LMIA Canada: What It Is, Who Needs It, and How It Works

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that authorizes a specific Canadian employer to hire a foreign worker for a specific position. The LMIA confirms that no qualified Canadian citizen or permanent resident was available to fill the role. It is an employer-driven process: the employer applies, not the worker. If approved, the employer receives a positive LMIA, which the worker then uses to support a work permit application.

Why Employers Need an LMIA

Canada's immigration system prioritizes Canadian workers. Before an employer can hire a foreign national for most positions, ESDC requires them to demonstrate that they made genuine efforts to recruit Canadians first. The LMIA application process involves:

• Documenting recruitment efforts (job board postings, interviews, records of Canadian applicants who were considered)
• Demonstrating the offered wages meet or exceed the prevailing wage for the position in that region
• Showing the employer is in compliance with workplace standards and has no recent history of violations

The employer pays a government fee of CAD $1,000 per position. There is no fee for some categories such as highest-demand occupations under the Global Talent Stream and certain caregiver positions.

LMIA-Exempt Categories

A significant number of workers can obtain a Canadian work permit without an LMIA. Common LMIA-exempt categories include:

• Intra-company transferees. Executives, senior managers, and specialized knowledge workers transferred within a multinational company.
• International agreements. Workers covered by CUSMA (formerly NAFTA), CETA, CPTPP, and other trade agreements. This includes US and Mexican citizens in qualifying professional categories.
• Significant benefit to Canada. Certain academic researchers, artists, athletes, and journalists.
• Reciprocal employment. Working holiday visas and youth mobility programs.
• Spouse of a skilled foreign worker or international student. Open work permit with no employer restriction.
• Post-graduation work permit (PGWP). Graduates of eligible Canadian institutions can work for any employer without an LMIA.

High-Wage vs. Low-Wage Streams

LMIA applications are categorized based on whether the offered wage is above or below the median hourly wage for the province where the job is located. As a general reference, the national median is approximately CAD $27.50/hour, but provincial medians vary.

• High-wage stream. Fewer restrictions on the proportion of temporary foreign workers relative to the total workforce. Employers submit a transition plan committing to reduce reliance on temporary foreign workers over time.
• Low-wage stream. Employers face a cap on the share of their workforce that can consist of temporary foreign workers (typically 10% for most sectors, with exceptions for certain industries). Employers must also pay for return transportation and ensure access to affordable housing for the worker.

LMIA Processing Times

Processing times vary by stream and application volume. As of 2025:

• Global Talent Stream (GTS) applications target a 2-week processing time.
• High-wage stream applications typically take 3 to 5 months.
• Low-wage stream applications typically take 3 to 6 months.
• Agricultural stream applications are processed on a different timeline and vary by season.

Actual processing can be longer depending on application volume and whether ESDC requests additional documentation.

How an LMIA Affects Your Express Entry Score

A valid job offer supported by a positive LMIA adds points to your Comprehensive Ranking System (CRS) score under the Express Entry system. The value depends on the NOC TEER category of the offered position:

• 200 CRS points for job offers in NOC TEER 0 Major Group 00 (senior management occupations).
• 50 CRS points for all other qualifying job offers in NOC TEER 0, 1, 2, or 3.

Use the official IRCC CRS tool to see the impact of an LMIA-backed job offer on your total score. Note that some job offers are LMIA-exempt and still attract CRS points — for example, offers from certain employers under international agreements.

Global Talent Stream

The Global Talent Stream (GTS) is a fast-track LMIA pathway designed specifically for technology companies hiring highly skilled foreign workers. It targets two categories:

• Category A. Unique and specialized talent referred by a designated partner organization. The company and candidate are assessed together.
• Category B. Positions on ESDC's Global Talent Occupations List, which includes software engineers, data scientists, cybersecurity professionals, and related roles. No referral is needed.

The GTS targets a 2-week LMIA processing time and comes with a dedicated service delivery manager. It is available to employers of all sizes. GTS-approved workers typically receive a 2-year employer-specific work permit and can apply for Express Entry during that period.

What Workers Need to Know

Workers do not apply for the LMIA. The employer does. Once a positive LMIA is issued, the employer provides the worker with a copy of the LMIA and the job offer letter. The worker then applies for a work permit using those documents. The work permit is specific to the employer and position named in the LMIA. Workers cannot use it to work for a different employer or in a different role without a new LMIA or an applicable LMIA exemption.

This article is for general information only and does not constitute immigration advice. Immigration rules change frequently. For advice specific to your situation, consult a licensed RCIC.