A Labour Market Impact Assessment (LMIA) is a document a Canadian employer may need to obtain from Employment and Social Development Canada (ESDC/Service Canada) before hiring a foreign worker under the Temporary Foreign Worker Program (TFWP). In plain terms: it is the government's way of checking that hiring a foreign worker will not displace an available Canadian, and that wages and working conditions will not be undercut. A positive LMIA (sometimes called a "confirmation letter") is what lets the worker apply for an employer-specific work permit. What this means for you: if you are a worker, you generally cannot get an LMIA yourself, the employer applies, pays the fee, and runs the recruitment; if you are an employer, the LMIA is a paid, evidence-heavy application that has tightened significantly in 2024-2025. This guide walks through the employer process step by step, explains high-wage versus low-wage rules, lists the main LMIA-exempt categories, and shows how an LMIA can support a permanent residence application. It is educational information, not legal advice, and an officer or ESDC makes the final decision in every case.
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Read the work permit guideWhat Is an LMIA and Why Does It Exist?
An LMIA is issued by Employment and Social Development Canada (ESDC/Service Canada). Its purpose is to protect the Canadian labour market by ensuring that:
- No qualified Canadian citizen or permanent resident is available for the position
- Hiring a foreign worker will not negatively affect Canadian wages or working conditions
- The employer has made genuine efforts to recruit Canadians first
- The foreign worker will be paid at or above the prevailing wage for the occupation and region
The legal basis for the LMIA requirement is found in IRPR r.200(1)(c), employer-specific work permits generally require a positive LMIA unless an exemption applies under IRPR r.204, r.205, or r.206.
LMIA Process for Employers
- 1
Determine the wage category
Compare the offered wage to the wage threshold for the province or territory. Since November 8, 2024, ESDC sets that threshold at 20% above the provincial/territorial median hourly wage. At or above the threshold is generally a high-wage LMIA; below it is a low-wage LMIA. The category determines the stream you apply under, the recruitment rules, and the employer obligations. ESDC updates median wages periodically, so confirm the current figure for your province on canada.ca before you calculate.
- 2
Conduct recruitment efforts
Advertise the position for a minimum of 4 weeks on Job Bank (mandatory) and at least 2 additional recruitment methods appropriate for the occupation. Document all applications received and reasons for rejecting Canadian candidates.
- 3
Prepare the LMIA application
Complete the appropriate LMIA application form for your stream (the current form numbers are listed on canada.ca). Include business legitimacy documents, recruitment evidence, transition plan (high-wage), and the job offer details.
- 4
Pay the processing fee
$1,000 CAD per position (paid by the employer: NOT the worker). Fee is non-refundable even if the LMIA is denied. Seasonal agricultural stream: $0 fee.
- 5
Submit to Service Canada
Submit the application to the Service Canada processing centre for your region. Include all supporting documents, proof of recruitment, and the processing fee payment.
- 6
Respond to any requests
Service Canada may request additional information or clarification. Respond promptly, delays can result in a negative LMIA decision.
- 7
Receive the LMIA decision
If positive, you'll receive a confirmation letter with an LMIA number. Share this with the foreign worker so they can apply for their work permit. A positive LMIA is valid for 6 months from the date of issue.
High-Wage vs Low-Wage LMIA
| Feature | High-Wage | Low-Wage |
|---|---|---|
| Wage threshold | At or above 20% over the provincial/territorial median (since Nov 8, 2024) | Below that threshold |
| Transition plan required | Yes, must show a plan to reduce reliance on TFWs over time | No transition plan |
| Cap on low-wage TFWs | No cap | Generally 10% of the workforce at a worksite (some sectors differ); verify current cap |
| Maximum employment duration | Longer durations possible | Shortened under the 2024-2025 changes; verify the current maximum on canada.ca |
| Transportation & housing | Not required | Employer must provide or ensure affordable housing |
| Health insurance | Not required | Employer must provide until provincial coverage kicks in |
The low-wage stream was tightened in 2024-2025. Among other measures, ESDC generally will not process low-wage LMIAs in a census metropolitan area whose unemployment rate is at or above a set level (reported as 6%), with exceptions for sectors such as primary agriculture, food processing, health care and construction. Caps, durations and the exact threshold change, so confirm the current rules and median wage for your province on canada.ca. Check the current median wage by province →
LMIA-Exempt Categories
Not all work permits require an LMIA. The following categories are exempt under IRPR r.204, r.205, and r.206:
International Agreements (IRPR r.204)
- CUSMA/USMCA (formerly NAFTA): work permits for eligible US and Mexican citizens, including Professionals in a listed occupation (the list dates back to NAFTA and covers roughly 60 professions), Intra-Company Transferees, Traders and Investors. CUSMA does not by itself grant permanent residence.
- Intra-Company Transfers (ICT), executives, managers, and specialized knowledge workers transferring within a multinational
- International Experience Canada (IEC): Working Holiday, Young Professionals, International Co-op for citizens of partner countries
- CETA (Canada-EU), similar provisions for EU nationals
- Other bilateral agreements, various country-specific arrangements
Canadian Interests (IRPR r.205)
- Significant benefit to Canada (R205(a)), covers entrepreneurs, self-employed artists, athletes with significant economic/cultural/social benefit
- Reciprocal employment (R205(b)): Canadians abroad receive reciprocal employment opportunities
- Charitable or religious work, genuine religious or charitable roles
- Bridging Open Work Permits (BOWP), for workers transitioning from a work permit to PR
- Post-Graduation Work Permits (PGWP), for graduates of Canadian DLIs
- Spousal Open Work Permits, for spouses of skilled workers or international students
Francophone Mobility (IRPR r.205(c)(ii))
French-speaking foreign workers destined to work outside Quebec are LMIA-exempt under the Francophone Mobility stream. This requires a genuine job offer and CLB 5+ in French. The employer must submit an offer of employment through the IRCC Employer Portal and pay the $230 compliance fee.
Global Talent Stream (GTS)
The Global Talent Stream is a fast-tracked LMIA process under the Temporary Foreign Worker Program designed for innovative companies hiring highly skilled global talent. Two categories:
Category A
For employers referred by a designated referral partner (e.g., Innovation, Science and Economic Development Canada, provincial tech associations). The employer must demonstrate that hiring the foreign worker will create jobs for Canadians or transfer knowledge/skills. No occupation list, any unique, specialized talent qualifies.
Category B
For employers hiring workers in occupations on the Global Talent Occupations List. The list focuses on in-demand technology roles such as software engineers, data scientists and information-systems specialists, and ESDC updates it from time to time, so confirm the current list and any prevailing-wage or salary floor on canada.ca before relying on it. What this means for you: Category B is the simpler route if your exact occupation is on the list; if it is not, Category A (referral-based) may still apply.
- LMIA processing target: 10 business days (vs. weeks/months for standard LMIA)
- Work permit processing: 2 weeks after positive LMIA
- Employer must submit a Labour Market Benefits Plan (LMBP) committing to job creation and skills transfer
- $1,000 LMIA processing fee still applies
- Strong pathway to PR through Express Entry (CEC after 1 year of Canadian experience)
Seasonal Agricultural Worker Program (SAWP)
SAWP allows Canadian agricultural employers to hire temporary workers from Mexico and select Caribbean countries for seasonal farm work. Key features:
- Maximum contract: 8 months per year
- LMIA processing fee: $0 (waived for SAWP)
- Workers come from Mexico, Jamaica, Trinidad & Tobago, Barbados, and the Organization of Eastern Caribbean States
- Employer must provide housing (inspected and approved), transportation to/from Canada, and workplace safety insurance
- Workers are covered by provincial employment standards, minimum wage, and workplace safety legislation
- Bilateral agreements between Canada and sending countries govern terms and conditions
- Does not lead to permanent residence directly, workers return home at contract end
How Workers Can Find LMIA-Approved Jobs
As a foreign worker, you do not apply for the LMIA yourself, the employer does. However, you can increase your chances of finding an employer willing to go through the LMIA process:
- 1
Search Job Bank
Canada's official job board (jobbank.gc.ca) lists positions from LMIA-applying employers. Filter for "foreign workers eligible" to find positions where employers are open to the LMIA process.
- 2
Target labour shortage occupations
Focus on NOC codes with documented labour shortages, such as roles in health care, the skilled trades, agriculture and some technology fields, where it may be easier for an employer to demonstrate that Canadians or permanent residents are not available. Outcomes still depend on the employer's recruitment evidence and an ESDC officer's assessment of each application.
- 3
Network in your industry
Many LMIA positions are filled through industry networks, professional associations, and recruiters specializing in international talent. LinkedIn is increasingly used by Canadian employers seeking global talent.
- 4
Consider the Global Talent Stream
If you work in technology or a highly specialized field, an eligible employer may be able to get an LMIA through the Global Talent Stream, which has a service standard of roughly 10 business days. Many technology and innovation-focused employers use this stream, though eligibility and timelines depend on the employer and ESDC; confirm current details on canada.ca.
Fees & Processing Times
| Item | Details |
|---|---|
| LMIA processing fee (employer) | $1,000 CAD per position |
| SAWP LMIA fee | $0 (waived) |
| Work permit fee (worker) | $155 CAD |
| Biometrics (worker) | $85 CAD ($170 family maximum) |
| Employer compliance fee (LMIA-exempt / IMP) | $230 CAD (instead of the LMIA fee) |
| Standard LMIA processing | Varies; check current times on canada.ca |
| Global Talent Stream LMIA | 10 business days (service standard) |
| LMIA validity (after approval) | 6 months |
The $1,000 LMIA fee must be paid by the employer. It is illegal for an employer to recover the LMIA fee from the worker. Calculate all fees → Check processing times →
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View Deep DivesFrequently Asked Questions
Can a worker apply for their own LMIA?
No. The LMIA application must be submitted by the Canadian employer, not the foreign worker. The employer bears the responsibility, cost ($1,000), and recruitment obligations. Workers who are asked to pay for the LMIA or submit it themselves should report this to Service Canada, it's a violation of program rules.
What happens if the LMIA is denied?
A negative LMIA means Service Canada determined that Canadians or PRs are available for the position, or the application was incomplete/non-compliant. The $1,000 fee is non-refundable. The employer can reapply with a stronger application, additional recruitment evidence, or for a different position.
Can an LMIA help me get permanent residence?
It can help indirectly, but it no longer adds points on its own. Effective March 25, 2025, IRCC removed the additional CRS points that arranged employment (including an LMIA-supported job offer) used to add to an Express Entry profile, so an LMIA-backed offer generally no longer boosts your CRS score; IRCC has described this as a temporary measure, so check the current rules on canada.ca. Working in Canada on an LMIA-based work permit can still build Canadian work experience, which may help you qualify for the Canadian Experience Class (CEC), generally after about a year of eligible experience. An officer assesses each profile, so this is educational information rather than a guarantee.
How long is a positive LMIA valid?
A positive LMIA has generally been valid for 6 months from the date of issue, meaning the worker must apply for their work permit within that window or a new LMIA is needed. ESDC has adjusted some TFWP timelines in recent changes, so confirm the current validity period on canada.ca. If the LMIA expires before the work permit application is submitted, a new LMIA must be obtained.
Can I change employers on an LMIA work permit?
No, an LMIA work permit is employer-specific. If you want to change employers, your new employer must obtain a new positive LMIA, and you must apply for a new work permit. Working for a different employer without authorization is a violation that can affect future immigration applications.
What is the difference between LMIA and LMIA-exempt work permits?
An LMIA work permit requires the employer to first obtain a positive Labour Market Impact Assessment from Service Canada. LMIA-exempt work permits (under CUSMA, ICT, PGWP, spousal permits, etc.) skip this step, the employer submits an offer through the Employer Portal and pays a $230 compliance fee instead of the $1,000 LMIA fee.
Is it illegal for an employer to charge me the LMIA fee?
Yes. Under IRPR r.209.2, employers cannot recover LMIA processing costs from the foreign worker. If an employer asks you to pay the $1,000 LMIA fee, this is a program violation and should be reported to Service Canada's confidential tip line.
What is the difference between high-wage and low-wage LMIA, and how is the line set?
The line is drawn by the wage you are offered compared to a threshold for the province or territory. Since November 8, 2024, ESDC sets that threshold at 20% above the provincial or territorial median hourly wage, so a wage that used to be "high-wage" at the median may now fall into the low-wage stream. The streams carry different rules: high-wage applications generally require a transition plan, while low-wage applications have caps on the share of low-wage temporary foreign workers at a worksite, shorter maximum durations, and employer obligations such as housing and health coverage. Because the median wage and these thresholds change, confirm the current figures for your province on canada.ca before calculating.
Did the Temporary Foreign Worker Program change in 2024 and 2025?
Yes. The TFWP, and the low-wage stream in particular, was tightened over 2024 and 2025. Reported measures include a refusal to process most low-wage LMIAs in census metropolitan areas with an unemployment rate at or above a set level (reported as 6%, with exceptions for sectors such as primary agriculture, food processing, health care and construction), a cap on the share of a workforce that can be low-wage temporary foreign worker positions, and shorter maximum durations for low-wage positions. ESDC also stopped accepting third-party attestations as proof of business legitimacy. These rules remain volatile and the exact percentages and durations can change, so verify the current measures on canada.ca rather than relying on a summary.
What LMIA-exempt options exist, and what does the employer pay instead?
LMIA-exempt work permits fall under the International Mobility Program (IMP). Instead of a $1,000 LMIA, the employer submits an offer of employment through the Employer Portal and pays the $230 employer compliance fee (verify the current amount). Common categories include CUSMA professionals, traders, investors and intra-company transferees, other free-trade agreements such as CETA, intra-company transfers, reciprocal employment like International Experience Canada, Francophone Mobility, and significant-benefit cases. Open work permits, such as the Post-Graduation Work Permit and spousal open work permits, are also LMIA-exempt.
How long does an LMIA take to process, and is the wait the same for every stream?
No, processing times vary by stream and change frequently, so check the published times on canada.ca rather than relying on a fixed number. The Global Talent Stream has a service standard of roughly 10 business days, while standard streams can take considerably longer. Times also depend on application completeness and whether ESDC requests additional information. A positive LMIA is generally valid for 6 months, so the worker should apply for the work permit within that window.
Important: Important: Based on publicly available IRPA, IRPR, and ESDC policy. Not legal advice. For complex employer or worker situations, consult an immigration lawyer licensed by your provincial law society.
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This page is based on law and policy published by the Government of Canada.