On This Page, You Will Find:
- What a Labour Market Impact Assessment (LMIA) is
- When an LMIA is required
- The LMIA application process, cost and processing times
- The high-wage and low-wage streams
- The latest 2025–2026 rule changes
- LMIA-exempt work permits
- Frequently asked questions
A Labour Market Impact Assessment (LMIA) is a document that a Canadian employer usually needs before hiring most temporary foreign workers. A positive LMIA confirms that there is a genuine need for a foreign worker and that no Canadian citizen or permanent resident is available to do the job. The employer applies to Employment and Social Development Canada (ESDC) through the Temporary Foreign Worker Program (TFWP); once approved, the worker uses the LMIA to apply for a work permit.
When Is an LMIA Required?
An LMIA is required for most positions under the Temporary Foreign Worker Program. Many jobs are LMIA-exempt, however, under the International Mobility Program – for example, intra-company transferees, workers covered by trade agreements such as CUSMA, and holders of open work permits. In short: TFWP positions generally need an LMIA; International Mobility Program positions generally do not.
The LMIA Application Process
Only the employer can apply. The general steps are:
- Determine whether the position is high-wage or low-wage (based on the provincial or territorial median wage).
- Advertise the position and conduct the required recruitment to show that no Canadian is available.
- Submit the LMIA application to ESDC with the processing fee and supporting documents.
- Receive a decision; if positive, provide the LMIA and a copy of the employment contract to the worker.
- The worker then applies for a work permit.
The LMIA processing fee is $1,000 per position requested. This fee cannot be recovered from the worker, and it is generally non-refundable even if the LMIA is refused.
High-Wage and Low-Wage Streams
The stream is determined by whether the wage offered is above or below the median hourly wage for the province or territory:
- High-wage stream – employers must submit a transition plan showing how they will reduce reliance on foreign workers over time. Canada raised the wage threshold that separates high- and low-wage positions in recent updates; see our report on the increased high-wage threshold.
- Low-wage stream – subject to a cap on the proportion of low-wage temporary foreign workers at a work site, plus housing and transportation obligations.
Specialised streams also exist, including the Global Talent Stream (fast processing for in-demand tech talent), the Seasonal Agricultural Worker Program, and streams for primary agriculture and in-home caregivers.
The Latest 2025–2026 Rule Changes
The federal government has tightened the low-wage stream considerably:
- High-unemployment refusal: Since September 26, 2024, ESDC will not process low-wage LMIA applications for jobs in census metropolitan areas with an unemployment rate of 6 per cent or higher (with limited exceptions such as agriculture, health care and construction).
- Low-wage cap: Employers can generally fill no more than 10 per cent of positions at a work site with low-wage temporary foreign workers. From April 1, 2026 to March 31, 2027, eligible employers in rural areas outside census metropolitan areas may use a temporary 15 per cent cap.
- Shorter validity: Low-wage LMIAs generally allow employment for a maximum of one year (primary agriculture is an exception).
- More recruitment: As of April 1, 2026, employers must show efforts to recruit youth (aged 15–30) and use at least two additional recruitment methods appropriate to the occupation.
Note also that, since March 25, 2025, a job offer supported by an LMIA no longer adds points to a candidate’s Express Entry Comprehensive Ranking System score.
Employer Obligations After Hiring
Employers must respect the conditions of the LMIA and the offer of employment, keep records, and may be subject to inspections. Non-compliance can lead to penalties, bans and public listing. Workers, in turn, must generally work only for the employer and in the role specified on their employer-specific work permit.
LMIA-Exempt Options
Because LMIAs have become harder to obtain, many employers and workers look to LMIA-exempt pathways under the International Mobility Program, or to open work permits (for example, spousal open work permits and post-graduation work permits). For a broader view of Canadian work permits, see our step-by-step work permit guide.
Frequently Asked Questions
How much does an LMIA cost?
The LMIA processing fee is CAD $1,000 per position requested. The employer must pay it and cannot recover it from the worker. It is generally non-refundable, even if the application is refused, though some categories (such as certain caregiver situations) may be exempt.
Who applies for an LMIA – the employer or the worker?
The employer applies. Only a Canadian employer can submit an LMIA application to ESDC. Once approved, the employer gives the LMIA and employment contract to the foreign worker, who then applies for a work permit.
Do all foreign workers need an LMIA?
No. Workers hired under the International Mobility Program – such as intra-company transferees, those covered by trade agreements, and open work permit holders – are LMIA-exempt. An LMIA is generally required only for Temporary Foreign Worker Program positions.
Can a low-wage LMIA be refused because of local unemployment?
Yes. Since September 26, 2024, ESDC will not process most low-wage LMIA applications for jobs located in census metropolitan areas where the unemployment rate is 6 per cent or higher, subject to limited sector exceptions.
Does an LMIA still help my Express Entry score?
No. Effective March 25, 2025, IRCC removed the additional Comprehensive Ranking System points previously granted for an arranged job offer, including LMIA-supported offers. An LMIA-based work permit can still help you gain Canadian work experience, which does count toward your profile.