What is an LMIA?

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) — through Service Canada — confirming that a Canadian employer's hiring of a foreign worker will have a positive or neutral effect on the Canadian labour market. In plain terms, the employer has tested the local market and demonstrated that no qualified Canadian or permanent resident was available for the role.

A positive LMIA is the foundation for most work permits under the Temporary Foreign Worker Program (TFWP). Once issued, the foreign worker can apply for a work permit linked to that specific employer, job, and location.

How does the LMIA process work?

1. Employer advertises the position for the minimum prescribed period (typically 4 weeks) across the required platforms (Job Bank + 2 other methods).
2. Employer applies to ESDC with the recruitment file, prevailing-wage analysis, business legitimacy documentation, and proof that the role can't be filled domestically.
3. ESDC reviews the file. Genuine-employer test, wage compliance, advertising compliance, and broader labour-market impact are all scrutinized.
4. Decision issued. If positive, the worker uses the LMIA number to apply for a closed work permit.

High-wage vs. low-wage stream

The LMIA process distinguishes between high-wage (above the provincial median wage for the NOC) and low-wage (at or below median) streams. Low-wage stream LMIAs require additional employer commitments (transportation, housing assistance, healthcare coverage in some cases) and have stricter caps on the number of LMIA workers per workplace.

Why does LMIA matter for PR?

• 50 CRS points for a valid LMIA-supported job offer in TEER 1-3, or 200 points for senior management (NOC 00). Important: this LMIA-tied CRS bonus is separate from the previous "any job offer = 50/200 CRS" rule that IRCC removed in March 2025. LMIA-tied job offers still carry CRS points if the LMIA itself is valid.
• Pathway to PR: LMIA-supported work experience accrued in Canada counts as CEC-eligible work, often leading to Express Entry CEC after 12+ months.
• PNP alignment: Many PNP streams require or favour LMIA-supported employment.

Common gotchas

• Genuine-employer test failure. ESDC verifies the employer's business legitimacy (active operations, T2 returns, payroll, financials). New corporations, shell entities, and businesses without recent operations often fail.
• Advertising non-compliance. The advertising must run for the minimum period across required platforms with the correct content. Missing days or off-platform postings are common refusal grounds.
• Prevailing-wage gaps. The offered wage must meet or exceed the provincial median for the NOC. Even slight gaps cause refusals.
• Recruitment-record gaps. ESDC requires a complete record of all applicants reviewed and reasons for rejection. Generic "lacked experience" rejections without supporting interview notes are flagged.

See also

• LMIA Application service.
• NOC and TEER — used to determine wage and stream.