In short: a Labour Market Impact Assessment (LMIA) is a document an employer in Canada usually needs from Employment and Social Development Canada (ESDC), through Service Canada, before hiring a temporary foreign worker under the Temporary Foreign Worker Program (TFWP). A positive LMIA confirms there is a genuine need for a foreign worker and that no qualified Canadian citizen or permanent resident was available, after which the worker can apply to IRCC for a work permit. The standard fee is $1,000 per position and is paid by the employer, never the worker. Not every worker needs an LMIA: a large share of work permits are LMIA-exempt under the International Mobility Program (for example CUSMA professionals, intra-company transferees, and open work permits). This guide explains how the LMIA process works, employer obligations and advertising, the fee and its exemptions, the LMIA-exempt categories, and the difference between a positive and negative LMIA. It is educational information, not legal advice; ESDC and an immigration officer make the actual decisions.
What Is an LMIA?
Under IRPR s.203, ESDC assesses the impact that hiring a temporary foreign worker will have on the Canadian labour market. Before most employers can hire a foreign national under the Temporary Foreign Worker Program (TFWP), they must obtain an LMIA. The worker then uses the positive LMIA to apply for a work permit.
Positive LMIA
ESDC approves the hire. Confirms there is a genuine need for the worker and that no qualified Canadian or PR was available. The worker can use this to apply for a work permit.
Negative LMIA
ESDC denies the application. Means there are likely Canadian workers available or the employer did not adequately demonstrate need. The employer cannot proceed with the foreign hire.
Employer Obligations & Advertising Requirements
Before applying for an LMIA, employers generally have to demonstrate they made genuine efforts to hire Canadian citizens and permanent residents first. What this means in practice: you advertise the job, keep records of who applied, and explain why Canadians and permanent residents who applied were not hired. The minimum advertising period depends on whether the position is high-wage or low-wage (the wage stream is set by comparing the offered wage to the provincial or territorial median hourly wage). For most streams, ESDC typically expects an employer to:
- ✓ Advertise the position on the Government of Canada Job Bank (or the equivalent in some provinces) for the required period
- ✓ Conduct at least 2 additional methods of recruitment consistent with the occupation (e.g., national job boards, professional associations, local or regional job boards)
- ✓ High-wage positions: advertise for at least 4 consecutive weeks within the 3 months before applying. Low-wage positions: advertise for at least 8 consecutive weeks within the 3 months before applying. Verify the period for your stream on the ESDC website
- ✓ Document all recruitment efforts, every response received, who was interviewed, and the reasons Canadians or permanent residents who applied were not hired
Important
ESDC reviewers examine the quality of the recruitment effort, not just that advertising occurred. Job ads must list accurate wages (meeting or exceeding the prevailing wage), realistic qualifications, and full-time hours where applicable. Ads designed to screen out Canadians may result in a negative LMIA.
Processing Fee, $1,000 per Position
The standard LMIA processing fee is $1,000 CAD per position requested. The fee is paid by the employer and is generally non-refundable once ESDC begins processing, even if the LMIA is refused. What this means for you as a worker: this is the employer's cost, not yours. By law the employer cannot pass it on to you, and being asked to pay it (directly or through a deduction or a third party) is a warning sign worth reporting.
- ✓ The fee is charged per position requested, so an employer hiring 3 foreign workers in one occupation may request 3 positions on a single application at $1,000 each ($3,000 total)
- ✓ Employers are prohibited from recovering the LMIA fee from the worker, whether directly, through payroll deductions, or through a recruiter
- ✓ Charging the worker the fee is a violation that can lead to penalties and a ban from the Temporary Foreign Worker Program
- ! Some LMIAs are exempt from the $1,000 fee. These generally include LMIAs filed only to support a foreign national's permanent residence application, in-home caregivers hiring to provide care for someone with high medical needs (with a medical certificate), caregivers providing childcare to a child under 13 where the family's gross annual income is at or below a set threshold, and certain on-farm primary agriculture positions. Exemptions and amounts change, so confirm the current fee and exemptions on the ESDC website before relying on them.
LMIA-Exempt Categories
Many workers can obtain a Canadian work permit without an LMIA under IRPR R204 and R205. Common LMIA-exempt categories include:
CUSMA / USMCA (formerly NAFTA): R204(a)
Citizens of the United States and Mexico who fall under specific occupational categories listed in CUSMA can obtain work permits without an LMIA. Covers professionals, intra-company transferees, traders, and investors.
Intra-Company Transfers (ICT): R205(a)
Employees transferred from a foreign office of a company to a Canadian affiliate, subsidiary, or parent. Must be managers, executives, or specialized knowledge workers.
Significant Benefit to Canada: R205(c)
Includes positions that are of significant social, cultural, or economic benefit to Canada. This covers open work permits for spouses of skilled workers/students, post-graduation work permits, and vulnerable workers.
Reciprocal Employment: R205(b)
Work permits based on reciprocal employment agreements, such as bilateral youth exchange programs (International Experience Canada / Working Holiday).
Francophone Mobility: R205 (significant benefit)
IRCC has specific LMIA-exempt pathways for francophone workers destined to work outside Quebec, to support francophone minority communities across Canada.
Check work permit processing times
Use our free processing times tool to check current wait times for LMIA-based and LMIA-exempt work permits.
Check Processing TimesFrequently Asked Questions
How long does an LMIA take to process?+
Processing times vary by stream and by ESDC workload, and they change often, so always check the current figures on the ESDC website. As a general guide, the Global Talent Stream has a faster service standard (ESDC aims to process those LMIAs within about 10 business days), and an eligible worker may then qualify for 2-week work permit processing by IRCC under the Global Skills Strategy. Regular high-wage and low-wage streams generally take longer. ESDC publishes average LMIA processing times by stream that are updated regularly.
Can a worker apply for permanent residence with an LMIA?+
Yes, in many cases. A positive LMIA tied to a permanent job offer can help establish eligibility under programs such as the Federal Skilled Worker Program (Express Entry) or certain Provincial Nominee streams, and some employer-specific LMIAs are issued solely to support a permanent residence application (these are fee-exempt). One important change: IRCC removed the additional Comprehensive Ranking System (CRS) points for a job offer (formerly 50 points for most jobs, 200 for senior management) on March 25, 2025, so an arranged job offer no longer adds CRS points in Express Entry, although it can still be relevant to eligibility for some programs. Because these rules change, confirm the current criteria on canada.ca and consider advice from a licensed representative.
What is dual intent in the LMIA context?+
Dual intent means a person can simultaneously intend to work temporarily in Canada while also intending to apply for permanent residence. IRPR s.22(2) explicitly allows dual intent. An employer offering a permanent position and supporting an LMIA does not preclude the worker from also pursuing PR.
Can an employer charge the worker for LMIA costs?+
No. Employers are prohibited by law from charging or recovering the $1,000 LMIA fee from the worker, whether directly, through payroll deductions, or via a recruiter. Doing so is a violation that can result in penalties and the employer being banned from the Temporary Foreign Worker Program. If you are asked to pay it, that is a red flag; you can report concerns to the confidential tip line on the canada.ca abuse-reporting page.
What is the difference between an LMIA and an LMIA-exempt work permit?+
An LMIA-based work permit runs through the Temporary Foreign Worker Program: the employer first gets a positive LMIA from ESDC (with advertising and the $1,000 fee), and the worker then applies to IRCC for an employer-specific work permit. An LMIA-exempt work permit runs through the International Mobility Program (IMP): no LMIA is needed, but for most employer-specific cases the employer must submit an offer of employment through the Employer Portal and pay the employer compliance fee (currently $230). LMIA-exempt categories include CUSMA professionals, intra-company transferees, reciprocal programs such as International Experience Canada, and significant-benefit cases. Open work permits are also LMIA-exempt. Confirm the current fees and categories on canada.ca.
How long is an LMIA valid, and what happens if it expires before the worker applies?+
A positive LMIA includes a validity period stated in the confirmation letter, and the worker generally has to apply for the work permit before that date. Validity periods can change with TFWP policy, including for low-wage positions, so check the date on the LMIA itself and the current rules on the ESDC website. If an LMIA expires before the work permit is approved, the employer may need to apply for a new LMIA. This is one reason employers and workers usually try to submit the work permit application promptly.
What costs does the worker actually pay for an LMIA-based work permit?+
The LMIA fee is the employer's cost. As the worker, you generally pay IRCC the work permit application fee ($155) and, if applicable, biometrics ($85 per person, to a family maximum of $170). If your permit is an open work permit you also pay the open work permit holder fee ($100), but a standard employer-specific LMIA-based permit is not an open work permit. Always confirm the current fees on the IRCC website, as they can change.
Does a positive LMIA guarantee the worker will get a work permit?+
No. A positive LMIA is an important step, but it does not guarantee a work permit. The work permit is a separate application decided by an IRCC officer, who assesses admissibility, including health, security, and whether the officer is satisfied the applicant will leave at the end of an authorized stay where that applies. An application can be refused even with a valid LMIA. This is educational information; for advice on an individual case, consult a lawyer or a CICC-regulated immigration consultant.
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This page is based on law and policy published by the Government of Canada.