Labour Market Impact Assessment

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  • Allows you to migrate and work in Canada
  • Get sponsored by an employer in Canada
  • Permits Canadian employer to hire a foreign worker
  • Positive LMIA helps to receive visa within 2 months
  • Can get Canada PR, based on eligibility
Labour Market Impact Assessment (LMIA)

A positive Labour Market Impact Assessment (LMIA) is essential for a Canada-based employer who wants to employ an overseas worker (formerly a Labour Market Opinion – LMO).

An LMIA is a procedure of labor market confirmation that has been intended to protect the local job market of Canada and foreign nationals employed in Canada. LMIA-exempt work permits can be issued only under special circumstances.

Measuring the Advantages of an Lmia Application

A two-step process is necessary to get a Canada work permit. Initially, the Canadian employer needs to submit to an LMIA application to Employment and Social Development Canada (ESDC). It is obligatory for the Canadian employer to submit a detailed list of Canadian citizens who had:

  • Applied for the position,
  • Interviewed for the position, and
  • Detailed reasons why Canadians were not recruited.

While assessing the merits of the applicant, ESDC will consider the following:

  •  Are there any Canadian citizens in the region who are willing to take up the job on offer?
  • Have adequate efforts been taken by the employer to hire a Canadian worker? 
  • Will hiring an overseas employee help in creating or retaining jobs in Canada? 
  • Is the Canadian employer proposing a wage or salary that is on par with the local average for the available position? 
  • Does the work environment comply with Canadian labor standards?
  • Is the employer, or the industry, involved in any labor disputes?

After considering all these points, the ESDC will grant a positive LMIA, if and only if gets convinced that the specific area and industry can sustain overseas workers.

As LMIAs are employer-specific, the position offered and the region in which it will be located would be decided by them. After obtaining a positive LMIA, candidate cannot change their job or employer or relocate to another region in Canada. In any of such cases, you need to get a new LMIA.

There is a clear distinction between “high-wage” and “low-wage” staff. Foreign workers earning on par with or above median wages are labeled high-wage. Foreign workers who earn less than the provincial/territorial medium wages are characterized as low-wage.

Medium Hourly Earnings by Province/Territory


Wage ($/hr)

Newfoundland and Labrador


Prince Edward Island


Nova Scotia


New Brunswick












British Columbia




Northwest Territories




High-Wage Employees

Every Canadian employer who wants to hire a foreign worker(s) at a wage that is on par with or more than the provincial/territorial median hourly pay has to submit a transition plan compulsorily. Transition plans have been implemented to ensure employers expect to cut down their dependence on foreign workers and opt for Canadian citizens instead.

Low-Wage Employees

Canada-based employers intending to employ low-wage workers need not submit a transition plan when they apply for a Labour Market Impact Assessment (LMIA). But unlike high-wage workers, they need to stick to a ceiling that restricts the number of foreign workers earning low wages particular businesses can employ. Employers from Canada who have more than ten employees will be limited to a maximum 10% ceiling on foreign workers whose wages are low. This ceiling will be eased out over the next two years, allowing the country’s employers’ time to embrace a more Canadian workforce.

Processing Times for LMIA  

Processing times of LMIAs vary from two weeks to a few months. ESDC has, however, promised to process a particular number of LMIA applications within ten working days in order to meet the workforce demand in Canada. By putting in place a 10-business-day service standard, the processing of the following categories will now be taken up: 

  • All applications of LMIA for the highest-demand jobs (skilled trades), or
  • Highest-paid (top 10%) careers, or
  • Work periods of short duration (120 days or fewer).

LMIA Fees and Further Requirements of Employers 

A processing fee of CAD 1,000 applies to each LMIA application (barring if the application has been made particularly in support of permanent residency) in addition to the requirement of a Privilege Fee of CAD 100.

Requirements for Canada-based employers

Canada-based employers must advertise for a job (Canada Job Bank) a minimum of four weeks before submitting an LMIA application. Employers additionally need to prove that they have made use of at least two other hiring methods targeting potential employees in addition to the Canada Job Bank website. ESDC will also seek proof that they sought to hire underprivileged Canadians and considered them for the position (e.g., differently-abled people, ethnic or indigenous youth).

English and French should be the only two eligible languages to be listed as employment requirements to apply for LMIA. ESDC officers are unsure of approving an LMIA application if the employer has advertised a language apart from English or French as the decisive factor.

Canadian employers should not fire or lower the working hours of Canadian citizens if their organization hires foreign workers.


Y-Axis is one of the leaders in Canadian immigration and visa consulting services. Our teams have worked on thousands of Canadian visa applications and we have the knowledge and experience to help you throughout the process. Our services include:

  • Y-Axis coaching services will ace your scores of standardised tests based on which your visa applicants will be assessed
  • Evaluating your eligibility to work in Canada, through Canada Immigration Points Calculator.
  • Job search assistance to find a jobs in Canada
  • Complete assistance and guidance while filling the visa application form
  • Free counseling from our Canada immigration experts on how to initiate the process, which jobs you are looking for etc.
  • Free webinars on Canada work, immigration, etc., by our immigration professionals, which helps you to achieve your professional goals easily.
  • Step by step guidance to work in Canada through Y-Path.
  • Assistance with collecting supporting documentation
  • Visa Interview Preparation – if required
  • Updates & follow-up with the Consulate

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