LMIA Canada — Labour Market Impact Assessment

A Labour Market Impact Assessment is the document that authorizes most Canadian employers to hire a temporary foreign worker when no Canadian citizen or permanent resident is available for the role. It is not a work permit — it is an employer-side assessment conducted by Employment and Social Development Canada (ESDC) that determines whether hiring a foreign worker will have a positive or neutral effect on Canada's labour market. A positive LMIA is then used by the worker to apply for an employer-specific work permit through IRCC.

The LMIA process is document-heavy, time-sensitive, and subject to increasing scrutiny. Recruitment requirements are strict, wage thresholds are enforced, transition plans are mandatory for high-wage positions, and ESDC has tightened oversight significantly since 2024. A poorly prepared LMIA application — or one submitted without understanding the refusal-to-process rules that may apply to your location or sector — wastes time, costs money, and can delay a worker's arrival by months.

At Magellan Immigration, we assist Canadian employers through the full LMIA process — from assessing whether an LMIA is required to preparing and submitting a complete, compliant application that meets all current ESDC requirements.

When an LMIA Is Required

Most employers need an LMIA before they can hire a temporary foreign worker. The LMIA is not required when the position qualifies for an exemption under the International Mobility Program — for example, intra-company transferees, CUSMA professionals, or workers covered by international agreements. Before applying for an LMIA, confirm that no IMP exemption applies to your situation. Applying for an LMIA when an exemption was available wastes processing time and money.

LMIA Streams

The LMIA stream that applies to your situation depends on the wage being offered relative to the provincial or territorial median wage and the nature of the position.

  • For positions where the wage offered is at or above the provincial or territorial median hourly wage. High-wage LMIA applications may request an employment duration of up to three years. A transition plan is mandatory for all high-wage LMIA applications — this is a written commitment by the employer to take specific steps to recruit, retain, and train Canadians and permanent residents and reduce reliance on the TFWP over time.

  • For positions where the wage offered is below the provincial or territorial median hourly wage. Low-wage LMIA applications may request a maximum employment duration of one year. The proportion of low-wage temporary foreign workers at any given work location is capped at 10% of the total workforce — with an exception for priority sectors including construction, healthcare, and food security and processing, where the cap is 20%. LMIA applications for low-wage positions in census metropolitan areas with an unemployment rate of 6% or higher will not be processed — this refusal-to-process measure applies regardless of the occupation or sector and the unemployment rate table is updated quarterly.

  • For employers hiring uniquely skilled talent or workers in occupations on the Global Talent occupations list. The GTS offers two-week processing for eligible applications. Category A requires a referral from a designated referral partner. Category B covers specific in-demand occupations on the Global Talent occupations list. Wage requirements are significantly higher than the standard high-wage stream.

  • For employers hiring temporary foreign workers in occupations related to primary agriculture, including through the Seasonal Agricultural Worker Program (SAWP). As of January 1, 2026, the requirement to provide proof of advertisement when submitting an LMIA for primary agriculture positions has been reinstated.

Core Requirements for All LMIA Applications

 

Regardless of stream, all LMIA applicants must meet the following requirements:

Business Legitimacy ESDC assesses whether the business is genuine and the job offer is legitimate. Employers must provide supporting documentation including their most recent business licence and Canada Revenue Agency tax documents.

Recruitment Efforts Employers must demonstrate that they made reasonable efforts to hire Canadians and permanent residents before turning to the TFWP. For most streams, this requires completing all minimum required advertising for the position for at least four consecutive weeks within the three months before applying. Recruitment records must be kept for six years from the worker's first day of employment.

Full-Time Position The position must be full-time — a minimum of 30 hours of work per week.

Prevailing Wage The wage offered must meet or exceed the prevailing wage — the higher of the regional median hourly wage on Job Bank, or the wage within the range being paid to current employees in the same job and location with similar skills and experience. Offering a wage below the prevailing wage will result in a negative LMIA. Employers must review and update wages annually.

No Recruitment Fees Employers cannot charge or recover recruitment fees from temporary foreign workers, directly or indirectly. Failure to comply results in a negative LMIA.

Transition Plan — High-Wage Only A transition plan is mandatory for all high-wage positions. It must be valid for the full duration of the worker's employment and describe the specific steps the employer will take to reduce reliance on the TFWP over time.

LMIA Validity and After a Positive Decision

LMIA validity has been reduced from 12 months to 6 months. Once a positive LMIA decision is received, the employer must provide the worker with a copy of the decision letter and its Annex A — Employment Details. The worker then uses these documents to apply for an employer-specific work permit from IRCC. The work permit application must be submitted within the validity period of the LMIA.

Provincial Requirements

 

British Columbia, Manitoba, Saskatchewan, Nova Scotia Employers hiring temporary foreign workers in these provinces must first obtain an employer registration certificate from the province and include a copy with their LMIA application. Applications submitted without this documentation are considered incomplete. Allow time for provincial processing before submitting your LMIA.

Quebec LMIA applications for positions in Quebec with an employment period of more than 30 consecutive days must be submitted simultaneously to Service Canada and Quebec's Ministère de l'Immigration, de la Francisation et de l'Intégration (MIFI). Failure to submit simultaneously may affect processing. Note that until December 31, 2026, certain LMIA applications for low-wage positions in the economic regions of Montréal and Laval will not be processed regardless of the general unemployment rate rules.

Employer Compliance

Holding a positive LMIA does not end the employer's obligations. ESDC conducts compliance inspections to verify that employers are meeting all program requirements — paying the prevailing wage, providing the working conditions described in the LMIA, not charging recruitment fees, and maintaining required documentation. Non-compliant employers face warning letters, monetary penalties, and bans from the TFWP. Employers who have not employed a temporary foreign worker in the past six years are subject to an additional review when submitting a new LMIA application.

What We Do

 

  • Assess whether an LMIA is required or whether an IMP exemption applies

  • Determine the correct LMIA stream based on wage, occupation, and location

  • Confirm whether refusal-to-process rules apply to your work location

  • Verify provincial registration requirements before submitting

  • Prepare the complete LMIA application including recruitment documentation and business legitimacy evidence

  • Draft transition plans for high-wage positions

  • Coordinate LMIA submission with simultaneous provincial submissions where required

  • Advise employers on compliance obligations after a positive LMIA decision