What is Labour Market Impact Assessment

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that assesses whether hiring a foreign worker would have a positive, neutral or negative impact on Canada’s labour market. In most cases, Canadian employers must obtain a positive LMIA before hiring a foreign national through the Temporary Foreign Worker Program (TFWP).

The LMIA process generally requires employers to demonstrate that they have made reasonable efforts to recruit Canadian citizens or permanent residents and meet the applicable program requirements. A positive LMIA may allow a foreign worker to apply for an employer-specific work permit, provided they also meet IRCC’s eligibility requirements.

At SMARTVISA, we help clients understand the LMIA process, relevant requirements and next steps toward pursuing employment in Canada.

What Is the Procedure for an LMIA Application?

A Labour Market Impact Assessment (LMIA) application is generally submitted by a Canadian employer that wants to hire a foreign worker. The process varies depending on the job, wage level, industry and applicable program stream.

1. Determine the Appropriate LMIA Stream

The employer identifies the correct program stream based on the position, wage, location and type of work. Different streams have different requirements.

2. Advertise the Job and Recruit Workers

In most cases, the employer must advertise the position and make reasonable efforts to recruit Canadian citizens and permanent residents before hiring a foreign worker. The advertising rules depend on the stream.

3. Prepare the Application and Supporting Documents

The employer gathers documents about the business, job offer, wages, recruitment efforts and other applicable requirements to demonstrate that the position and hiring need are genuine.

4. Submit the LMIA Application

The employer generally submits the application through the Government of Canada’s LMIA Online portal, provides the required documents and pays the applicable processing fee.

5. Wait for the Government’s Decision

ESDC or Service Canada reviews the application and may request additional information. The employer receives a positive or negative LMIA decision.

6. The Foreign Worker Applies for a Work Permit

If the LMIA is positive, the employer provides the relevant documents to the worker. The worker can then apply to IRCC for an employer-specific work permit and must meet the applicable eligibility requirements.