LMIA, or Labour Market Impact Assessment, is a crucial evaluation document issued by Employment and Social Development Canada (ESDC) to analyze the ramifications of hiring foreign nationals in Canada. A positive LMIA signifies a scarcity of available Canadian citizens or permanent residents for a given position, thus granting employers the ability to recruit foreign nationals. Conversely, a negative LMIA suggests that the position should ideally be filled by a Canadian citizen or permanent resident.
Foreign nationals cannot initiate an LMIA application themselves. Instead, LMIAs must be applied for by Canadian employers. While there are instances where hiring a foreign worker exempt from needing an LMIA or a work permit is possible, all streams of Canada's Temporary Foreign Worker Program (TFWP) necessitate employers to obtain an LMIA for hiring outside Canada. Moreover, many pathways to Canadian permanent residency require applicants to present a positive LMIA to claim points for a Canadian job offer.
Employers can initiate an LMIA application as early as six months before the intended start date for the position. Application procedures vary depending on the wage level of the position, categorized as high-wage or low-wage. Employers should reference the median hourly wages of their province or territory to determine the classification of their position. Specialized streams exist for employers seeking LMIAs for specific areas of employment, including hiring in-home caregivers, agricultural workers, foreign academics, and within the province of Quebec.
LMIA applications are submitted in hard copy, by mail, to the appropriate Service Canada Processing Centre. Applications must include evidence that specific criteria have been met:
Employers applying for LMIA for low-wage positions must also address three additional requirements:
Upon approval of an LMIA application, employers receive a definitive decision. A positive LMIA grants them the authority to proceed with hiring a foreign national, while a negative LMIA unfortunately signifies disapproval for such hiring.
Positive LMIA determinations remain valid for six months from the date of issuance. Subsequently, upon receiving a positive LMIA, employers are obligated to promptly inform the foreign national so they can initiate the process of applying for their work permit or permanent residence.
Under specific circumstances, employers may request expedited processing of their LMIA application, which can be completed within 10 days. To qualify for expedited processing, the employer must be situated outside of Quebec and meet one of the following criteria:
Employers must adhere to specific guidelines regarding median hourly wages when hiring Temporary Foreign Workers (TFWs). If the TFW is to be compensated at or above the median hourly wage for their respective province or territory, the employer must utilize the high-wage workers stream for LMIA processing. Conversely, if the TFW is to be paid below the median hourly wage, the low-wage workers stream is applicable.
| Province/Territory | Wages before May 31, 2023 | Wages as of May 31, 2023 |
| Alberta | $28.85 | $28.85 |
| British Columbia | $26.44 | $27.50 |
| Manitoba | $23.00 | $23.94 |
| New Brunswick | $21.79 | $23.00 |
| Newfoundland and Labrador | $24.29 | $25.00 |
| Northwest Territories | $37.30 | $38.00 |
| Nova Scotia | $22.00 | $22.97 |
| Nunavut | $36.00 | $35.90 |
| Ontario | $26.06 | $27.00 |
| Prince Edward Island | $21.63 | $22.50 |
| Quebec | $25.00 | $26.00 |
| Saskatchewan | $25.96 | $26.22 |
| Yukon | $32.00 | $35.00 |
This table displays the median hourly wages by province or territory, both before and as of May 31, 2023.
In certain circumstances, employers may be exempted from the obligation to obtain an LMIA when hiring a foreign worker. These exemptions are typically managed through the International Mobility Program, a framework designed to facilitate the entry of foreign workers into Canada for specific purposes. Under this program, certain categories of foreign workers may be eligible for LMIA exemptions based on the nature of their employment or the agreements between Canada and other countries.
These exemptions provide flexibility for employers and streamline the hiring process for specific types of employment situations. They recognize that certain individuals may contribute to Canada’s economy, cultural enrichment, or other areas of national interest without necessitating an LMIA.
Furthermore, exemptions from requiring a work permit may also apply in certain cases. Work permits are typically required for foreign nationals to legally work in Canada, but there are exceptions based on factors such as the type of work being performed, the duration of stay, or specific international agreements.
The province of Quebec has considerable autonomy over its immigration policies and processes, which includes its approach to hiring foreign workers. As a result, Quebec has established distinct procedures regarding the recruitment of foreign workers. One notable aspect is the facilitated LMIA process, which enables employers in Quebec to apply for LMIAs without the requirement to demonstrate efforts to recruit Canadian citizens or permanent residents for the position.
This facilitated LMIA process acknowledges the unique labor market dynamics and needs of Quebec, allowing employers in the province to more efficiently access foreign talent when necessary. By removing the obligation to prove recruitment efforts for local candidates, the process streamlines the hiring process for both employers and foreign workers seeking employment opportunities in Quebec.
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