Labour Market Impact Assessment
Definition
A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) confirming that hiring a foreign worker will not harm the Canadian labour market and that no qualified Canadian citizen or permanent resident is available. A positive LMIA lets the worker apply to IRCC for a work permit.
How employers get an LMIA
A Canadian employer applies to ESDC under the Temporary Foreign Worker Program. The employer must usually show genuine recruitment efforts, for example advertising the role, and explain how many Canadians applied and why they were not suitable. ESDC then decides whether hiring a foreign worker will positively or neutrally affect the labour market.
A processing fee applies per position requested (commonly cited as CAD 1,000, which cannot be recovered from the worker, so verify the current figure). A positive LMIA is typically valid for a limited window, often around six months, so agencies coordinating Canadian work permits move quickly once it is issued.
LMIA vs work permit
The LMIA and the work permit are separate steps handled by two different bodies. ESDC issues the LMIA, which is about the labour market. Immigration, Refugees and Citizenship Canada (IRCC) issues the work permit, which is about the individual's admissibility, qualifications, and background checks.
You normally need a positive LMIA first, then the worker uses it to apply for the permit. Not every work permit needs an LMIA: many streams are LMIA-exempt under the International Mobility Program, so confirm which pathway applies before starting.
Because an LMIA has a short validity window and feeds directly into the work permit application, timing is critical. VisaCRM can track the LMIA decision, its expiry, and the linked work permit steps so nothing lapses.
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Frequently asked questions
What is a Labour Market Impact Assessment?
It is a document from Employment and Social Development Canada (ESDC) that assesses whether hiring a foreign worker will affect the Canadian labour market. A positive or neutral LMIA means the employer has shown a genuine need and that no suitable Canadian or permanent resident is available. The worker then uses it to apply to IRCC for a work permit.
Who pays for an LMIA?
The employer pays the LMIA processing fee, and by rule this cost cannot be passed on to or recovered from the foreign worker. There is a fee for each position requested, and it is generally non-refundable even if the application is refused. Because fee amounts change, confirm the current figure on the official Government of Canada guidance.
Do all Canadian work permits need an LMIA?
No. Many work permits are issued under the International Mobility Program, which is LMIA-exempt, often based on trade agreements, intra-company transfers, or broader economic and cultural benefits to Canada. Others do require a positive LMIA first. Which route applies depends on the job and the worker's situation, so verify the correct pathway before applying.
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