HR glossary · Hiring and contracts

LMIA (Labour Market Impact Assessment)

An LMIA is a federal decision that lets an employer hire a temporary foreign worker after showing no Canadian worker is available.

Also called: Labour Market Impact Assessment, LMO, labour market opinion

What LMIA means

A Labour Market Impact Assessment (LMIA) is a document that Employment and Social Development Canada (ESDC), through Service Canada, issues to an employer that wants to hire a foreign worker through the Temporary Foreign Worker Program. A positive LMIA says there is a need for the foreign worker and that no Canadian worker or permanent resident is available to do the job.

The LMIA is the employer's step. Once you have a positive LMIA, the worker uses it to apply to Immigration, Refugees and Citizenship Canada (IRCC) for a work permit. The work permit usually names your business, the job and the work location.

The program changed a lot from 2024 to 2026, especially for low-wage jobs. Check the current Service Canada pages before you start, because rates and limits are updated during the year.

How it works

The stream depends on the wage. If the wage you offer is at or above the median wage for the province or territory, you apply in the high-wage stream. If it is below, you apply in the low-wage stream. There are other streams too, such as agricultural streams and the Global Talent Stream.

You must try to hire Canadians and permanent residents first. You must advertise on Job Bank, or give a written reason for using another method. For a high-wage job, the ad must run for at least 4 consecutive weeks within the 3 months before you apply, and you need at least 2 more recruitment methods suited to the job. For a low-wage job, the ad must run for at least 8 consecutive weeks within those 3 months, and you must make efforts to reach youth.

The processing fee is $1,000 for each position you ask for. You cannot recover this fee from the worker. No fee is charged if Service Canada refuses to process the application.

Low-wage jobs have extra limits. Since 26 September 2024, Service Canada will not process low-wage LMIA applications for work in a census metropolitan area with an unemployment rate of 6% or more, apart from listed exempt sectors such as primary agriculture, construction, food manufacturing, hospitals, and nursing and residential care. Most employers can have no more than 10% of their workforce at a work location in low-wage temporary foreign worker positions (20% for health care, construction and food processing), and low-wage employment is limited to 1 year. In eligible rural regions, provinces can ask for a temporary 15% cap, in place until 31 March 2027.

After hiring, you must keep the promises in the offer: the wage, the job and the working conditions. Service Canada inspects employers. Penalties can reach $1 million a year, and employers can be banned from the program.

LMIA by province

The LMIA is federal, but where you are matters for low-wage jobs because of the unemployment-rate rule. Rates are updated each quarter.

Where the work is done	The rule
Quebec	Service Canada has a separate page on hiring temporary foreign workers in Quebec, which includes a facilitated process for some jobs. Read it before applying for a Quebec work location.
Nova Scotia	For applications submitted from 9 October 2026 to 7 January 2027, the Halifax census metropolitan area is listed at 6.1%, so low-wage applications there are not processed unless an exemption applies.

Each census metropolitan area's rate is on Service Canada's refusal-to-process page and changes each quarter, so check it on the day you apply.

Example: A seafood plant plans ahead

Luc runs a 40-person seafood processing plant near Yarmouth, Nova Scotia, and has struggled to fill packing jobs. The wage he offers is below the provincial median, so the job falls in the low-wage stream.

He posts the job on Job Bank and runs it for 8 consecutive weeks, invites matched job seekers, and keeps records of every applicant and why each was or was not hired. He checks that food processing falls under the 20% workforce cap, budgets $1,000 for each position, and applies within 3 months of starting the ad.

Job descriptions in Staffkin

An LMIA application asks for the job's duties and requirements. A clear job description, which Staffkin attaches to each job and exports to Word, keeps your ad, application and offer consistent.

See the job description templates

Free tools and guides for this

Questions about LMIA

How much does an LMIA cost?

The processing fee is $1,000 for each position you request. You cannot make the worker pay it back.

How long do I have to advertise before applying for an LMIA?

At least 4 consecutive weeks for a high-wage job and at least 8 consecutive weeks for a low-wage job, within the 3 months before you apply. You must advertise on Job Bank or explain in writing why you used another method.

Can I get a low-wage LMIA in a big city?

Not if the census metropolitan area has an unemployment rate of 6% or more when you apply, unless your sector or job is exempt. The list of rates is updated each quarter.

Who applies for the work permit after the LMIA?

The worker applies to IRCC, using a copy of your positive LMIA and your job offer.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.