Labour Market Impact Assessment (LMIA)

The Labour Market Impact Assessment (LMIA) is a legal document secured by a Canadian employer, who is willing to hire a foreign skilled workers to meet requirements of labour market and to fill vacant positions in different industries and domains. LMIA or LMIA jobs ( work visa applications) are supported by valid documents, including submission by Canadian employer to Employment and Social Development Canada (ESDC) to seek permission to hire foreign skilled worker.

The employers offering LMIA approved jobs must have been regular taxpayer in Canada. Also, the occupation or job profile selected by the candidate should be listed in the National Occupation Classification (NOC) list. Generally, Canadian employers and candidates need a copy of LMIA to support job offers to expedite Express Entry process. In other words, a valid job offer must be supported by a Labour Market Impact Assessment (LMIA), hence such jobs are called LMIA approved jobs.

In order to secure LMIA job offers, candidates need to qualify eligibility criteria.

Advantages of LMIA

The Labour Market Impact Assessment is a testing mechanism started by Canadian government to allow Canadian employers to hire foreign skilled workers to work in specific domain. In order to get LMIA and seeking right candidate for LMIA jobs the Canadian employers should advertise the vacancies or vacant positions in local newspapers, job boards such as Canadian Job Bank for at least four weeks. If the employer fails to find a suitable or right candidate in Canada to fill the vacancies after advertising extensively, then they can apply in Employment and Social Development Canada (ESDC) to get a positive LMIA to hire skilled foreign workers. ESDC scans all LMIAs applications to examine whether an LMIA is positive or negative, or in simple terms what impact hiring would have on economy.

  • A positive LMIA means that hiring a foreign worker will have a positive effect on the Canadian labour market and economy. On the other hand, a negative LMIA shows that hiring foreign skilled workers will create a negative impact on country’s economy and employment market. Except charitable and religious work, LMIA (Labour Market Impact Assessment) certificate is a necessary document to secure Canada work permit.
  • A positive LMIA undoubtedly strengthens applicant’s position in Express Entry pool. It surely improves the score on CRS point scale.
  • In a nutshell, LMIA jobs are considered secure and sustainable since they are offered by Canadian employers, who fulfil all compliance process, rules and regulations suggested by the government.

A Positive LMIA in the Name of Candidate also Mentions Below Mentioned Aspects:

  • Name of specific employer candidates can work for
  • Nature of employment and title or designation offered to candidate
  • Duration of work and timings of work assignment on daily basis
  • Job location
  • Salary to be drawn by candidate (monthly/annually)
  • Incentives or perks, if applicable

LMIA-exempt Job Offers

In some cases, Canadian employers are exempted from securing LMIA to hire foreign skilled workers. Three broad categories of LMIA-exempted job offers are –

  • Exemptions through international trade agreements, such as NAFTA
  • Exemptions through agreements between the Canadian federal government and provincial governments
  • Exemptions due to Canadian interests, such as intra company transfer


LMIA Application Requirements

LMIA applications are submitted in hard copy, by mail, to the appropriate Service Canada Processing Centre. Applications must include evidence that the following criteria have been met:

  • Processing Fee: All applications for LMIAs include a $1000 CAD processing fee which will not be refunded even if the result is negative. Certain applicants under the LMIAs for in-home caregivers may be exempt from this fee.
  • Business Legitimacy Documents: Documents proving that the employer’s status as a legitimate Canadian business.
  • Transition Plan: Employers must submit a plan for how they intend to address the need to hire foreign nationals. Eventually, employers are expected to hire Canadian citizens and permanent residents rather than TFWs.
  • Recruitment Efforts: Employers must submit evidence that they made substantial efforts to recruit Canadian citizens and permanent residents to fill the position prior to hiring a TFW.
  • Wages: Applications must include information regarding the TFWs wages. This will differentiate the high-wage positions from low-wage positions and ensure that TFWs are paid the same amount for labour as their Canadian equals.
  • Workplace Safety: TFWs are entitled to the same standards of workplace health and safety as Canadians in the same position. For this reason, employers must provide evidence that TFWs will be covered by insurance which is at minimum equivalent to the health coverage offered by the province or territory where the business is located.