A Labour Market Impact Assessment (LMIA) is an essential authorization that many Canadian employers must secure before hiring a foreign worker. Issued by Employment and Social Development Canada (ESDC), an LMIA confirms that hiring a foreign national is necessary because no qualified Canadian citizen or permanent resident is available for the position.
LMIA for Closed Work Permits
Employers seeking to hire foreign nationals under a Closed Work Permit are generally required to obtain a positive LMIA. This approval demonstrates that employing a foreign worker will not adversely affect the Canadian labour market. Once the LMIA is approved, the foreign worker can proceed with their work permit application using the LMIA and a valid job offer.
Types of LMIA Streams
The LMIA program includes multiple streams based on job type and wage level, such as:
Each stream has specific eligibility criteria, including advertising requirements, prevailing wage standards, and employer compliance obligations.
LMIA Application Process
The LMIA process is detailed and time-sensitive. Employers must prove they have made genuine efforts to recruit locally by advertising the position appropriately. They must also ensure that wages and working conditions meet Canadian labour laws. ESDC carefully assesses each application to determine whether hiring a foreign worker is justified.
Benefits for Foreign Workers
For foreign nationals, a positive LMIA enables them to apply for a Closed Work Permit, allowing them to legally work for the approved employer in Canada. In certain cases, an LMIA can also strengthen eligibility for permanent residence pathways, including programs under the Federal Skilled Worker Program.
