LMIA Canada Explained: What Workers and Employers Should Know

LMIA Canada is a process many Canadian employers must complete before hiring a temporary foreign worker for an employer-specific position.

LMIA stands for Labour Market Impact Assessment. Employment and Social Development Canada, commonly known as ESDC, and Service Canada use the assessment to determine whether hiring a foreign worker is likely to have a positive, neutral or negative effect on the Canadian labour market.

The employer applies for the LMIA. The foreign worker does not submit the LMIA application and should not be charged the government LMIA processing fee.

A positive LMIA may allow the foreign worker to apply for an employer-specific work permit, but it does not automatically guarantee that the work permit will be approved.

LMIA Canada: Quick Overview

What Is an LMIA?

A Labour Market Impact Assessment is an assessment of a Canadian employer’s request to hire one or more temporary foreign workers.

Service Canada examines whether the employer has a genuine need for the position and whether hiring a foreign worker could negatively affect Canadian citizens and permanent residents.

The assessment can consider:

• Whether the business and job offer are legitimate
• Whether the employer tried to recruit Canadians and permanent residents
• Whether the wage meets the applicable requirements
• Whether the job duties and working conditions are reasonable
• Whether hiring the worker could create or retain employment in Canada
• Whether the employer has previously complied with immigration and employment rules
• Whether low-wage limits or refusal-to-process rules apply

Most employers hiring through the Temporary Foreign Worker Program need a positive LMIA before the worker applies for an employer-specific work permit.

LMIA vs Work Permit

An LMIA and a work permit are separate documents issued through separate government processes.

A positive LMIA allows the employer to support the worker’s application. IRCC still evaluates the worker’s admissibility, qualifications and eligibility.

Read Work Permit Canada Explained: Open vs Employer-Specific Work Permit for a comparison of work permit types.

Who Applies for an LMIA?

The Canadian employer applies for the LMIA through the appropriate ESDC process.

An authorized lawyer, immigration consultant or other permitted representative may assist the employer, but the employer remains responsible for the accuracy of the application and the conduct of recruiters acting on its behalf.

The foreign worker may provide personal information needed for the application, but the worker should not:

• Submit the employer’s LMIA application as if they were the employer
• Pay the government LMIA processing fee
• Reimburse the employer for recruitment expenses
• Purchase a fake job offer or LMIA approval

After a positive decision, the worker uses the employer’s LMIA documents to apply for the appropriate work permit.

When Is an LMIA Required?

Most employers hiring a foreign worker through the Temporary Foreign Worker Program need an LMIA.

An LMIA may not be required when:

• The worker already holds a valid open work permit
• The position qualifies under an International Mobility Program exemption
• An international agreement applies
• The work provides a qualifying significant benefit to Canada
• Reciprocal employment rules apply
• A specific provincial, academic, charitable, religious or other exemption applies
• The activity does not legally require a work permit

An LMIA exemption and a work permit exemption are not the same.

A worker may be exempt from the LMIA but still need a work permit. In many employer-specific LMIA-exempt cases, the employer must submit an offer through the Employer Portal and pay an employer compliance fee before the worker applies.

See LMIA-Exempt Work Permit Canada: Who May Qualify for the next guide in this series.

Positive and Negative LMIA Decisions

Positive LMIA

A positive LMIA means Service Canada determined that hiring the temporary foreign worker would have a positive or neutral effect on the Canadian labour market.

People sometimes refer to a “neutral LMIA,” but the employer generally receives a positive decision when the assessed impact is positive or neutral.

The employer receives a decision letter and employment details that must be provided to the foreign worker.

Negative LMIA

A negative decision means Service Canada was not satisfied that the employment would have a positive or neutral labour-market impact.

Possible reasons can include:

• Insufficient recruitment of Canadians and permanent residents
• A wage below the applicable prevailing wage
• Questions about the legitimacy of the business or job offer
• Unreasonable job requirements
• Failure to meet a transition-plan requirement
• Employer non-compliance
• Concerns about working conditions or worker protection

The usual processing fee is not refunded simply because the LMIA is negative.

Refusal to Process

A refusal to process is different from a negative assessment. Service Canada may decline to process an application because a specific program restriction applies.

Examples include some low-wage positions above the permitted workforce cap or positions in certain census metropolitan areas with an unemployment rate of 6% or higher.

Main LMIA Program Streams

The employer must apply through the stream that matches the job and purpose of hiring.

Requirements differ between streams. Employers should not use a high-wage or low-wage form simply because it appears easier.

High-Wage vs Low-Wage LMIA Positions

The offered hourly wage determines whether a regular position is assessed under the high-wage or low-wage stream.

The employer compares the offered wage with the threshold for the province or territory where the worker will perform the job.

• At or above the threshold: high-wage stream
• Below the threshold: low-wage stream

The threshold determines the stream, but it does not replace the prevailing-wage requirement.

The offered wage should generally be comparable to the wage paid to Canadians and permanent residents performing the same occupation in the same work location with similar experience.

Artificially increasing the wage only to avoid low-wage requirements may result in a negative decision.

LMIA Wage Thresholds for 2026

The federal government updates the high-wage and low-wage thresholds periodically. The date Service Canada receives the application determines which threshold applies.

What Must the Employer Prove?

The exact documents depend on the stream, but employers generally need to demonstrate that the business and job offer are legitimate.

Evidence may include:

• A valid CRA business and payroll account
• Business licences and registration records
• CRA tax documents
• Commercial leases or operating-location evidence
• Payroll records
• Financial documents showing the ability to pay wages
• Recruitment and advertising records
• A genuine employment need
• A reasonable NOC code and job description
• Compliance with prevailing-wage and working-condition requirements

New employers that have not employed a temporary foreign worker within the previous six years may be subject to additional review concerning workplace abuse prevention and program eligibility.

Recruitment and Advertising Requirements

The employer generally must try to recruit Canadian citizens and permanent residents before applying for an LMIA.

Recruitment requirements differ by stream.

Employers must keep recruitment and advertising records for at least six years.

The advertisement should accurately state the employer, location, title, duties, wage, terms of employment, language and required experience.

Inflated education, language or experience requirements intended to exclude Canadian applicants can create problems during assessment.

How the LMIA Application Process Works

Step 1: Determine Whether an LMIA Is Required

The employer checks whether the position qualifies for an LMIA exemption or whether the worker already has an open work permit.

Step 2: Select the Correct LMIA Stream

The employer identifies whether the application belongs under high-wage, low-wage, agriculture, Global Talent, permanent residence support or another stream.

Step 3: Identify the NOC and Prevailing Wage

The employer selects the NOC that best matches the actual duties and checks the prevailing wage for the occupation and work location.

The job title alone does not determine the NOC. See NOC TEER Canada: How to Choose the Right Code.

Step 4: Complete Recruitment

The employer advertises the job using the methods and duration required for the applicable stream.

Step 5: Gather Business Evidence

Business-legitimacy, payroll, tax, recruitment and job-offer documents are collected.

Step 6: Apply Through LMIA Online

Most applications are submitted electronically through LMIA Online.

A Canadian employer generally needs:

• A CRA-issued business number with a payroll account
• A personal Job Bank user account
• A business registered in Job Bank
• Supporting documents in an accepted file format

Step 7: Pay the Processing Fee

The employer pays the required fee unless the application qualifies for a specific exemption.

Step 8: Respond to Service Canada

Service Canada may contact the employer for clarification, additional documents or an interview.

Step 9: Receive the Decision

The employer receives the positive or negative decision through the applicable communication channel or LMIA Online account.

How Much Does an LMIA Cost?

The standard LMIA processing fee is CAN$1,000 for each position requested.

For example:

• 1 position: $1,000
• 3 positions: $3,000
• 10 positions: $10,000

The fee is generally not refunded if:

• The employer withdraws the application
• The application is cancelled
• The employer receives a negative LMIA

Specific fee exemptions may apply to certain primary agriculture positions and qualifying families hiring some in-home caregivers.

How Long Does LMIA Processing Take?

There is no single LMIA processing time that applies to every application.

ESDC updates average processing times monthly for different streams. Timing can vary based on:

• The LMIA stream
• Application volume
• Whether the application is complete
• The occupation and industry
• Whether additional documents are required
• Whether the employer interview raises further questions
• Whether priority processing applies

Global Talent Stream applications may have a service standard aimed at faster processing, but employers should not assume every application will be completed within the same period.

The LMIA processing time does not include the worker’s separate work permit processing time.

LMIA Validity, Work Duration and Work Permit Expiry

These three dates are commonly confused.

Positive LMIA decisions are generally valid for up to six months.

The foreign worker must submit the work permit application before the LMIA expiry date. The work permit does not need to be approved before that date.

For regular positions:

• A high-wage employer may generally request an employment duration of up to 3 years.
• A low-wage employer may generally request an employment duration of up to 1 year.

Different limits can apply to agriculture, permanent-residence support and other specialized streams.

What Happens After a Positive LMIA?

After receiving a positive decision, the employer should provide the foreign worker with:

• A copy of the positive LMIA decision letter
• Annex A containing the employment details
• The employment contract or job-offer documents required for the work permit application

The worker then applies to IRCC for an employer-specific work permit.

IRCC may assess:

• Whether the worker is admissible to Canada
• Whether the worker can perform the job
• Whether the documents are genuine
• Whether biometrics are required
• Whether a medical examination is required
• Whether the worker is likely to comply with temporary-resident conditions

The worker must not begin working merely because the employer received a positive LMIA.

The worker needs valid authorization to work unless a specific public policy or work permit exemption applies.

Documents the Foreign Worker May Need

The personalized work permit checklist controls, but a worker may need:

• A valid passport
• The positive LMIA decision letter
• Annex A with employment details
• The employment contract or offer
• Education and training records
• Professional licences where required
• Evidence of relevant work experience
• Police certificates where requested
• Biometrics
• A medical examination where required
• Proof of current status if applying inside Canada

Applicants can use Canada Immigration Reference Letter: What to Include and Proof of Work Experience Canada when preparing employment evidence.

Important Rules for Low-Wage LMIA Applications

Low-wage applications face additional restrictions intended to limit reliance on temporary foreign workers and protect workers.

Workforce Cap

The general cap is 10% of the workforce at a particular work location in low-wage temporary foreign worker positions.

A 20% cap may apply to eligible positions in sectors such as:

• Construction
• Food manufacturing
• Hospitals
• Nursing and residential care facilities
• Certain in-home caregiving occupations

Temporary rural measures may alter the applicable cap for eligible employers in participating provinces and territories.

CMA Unemployment-Rate Restriction

Certain low-wage LMIA applications are not processed when the job is located in a census metropolitan area with an unemployment rate of 6% or higher.

Exemptions may apply to specified occupations and sectors, including some positions in primary agriculture, construction, food manufacturing, hospitals, nursing care and caregiving.

The government updates the applicable CMA unemployment-rate table every three months.

Transportation

For low-wage positions, the employer generally must pay the worker’s round-trip transportation to the Canadian work location and back to the country of residence at the end of the authorized employment.

The cost cannot be recovered from the worker.

Housing

The employer must provide or ensure that suitable and affordable housing is available.

Affordable housing is generally assessed using a standard under which shelter costs are less than 30% of the worker’s before-tax income.

Private Health Insurance

Where the worker is not immediately covered by a provincial or territorial health plan, the employer generally must obtain and pay for private emergency medical coverage beginning on the worker’s first day of employment.

The insurance cost cannot be charged back to the worker.

Temporary Foreign Worker Rights

A positive LMIA does not allow the employer to ignore Canadian employment laws.

Temporary foreign workers generally have the right to:

• Receive the wage and working conditions stated in the employment agreement
• Work in a workplace free from abuse
• Keep their own passport and work permit
• Receive applicable employment-standard protections
• Receive workplace safety coverage where required
• Refuse unsafe work under applicable law
• Report abuse or employer non-compliance

An employer cannot threaten to deport a worker directly. Only Canadian immigration authorities make immigration decisions.

However, an employer-specific work permit normally restricts the worker to the employer, occupation and location shown on the permit.

A worker who wants to change employers generally needs new authorization before starting the new job.

LMIA Job Scams and Warning Signs

LMIA fraud can involve fake employers, fake job offers, false decision letters or illegal demands for payment.

Warning signs include:

• An employer asking the worker to pay the $1,000 LMIA fee
• A recruiter selling a guaranteed positive LMIA
• A job offer with no interview or employer verification
• Payment requested through cryptocurrency, gift cards or a personal account
• A salary that is unusually high for the occupation
• A worker being told to perform duties different from the LMIA or permit
• A promise that an LMIA guarantees permanent residence
• A request to submit false education or work-experience documents

Does an LMIA Help With Permanent Residence?

An LMIA may support a qualifying job offer or help an employer support a worker under a permanent-residence-related stream.

However, an LMIA does not automatically grant permanent residence.

Since March 25, 2025, Express Entry no longer awards the previous 50 or 200 additional CRS points solely for an arranged employment job offer.

A valid job offer may still matter for:

• Eligibility under certain Express Entry programs
• Federal Skilled Trades Program requirements
• Some Provincial Nominee Programs
• Employer-supported permanent residence pathways
• Maintaining authorized employment while another application is processed

Applicants should not accept a job or pay money based on an outdated promise of automatic CRS points.

LMIA Applications for Jobs in Quebec

Quebec has additional requirements for many LMIA-based positions.

Depending on the position and duration, the employer may need to apply through federal and Quebec processes.

A worker applying for an LMIA-based work permit in Quebec may need:

• A positive LMIA
• A Quebec Acceptance Certificate, commonly called a CAQ
• The employment contract
• The documents required for the federal work permit application

Quebec also has facilitated LMIA procedures for certain occupations and temporary restrictions affecting some low-wage positions.

Employers should consult both Service Canada and Quebec’s immigration ministry before applying.

Common LMIA Mistakes

Choosing the Wrong Wage Stream

The employer must compare the offered wage with the threshold in effect when Service Canada receives the application.

Using the Wrong NOC

The NOC should match the real duties, not simply the preferred job title or immigration outcome.

Advertising for Too Short a Period

Low-wage positions now generally require eight consecutive weeks of advertising within the three months before applying.

Stopping Every Advertisement After Submission

At least one qualifying recruitment activity generally must continue until Service Canada issues the decision.

Charging the Worker

Employers cannot recover the LMIA fee, recruitment cost or paid representative cost from the temporary foreign worker.

Assuming the Positive LMIA Is a Work Permit

The worker must still apply for and receive valid work authorization.

Missing the Six-Month Deadline

The worker must submit the work permit application before the LMIA expiry date.

Ignoring Low-Wage Refusal Rules

Employers should check the workforce cap and the current CMA unemployment-rate table before paying for advertising and preparing the application.

Changing the Job After Approval

There are limits on what can be changed after a positive LMIA. Significant changes to the employer, occupation, wage, location or working conditions may require a new LMIA and work permit application.

LMIA Canada Checklist

Employer Checklist

• □ I confirmed whether an LMIA is required.
• □ I selected the correct LMIA stream.
• □ I selected the NOC based on the actual duties.
• □ I checked the prevailing wage.
• □ I checked the provincial or territorial wage threshold.
• □ I completed the required advertising period.
• □ I used Job Bank and the required additional recruitment methods.
• □ I kept records of applicants and recruitment results.
• □ I checked whether low-wage cap restrictions apply.
• □ I checked the current CMA unemployment-rate restriction.
• □ I prepared business-legitimacy and payroll documents.
• □ I prepared a transition plan if required.
• □ I did not charge the worker any LMIA or recruitment costs.
• □ I submitted the application through the appropriate system.
• □ I continued at least one required recruitment activity until the decision.
• □ I gave the worker the positive decision letter and Annex A.

Worker Checklist

• □ I verified the employer and job offer.
• □ I did not pay the employer’s LMIA fee.
• □ I received a copy of the positive LMIA decision.
• □ I received Annex A and the employment contract.
• □ The job title, wage, duties and location are accurate.
• □ I checked the LMIA expiry date.
• □ I submitted my work permit application before that date.
• □ I provided genuine education and work-experience documents.
• □ I understand that the positive LMIA does not guarantee approval.
• □ I will not begin working until I have legal authorization.
• □ I will follow the employer, occupation and location conditions on my permit.

Related Immigration Guides

• LMIA-Exempt Work Permit Canada: Who May Qualify
• Work Permit Canada Explained: Open vs Employer-Specific Work Permit
• NOC TEER Canada: How to Choose the Right Code
• Canada Immigration Reference Letter: What to Include
• Proof of Work Experience Canada: What Applicants Need
• Maintained Status in Canada Explained: What It Means
• Restoration of Status Canada: Key Rules to Know

Helpful Official Resources

• ESDC: Hire a Temporary Foreign Worker With an LMIA
• IRCC: Find Out If an LMIA Is Required
• ESDC: High-Wage and Low-Wage Thresholds
• ESDC: High-Wage LMIA Requirements
• ESDC: Low-Wage LMIA Requirements
• ESDC: LMIA Expiry and Validity
• ESDC: Refusal to Process an LMIA
• ESDC: Current LMIA Processing Times
• ESDC: LMIA Online Resources

FAQ About LMIA Canada

What does LMIA stand for?

LMIA stands for Labour Market Impact Assessment.

Who applies for an LMIA in Canada?

The Canadian employer applies, either directly or through an authorized representative. The foreign worker applies separately for the work permit.

How much is an LMIA?

The standard processing fee is $1,000 for each requested position, unless a specific fee exemption applies.

Can an employer make the worker pay the LMIA fee?

No. Employers cannot recover the LMIA processing fee, recruitment costs or paid representative costs from temporary foreign workers.

Does a positive LMIA guarantee a work permit?

No. IRCC separately assesses the worker’s work permit application, admissibility, qualifications and supporting documents.

How long is a positive LMIA valid?

A positive LMIA is generally valid for up to six months. The worker must submit the work permit application before the expiry date shown on the decision.

Can I start working as soon as the LMIA is approved?

No. A positive LMIA is not work authorization. You must have a valid work permit or another legal authorization before beginning employment.

What is a neutral LMIA?

The assessment examines whether the impact is positive, neutral or negative. A positive decision is generally issued when the impact is found to be positive or neutral.

Do open work permit holders need an LMIA?

An employer generally does not need an LMIA to hire a worker who already holds a valid open work permit, although the worker must comply with any restrictions printed on the permit.

What is the difference between a high-wage and low-wage LMIA?

The offered wage is compared with the threshold for the province or territory. A wage at or above the threshold uses the high-wage stream; a wage below it uses the low-wage stream.

How long must a low-wage position be advertised?

For applications submitted under the rules effective April 1, 2026, the job generally must be advertised for at least eight consecutive weeks within the three months before the LMIA application.

How long must a high-wage position be advertised?

A high-wage job generally must be advertised for at least four consecutive weeks within the three months before the LMIA application, using the required recruitment methods.

What is an LMIA transition plan?

A transition plan explains how a high-wage employer will recruit, retain and train Canadians and permanent residents and reduce reliance on the Temporary Foreign Worker Program. Certain positions are exempt.

Can a low-wage LMIA be refused because of the city’s unemployment rate?

Certain low-wage applications in census metropolitan areas with an unemployment rate of 6% or higher are not processed unless an exemption applies.

Does an LMIA give Express Entry CRS points?

Not by itself. Express Entry removed the previous additional CRS points for arranged employment on March 25, 2025. A qualifying job offer may still matter for certain eligibility requirements or immigration programs.

Can I change employers with an LMIA-based work permit?

An employer-specific permit normally limits you to the employer shown on the permit. You generally need to apply for new authorization before starting work for a different employer.

Can an LMIA be extended?

A positive LMIA cannot simply be used after its expiry date. If the worker does not apply for a work permit before expiry, the employer generally needs a new LMIA.

Can an employer change the wage or location after approval?

Only limited changes may be permitted without a new LMIA. Significant changes to wage, occupation, location or working conditions may require a new application.

Final Thoughts

LMIA Canada is primarily an employer assessment, not a work permit application submitted by the foreign worker.

The employer must select the correct stream, offer an appropriate wage, recruit Canadians and permanent residents, demonstrate a genuine business need and protect the temporary foreign worker.

A positive decision gives the worker an important document for an employer-specific work permit application, but IRCC still makes an independent decision on the worker’s eligibility.

Workers should verify the employer, refuse requests to pay the LMIA fee and avoid anyone promising a guaranteed LMIA, work permit or permanent residence.

Last updated: July 2026