program. Keep all employment records for 6 years.
LMIA-Free Pathways
LMIA Exemptions
Not every foreign worker requires an employer to obtain an LMIA. The International Mobility Program (IMP) covers dozens of exemption categories where Canada's international obligations, broader economic benefit, or reciprocal agreements take precedence over labour market protection requirements.
Key difference: LMIA-exempt work permits are processed through IRCC, not ESDC. Instead of a $1,000 LMIA fee, a $230 employer compliance fee applies for most IMP categories. Processing is typically faster — often 2–4 weeks for straightforward cases.
Intra-Company Transfers (ICT)
Senior managers, executives, and specialised knowledge workers transferring to a Canadian branch, affiliate, or subsidiary of a multinational company. The Canadian entity must have a qualifying relationship with the foreign entity. Employment duration: 1–3 years depending on role type.
CUSMA / USMCA (formerly NAFTA)
Citizens of the US and Mexico in designated professional categories (engineers, accountants, lawyers, scientists, etc.) can enter Canada for work without an LMIA. Must have a valid job offer and meet educational/credential requirements for the listed profession. US citizens are processed at the port of entry; Mexicans require a pre-approved work permit.
Significant Benefit to Canada
Foreign nationals whose work provides a clear cultural, social, or economic benefit to Canada — including world-class athletes, performing artists, researchers at Canadian universities, and certain religious workers. The employer or individual must demonstrate the international calibre and direct Canadian benefit of the work.
Spousal / Common-Law Partner Open Work Permit
Spouses and common-law partners of skilled foreign workers (NOC TEER 0, 1) or international students at eligible institutions can receive an Open Work Permit — allowing them to work for any Canadian employer without an LMIA. Dependent on the principal applicant's valid status in Canada.
Post-Graduation Work Permit (PGWP)
International graduates from eligible Canadian Designated Learning Institutions receive an Open Work Permit for up to 3 years after graduation. PGWP holders can work for any employer without an LMIA. This is one of the most valuable Canadian pathways for foreign graduates targeting permanent residency through CEC.
Global Skills Strategy (GSS)
Canada's Global Skills Strategy offers two-week processing for highly-skilled workers and researchers. Academics on short research visits (120 days or fewer), and workers in specialised occupations at companies pre-approved under GSS, may benefit from expedited LMIA-exempt entry.