A Labour Market Impact Assessment (LMIA) is an essential step for Canadian employers seeking to hire foreign workers. The LMIA ensures that hiring a foreign worker will not negatively impact the Canadian labor market and that no qualified Canadian citizens or permanent residents are available for the job.
What is a Labour Market Impact Assessment (LMIA)?
An LMIA is a document issued by Employment and Social Development Canada (ESDC) to employers who prove the need to hire a foreign worker. It ensures:
No qualified Canadian worker is available for the position.
Hiring the foreign worker will benefit the Canadian labor market.
A positive LMIA, also known as a confirmation letter, allows the employer to proceed with hiring and enables the foreign worker to apply for a work permit.
Types of LMIA
Type | Description |
High-Wage Positions | For jobs with wages at or above the provincial/territorial median hourly wage. |
Low-Wage Positions | For jobs with wages below the provincial/territorial median hourly wage. |
Seasonal Agricultural Worker Program (SAWP) | Designed for hiring temporary agricultural workers for seasonal roles. |
Global Talent Stream (GTS) | Accelerated process for hiring specialized talent in technology and innovation fields. |
Permanent Residence LMIA | Supports foreign workers transitioning to permanent residency in Canada. |
Steps to Apply for an LMIA
Determine LMIA Requirements:
Check if the job requires an LMIA or qualifies for an exemption under international agreements or Canadian interests.
Classify the Position:
High-Wage or Low-Wage, based on the median wage in your region.
Advertise the Job:
Post the job on the Canada Job Bank and at least two other recruitment platforms for a minimum of 4 weeks.
Focus recruitment efforts on underrepresented groups such as Indigenous people and individuals with disabilities.
Prepare Documentation:
Job offer details (wages, duties, and duration).
Recruitment efforts and outcomes.
Submit the LMIA Application:
Include the required fee (CAD 1,000 per position) and supporting documents to Service Canada.
Await Processing:
Processing times vary, typically ranging from 2-3 months.
Common Challenges in the LMIA Process
Challenge | Description |
Complex Application Process | Detailed and multifaceted, requiring accurate documentation and compliance. |
Proving No Suitable Canadian Worker | Employers must demonstrate extensive efforts to hire locally. |
High Costs | Application fees and advertising expenses can be a financial burden. |
Risk of Refusal | Incomplete or non-compliant applications risk being denied. |
LMIA Exemptions
Certain job categories are exempt from LMIA requirements under the International Mobility Program (IMP) or international agreements like:
Canada-United States-Mexico Agreement (CUSMA)
General Agreement on Trade in Services (GATS)
Francophone Mobility Program
How Does an LMIA Impact Permanent Residency (PR) Applications?
A positive LMIA can significantly enhance a foreign worker’s Comprehensive Ranking System (CRS) score when applying for Permanent Residency (PR) through the Express Entry System. Here’s how:
Job Offer Type | CRS Points Awarded |
NOC TEER 0 or TEER 1 Positions | 200 Points |
NOC TEER 2 or TEER 3 Positions | 50 Points |
These points are added to the applicant’s CRS score, increasing their chances of receiving an Invitation to Apply (ITA) for PR.
Key Considerations:
Validity of the Job Offer: The job offer must be for a full-time, non-seasonal position and valid for at least one year after PR issuance.
LMIA Requirements for PR: Only job offers supported by a positive LMIA are eligible for these additional CRS points.
Transition to Permanent Residency: Employers may need to provide additional support, such as extending the LMIA validity or issuing a new one, if required during the PR process.
Impact of LMIA on Permanent Residency (PR) Applications: Recent Changes
Previously, a positive LMIA could significantly enhance a foreign worker’s Comprehensive Ranking System (CRS) score when applying for Permanent Residency (PR) through the Express Entry System.
Candidates with valid job offers could receive an additional 50 or 200 CRS points, depending on the position's skill level. These additional points often made the difference between receiving an Invitation to Apply (ITA) for PR or not.
Upcoming Change: In December 2024, Immigration, Refugees and Citizenship Canada (IRCC) announced plans to remove these additional CRS points for job offers under the Express Entry system, effective spring 2025.
Key Details:
Implementation Timeline: The removal of CRS points for job offers is set to begin in spring 2025.
Scope of Impact: This change will apply to all new and existing candidates in the Express Entry pool at the time of implementation, including those already working in Canada temporarily.
Temporary Measure: IRCC has indicated that this is a temporary measure but has not specified an end date.
Implications for Applicants:
CRS Score Adjustments: Candidates relying on job offers to boost their CRS scores will need to reassess their profiles, as the removal of these additional points may lower their overall scores.
Alternative Strategies: Applicants should focus on other factors to enhance their CRS scores, such as improving language proficiency, obtaining higher education credentials, gaining additional work experience, or securing a provincial nomination, which still offers 600 additional CRS points.
Which Candidates Can Still Avail CRS Points for LMIAs?
As of spring 2025, the Immigration, Refugees and Citizenship Canada (IRCC) will remove CRS points for LMIA-backed job offers for most Express Entry candidates. However, certain candidates will still be eligible to receive these points based on specific criteria:
Provincial Nominee Program (PNP):
Candidates with a provincial nomination who have an LMIA-supported job offer may still qualify for enhanced points through their province.
Provincial programs focusing on critical labor shortages may prioritize LMIA-backed offers.
Francophone Mobility Stream Applicants:
Francophone workers outside Quebec with LMIA-backed offers can receive points under the Francophone Mobility Program, which remains unaffected by the recent changes.
Sector-Specific Priority Occupations:
Certain high-demand jobs in healthcare, technology, and skilled trades may be given exceptions based on labor market needs identified by IRCC or provinces.
Rural and Northern Immigration Programs:
Job offers in rural and smaller communities under regional programs might still attract CRS points to encourage economic growth in these areas.
Temporary Foreign Workers with Long-Term Contracts:
Workers already in Canada on an LMIA-based work permit with multi-year contracts may have pathways to additional points through transitional programs.
Key Considerations for Candidates:
Candidates who no longer receive CRS points for LMIA-based job offers should focus on improving other factors in their CRS profile, such as language proficiency, educational credentials, or work experience.
Securing a provincial nomination remains one of the most impactful ways to boost CRS scores by 600 points.
Common Challenges in the LMIA Process
Challenge | Description |
Complex Application Process | Detailed and multifaceted, requiring accurate documentation and compliance. |
Proving No Suitable Canadian Worker | Employers must demonstrate extensive efforts to hire locally. |
High Costs | Application fees and advertising expenses can be a financial burden. |
Risk of Refusal | Incomplete or non-compliant applications risk being denied. |
FAQs About LMIA and Express Entry
1. What is the cost of applying for an LMIA?
The application fee is CAD 1,000 per position. Certain streams, like the Seasonal Agricultural Worker Program (SAWP), have reduced fees.
2. How long is an LMIA valid?
An LMIA is typically valid for 6 months from the date of issue. Employers and workers must act within this timeframe.
3. Can an LMIA be appealed if denied?
There is no formal appeal process, but employers can:
Address the reasons for refusal.
Submit a new application.
4. How does the removal of CRS points for job offers affect PR applications?
Starting in spring 2025, candidates will no longer receive additional CRS points for LMIA-based job offers. Applicants should focus on improving other CRS factors, such as language skills or obtaining a provincial nomination.
5. Are there expedited LMIA processes?
Yes, certain streams like the Global Talent Stream (GTS) have expedited processing times, typically within 2 weeks.
Contact Us for Assistance
If you need help navigating the LMIA process or understanding how the upcoming changes to the Express Entry system may affect your PR application, our team of experts is here to assist you. Book a consultation today!