Labour Market Impact Assessment (LMIA)
Hiring foreign talent is more than just a business decision - from the government’s perspective, it’s a way to bridge skill gaps and grow industries in Canada.
While the process is lengthy, it’s built to maintain a fair and balanced labour market, ensuring that hiring foreign workers doesn’t undercut opportunities for Canadians.
The LMIA is essentially a test. Employers must prove that they’ve tried their best to fill positions locally with Canadian citizens or permanent residents, before turning to foreign workers. It’s a balancing act between welcoming global talent while safeguarding local job opportunities.
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Understanding the LMIA Streams
The LMIA isn’t a one-size-fits-all process. Depending on the wage level, industry, and type of position, there are different streams employers can use. These streams are designed to address specific labour market needs:
Low-Wage Positions
For jobs paying below the median provincial or territorial wage, the government sets stricter rules to prevent exploitation and wage suppression. There are also specific recruitment guidelines, whereby employers must target their job searching efforts to underrepresented groups. Also, as of Fall 2024, there is a prohibition on processing low-wage LMIA’s for work locations in metropolitan regions with an unemployment rate of 6% or higher with certain professions being exempt (for example, childcare providers, construction workers, hospital workers, etc.,).There’s also a cap on how many low-wage foreign workers a company can hire and there is a maximum work permit duration of one-year.
High-Wage Positions
Jobs offering wages at or above the provincial or territorial median come with unique advantages under the High-Wage LMIA stream. Unlike other programs, these positions are not subject to specific foreign worker caps or recruitment restrictions. Employers can secure LMIA approvals for up to three years, tailored to their operational needs. To qualify, employers must include a detailed transition plan in their application, demonstrating their commitment to reducing reliance on the LMIA program by investing in Canadian talent and fostering long-term workforce development. This program provides an excellent opportunity for employers to fill critical roles while contributing to the growth of the Canadian labor market.
Global Talent Stream (GTS)
The GTS LMIA is a fast-track work permit option designed to help Canadian employers hire highly skilled foreign talent quickly to fill labor shortages in in-demand occupations. To qualify, employers must meet specific requirements, including demonstrating a genuine need for the position, providing a competitive salary aligned with industry standards, and committing to developing a Labour Market Benefits Plan (LMBP) outlining how hiring foreign workers will benefit the Canadian labor market (e.g., through job creation or knowledge transfer). The GTS is primarily available to employers hiring for positions on the Global Talent Occupations List or those referred by a designated partner organization supporting innovation and economic growth in Canada. The huge appeal of the GTS LMIA is that Canadian employers do not need to post job ads for 4 weeks, and there is a 15 day turnaround time. It is ideal for highly skilled workers such as software engineers, IT specialists, and other professionals in STEM fields.
Agricultural Workers
For farms and agribusinesses facing seasonal or year-round labour shortages, the LMIA process includes two key streams: the Agricultural Stream for continuous work and the Seasonal Agricultural Worker Program (SAWP) for shorter roles. The SAWP is limited to workers from specific countries with which Canada has agreements.
The LMIA Recruitment Process
Before you apply, you need to show that hiring locally wasn’t an option. This means advertising the position for at least 28 consecutive days on a minimum of three platforms, including one national job board.
Your job posting must meet strict standards, offering at least the regional median wage and listing specific duties.
A proper recruitment process isn’t just about posting an ad. Employers need to show they reviewed Canadian applicants and provide reasons for not hiring them. This paperwork is crucial because it proves you’ve made every effort to fill the position locally.
Preparing the LMIA Application
Once recruitment is complete, it’s time to put together the LMIA application.
This includes:
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A clear job description.
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Proof of recruitment efforts, including where the job was advertised and how long.
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Details of the wage offer, ensuring it meets government standards.
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A solid explanation of why hiring a foreign worker is essential.
Applications are submitted to Employment and Social Development Canada (ESDC) through the online LMIA portal. If the employer can demonstrate that, even with recruitment efforts, they were not able to locate or hire any qualified Canadian workers, then ESDC will issue a positive LMIA. This approval allows the foreign worker to apply for their work permit.
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