The Labour Market Impact Assessment (LMIA)

The Labour Market Impact Assessment (LMIA) is a report on the impact of hiring a foreign worker on the local labour market in Canada. The purpose of the LMIA is to ensure that hiring a foreign worker will not adversely affect workers in Canada.

Certain employers must apply for a Labour Market Impact Assessment (LMIA) if they wish to hire a foreign worker in Canada.

Overview

Canada operates theTemporary Foreign Worker Program (TFWP)to supplement the workforce where no qualified worker is available in Canada to fill a position.

Employers wishing to hire a foreign worker in Canada generally need to apply to the Government of Canada for a Labour Market Impact Assessment (LMIA), specifically toEmployment and Social Development Canada (ESDC). The government officer assessing the application must determine that hiring the foreign worker will have a positive or neutral effect on the Canadian labour market.

The employer must demonstrate that no qualified Canadian worker has been passed over in favour of a foreign worker and that the foreign worker will receive wages and benefits meeting federal and provincial standards.

The LMIA process differs depending on whether the foreign worker is classified as “high-wage” hay “low-wage“. A temporary worker paid below the median wage of the province or territory is considered a low-wage worker, while one paid at or above the median is considered a high-wage worker.

Employers may be inspected to ensure compliance with government rules once the foreign worker has started work in Canada.

High-wage workers

Employers wishing to hire high-wage workers must submit a transition plan with their Labour Market Impact Assessment (LMIA) application to demonstrate that they are taking steps to reduce their reliance on foreign workers over time. Investing in skills training or hiring Canadian apprentices are examples of how an employer can demonstrate this.

Alternatively, employers may demonstrate that they are supporting high-skilled temporary workers in becoming Canadian permanent residents. If the employer is inspected or applies to renew the LMIA, they will have to report on the progress of the transition plan previously submitted.

Transition plans are designed to ensure that employers seeking foreign workers are using the Temporary Foreign Worker Program (TFWP) as intended, namely as a temporary and limited solution to meet urgent labour needs.

Median wages in the provinces and territories

Province/Territory	Median hourly wage
Alberta	$36,36
British Columbia	$36,51
Manitoba	$30,10
New Brunswick	$30,23
Newfoundland and Labrador	$32,35
Northwest Territories	$33,25
Nova Scotia	$30,92
Nunavut	$34,35
Ontario	$36,62
Prince Edward Island	$29,49
Quebec	$33,92
Saskatchewan	$32,42
Yukon	$31,10

Low-wage workers

Employers hiring low-wage temporary workers do not need to submit a transition plan with their Labour Market Impact Assessment (LMIA) application. They must, however, comply with various rules designed to ensure that Canadian workers are given priority. The Government of Canada caps the number of low-wage temporary workers a business may hire. Specifically, businesses with 10 or more employees at the time of a new LMIA application may have no more than 10% low-wage temporary workers in their total workforce.

In addition, employers paying below the provincial/territorial median wage must cover the cost of round-trip transportation for the temporary worker, ensure affordable housing is available, pay for private health insurance until the worker is eligible for provincial health cover, register the worker with the provincial/territorial workplace safety authority and provide an employment contract between employer and worker.

The TFWP uses the latest labour survey results to determine regional unemployment rates across Canada. LMIA applications in Accommodation and Food Services and in Retail Trade will not be processed in regions with an unemployment rate of 6% or higher. However, given its particular labour conditions, the Government of the Northwest Territories has requested that LMIA applications for positions in Yellowknife in these 2 sectors continue to be processed.

Occupations eligible for an LMIA application

For any Labour Market Impact Assessment (LMIA) application processed on an expedited basis, Employment and Social Development Canada (ESDC) only guarantees the standard 10 business day processing time if:

• The application is complete;
• ESDC does not need additional time to consult or clarify information in the application;
• The employer has not been selected for a compliance inspection.

According to information fromImmigration, Refugees and Citizenship Canada (IRCC), LMIA applications are processed within 10 business days for workers in the following occupational groups:

• In-demand occupations

The standard 10-day processing time applies to positions in high-skilled technical occupations where the wage offered is at or above the median wage of the province/territory. These positions play an important role in delivering large-scale infrastructure projects and natural resource development, and are therefore considered essential to Canada’s economic growth.

NOC 2021 code	Job title
72011	Contractors and supervisors, electrical trades and telecommunications occupations
72013	Contractors and supervisors, carpentry trades
72014	Contractors and supervisors, other construction trades, installers, repairers and servicers
72310	Carpenters
72020	Contractors and supervisors, mechanic trades
72021	Contractors and supervisors, heavy equipment operator crews
82010	Supervisors, logging and forestry
82020	Supervisors, mining and quarrying
82021	Contractors and supervisors, oil and gas drilling services
83110	Logging machinery operators
82030	Agricultural service contractors, farm supervisors and specialised livestock workers
92010	Supervisors, mineral and metal processing
92011	Supervisors, petroleum, gas and chemical processing and utilities
92013	Supervisors, plastic and rubber products manufacturing
93100	Central control and process operators, mineral and metal processing
92100	Power engineers and power systems operators
92101	Water and waste treatment plant operators
72100	Machinists and machining and tooling inspectors
72102	Sheet metal workers
72104	Structural metal and platework fabricators and fitters
72105	Ironworkers
72106	Welders and related machine operators
72200	Electricians (except industrial and power system)
72201	Industrial electricians
72202	Power system electricians
72203	Electrical power line and cable workers
72204	Telecommunications line and cable workers
72205	Telecommunications equipment installation and repair workers
72300	Plumbers
72301	Steamfitters, pipefitters and sprinkler system installers
72302	Gas fitters
72400	Construction millwrights and industrial mechanics
72401	Heavy-duty equipment mechanics
72402	Refrigeration and air conditioning mechanics
72403	Railway carmen/women
72404	Aircraft mechanics and aircraft inspectors
72406	Elevator constructors and mechanics
73500	Crane operators
73402	Drillers and blasters – surface mining, quarrying and construction
72501	Water well drillers
83100	Underground production and development miners
83101	Oil and gas well drillers, servicers, testers and related workers
93101	Petroleum, gas and chemical process operators

Wage levels for an LMIA application

The 10-day processing standard for this category applies only to employers hiring temporary foreign workers in the highest-paid occupations; that is, wages in the top 10% compared with the wages of Canadian workers in the province or territory where the work is performed. This wage level indicates that the temporary foreign worker is among the most highly skilled in their occupation and that these skills are very hard to find in the Canadian labour market.

Province/Territory	Median hourly wages in effect from 11 May 2020 (2019 wage figures)
Alberta	$52,20
British Columbia	$45,00
Manitoba	$43,27
New Brunswick	$39,90
Newfoundland and Labrador	$45,00
Northwest Territories	$59,52
Nova Scotia	$40,87
Nunavut	$58,00
Ontario	$48,08
Prince Edward Island	$38,46
Quebec	$44,23
Saskatchewan	$46,15
Yukon	$48,08

Duration of employment for an LMIA application

For this category, the 10-day processing standard applies only to employers requiring a temporary foreign worker for a short period, defined as 120 calendar days or less, in any occupation where the wage offered is at or above the median wage of the province or territory. Positions in this category include work relating to equipment repair or manufacturing and warranty work.

Once a positive Labour Market Impact Assessment (LMIA) is issued, the employer must send a copy to the named foreign worker. This positive LMIA must be included in the worker’s temporary work permit application.

An LMIA may be issued for one or more employees. Where several employees are involved, the LMIA is only issued for those who will fill identical positions under theNational Occupational Classification (NOC)of Canada.

There are certain cases in which an employer may be exempt from the LMIA requirement. Find out more athere.

Express Entry

The 10-day processing standard for this category applies only to employers submitting an LMIA in support of a temporary foreign worker’s permanent residence application under any programme aligned with theExpress Entryof Immigration, Refugees and Citizenship Canada (IRCC).

Foreign workers wishing to immigrate to Canada under an economic programme generally need at least one year of qualifying full-time work experience.

From September 2023, IRCC will roll out theRecognized Employer Pilot (REP). The pilot allows employers that use the Temporary Foreign Worker Program (TFWP) regularly and have a good compliance record to benefit from a simpler LMIA application process, longer LMIA validity and other advantages.

Recruitment advertising requirements

Detailed article onRecruitment advertising requirements for Canadian businesses hiring foreign workers.

Employers wishing to hire a temporary foreign worker in Canada must pay a processing fee of CAD 1,000 for each Labour Market Impact Assessment (LMIA) request.

English and French are the only languages that may be set as a job requirement, both in the LMIA and in recruitment advertising, unless the employer can demonstrate that another language is essential for the position.

In addition, the employer must advertise the position in the Canadian labour market for at least 4 weeks before submitting the LMIA application. The employer must demonstrate that they used at least two other recruitment methods alongside advertising onCanada Job Bank. They must also target their recruitment advertising at under-represented groups of Canadians, such as First Nations people or persons with disabilities.

The employer must also confirm that they are aware of the prohibition on dismissing Canadian workers or reducing their hours where those workers hold the same position as the temporary foreign worker.

The exception for Quebec

This section looks at the exemptions and adjustments to the Labour Market Impact Assessment (LMIA) process that apply specifically to the province of Quebec.

Work permits for holders of a Quebec Selection Certificate (CSQ)

The Quebec Selection Certificate (CSQ)is a document issued by the Government of Quebec to individuals approved to immigrate to the province. CSQ holders may work in Quebec without their employer needing to obtain an LMIA.

The simplified LMIA occupation list

Industries with high labour demand are included on thelist of occupations eligible for an LMIA in Quebec. Quebec employers applying under the simplified LMIA process do not need to provide evidence of recruitment efforts.

Other workers

Foreign workers who do not fall within the two groups above may need to apply for and obtain aQuebec Acceptance Certificate (CAQ)as well as a temporary work permit before starting work in Quebec.