Labour Market Impact Assessment

Helping employers secure LMIA approvals to hire qualified foreign workers legally.

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that evaluates the impact of hiring a foreign national in Canada.

A positive LMIA confirms that a foreign worker is needed to fill the position and that no Canadian citizen or permanent resident is available or qualified for the role. A positive LMIA is also known as a confirmation letter.

Why LMIA Is Required

The LMIA process allows Canadian employers to hire foreign workers through the Temporary Foreign Worker Program (TFWP) when they are facing labour shortages and cannot find suitable Canadian workers.

Employers must follow strict program requirements. ESDC has compliance systems in place to ensure employers respect these rules. Employers who fail to comply may face penalties.

Each LMIA application is assessed to confirm:

  • There is a genuine labour shortage

  • No Canadian or permanent resident is available

  • The job offer is legitimate

An LMIA is generally valid for six months from the date of issuance. During this time, the foreign worker must apply for a work permit (or permanent residence, depending on the LMIA type).

High-Wage and Low-Wage LMIA Streams

The LMIA stream depends on the wage offered to the foreign worker.

High-Wage Stream

If the wage offered is equal to or above the provincial or territorial median hourly wage, the application must be submitted under the high-wage stream.

Requirements include:

  • A full-time job offer (minimum 30 hours per week)

  • Proof of business legitimacy (for first-time LMIA applicants)

  • A Transition Plan

The Transition Plan explains how the employer intends to:

  • Reduce reliance on foreign workers

  • Recruit and train Canadians or permanent residents

Employers who have received a positive LMIA within the last two years may not need to re-submit proof of business legitimacy unless requested by ESDC.

Low-Wage Stream

If the wage offered is below the provincial median hourly wage, the application must be submitted under the low-wage stream.

Low-wage positions have stricter requirements and limitations. Employers with 10 or more employees are subject to a cap on the number of temporary foreign workers they can hire in low-wage roles.

This cap was introduced to encourage employers to transition toward a Canadian workforce over time.

Recruitment Requirements

Before applying for an LMIA, employers must demonstrate that they made efforts to hire Canadians or permanent residents.

Minimum recruitment requirements include:

  • At least three recruitment activities

  • Recruitment conducted for four consecutive weeks

  • Posting on the Government of Canada Job Bank

  • Two additional recruitment platforms

One recruitment method must remain active until a decision is made on the LMIA.

For low-wage positions:

  • Recruitment must begin at least three months before submission

  • Employers must invite candidates rated two stars or higher (within 30 days) through the Job Bank system

Owner-Operator LMIA

The owner-operator category allows individuals who own or purchase a business in Canada to apply for an LMIA under specific conditions.

To qualify, the owner/operator must:

  • Play a vital role in daily business operations

  • Actively participate in management and customer service

  • Hold a controlling interest or be protected from dismissal

ESDC evaluates:

  • Business legitimacy

  • Job creation potential

  • Business development plans

  • Intention to hire or retain Canadian workers

Start-up businesses or speculative situations are unlikely to qualify. A physical business presence, employees, and active operations must already exist at the time of LMIA submission.

Owner-operators are generally exempt from recruitment requirements but must submit a strong transition plan.

A successful owner/operator LMIA does not guarantee a work permit but may contribute 50 to 200 points toward an Express Entry profile.

Hire Foreign Workers with Confidence

Our team guides employers through the LMIA process, ensuring compliance, proper documentation, and a stronger chance of approval under the correct stream.