Labour Market Impact Assessment (LMIA)

What is an LMIA?

A Labour Market Impact Assessment is a document issued by Employment and Social Development Canada (ESDC) / Service Canada that an employer must obtain before hiring a foreign national under the Temporary Foreign Worker Program (TFWP). A positive LMIA confirms that no Canadian citizen or permanent resident was available for the job, and that hiring the foreign worker will not negatively affect the Canadian labour market. Each LMIA is specific to one employer, one position, and one location. Some work permits are LMIA-exempt under Canada's International Mobility Program — eligibility must be verified case by case.

LMIA streams under the Temporary Foreign Worker Program

The TFWP has seven distinct LMIA streams, each with different rules, wage thresholds, advertising requirements, and application procedures. Choosing the wrong stream — or misclassifying a wage — can result in refusal or compliance issues.

1. High-Wage Stream

For positions where the offered wage is at or above the median hourly wage for the province or territory of work. Median hourly wages are published by ESDC and updated periodically—always use the current wage table for your province or territory when classifying a position. Employers under the high-wage stream must submit a Transition Plan outlining how they will reduce reliance on temporary foreign workers over time — this could include training Canadian employees, increasing wages, or other strategies. Failure to implement the transition plan can affect future LMIA applications.

• Advertising requirement Employers must advertise the position for a minimum period using ESDC-specified platforms and methods. Canadians and PRs who applied must be screened, and reasons for non-selection must be documented.
• Transition plan A written plan to hire or train Canadians for the role over time — reviewed during any future LMIA inspections.
• No cap on proportion Unlike the low-wage stream, there is no percentage cap on how many high-wage TFWPs an employer can have relative to their Canadian workforce.

2. Low-Wage Stream

For positions where the offered wage is below the provincial or territorial median hourly wage. This stream carries additional employer obligations and worker protections because ESDC recognizes the higher vulnerability of lower-wage temporary foreign workers.

• Workforce cap Employers in most sectors are limited to a maximum of 10% (or 20% for seasonal businesses) of their total workforce being low-wage TFW Program workers. Certain sectors have had cap restrictions imposed or tightened since 2023.
• Employer-paid transportation Employers must pay for round-trip transportation from the worker's country of residence to the Canadian worksite.
• Affordable housing Employers must ensure affordable housing is available and accessible near the worksite, or provide it directly.
• Provincial workplace safety insurance Workers must be enrolled in the applicable provincial/territorial workplace health and safety insurance plan from their first day of employment.
• Private health insurance Employers must provide private health insurance that covers the worker during any waiting period before provincial health coverage begins.

3. Global Talent Stream (GTS)

The Global Talent Stream is an expedited LMIA track within the TFWP for employers who need to hire highly skilled workers quickly, particularly in the technology and STEM sectors. It is intended to help Canadian companies compete globally for specialized talent.

• Category A The employer is referred by a designated partner organization (e.g., a recognized sector association, accelerator, or economic development body) for a position requiring a unique and specialized talent not readily found in Canada.
• Category B The position is on the Global Talent Occupations List — a list maintained by ESDC of in-demand tech and STEM roles that are consistently hard to fill with Canadian workers. No partner referral is required.
• Benefit to Canadians requirement Employers using the GTS must demonstrate that hiring the foreign national benefits Canadian workers — typically by committing to creating new jobs or providing training to Canadians at the same time.
• Wage floor GTS positions must meet or exceed a wage floor published by ESDC for the specific occupation, which tends to be above typical market median wages.

4. Seasonal Agricultural Worker Program (SAWP)

The SAWP is a bilateral program between Canada and specific countries — Mexico and participating Caribbean nations (including Jamaica, Trinidad and Tobago, Barbados, and others) — that allows agricultural employers to hire seasonal workers for temporary periods. SAWP workers may stay in Canada for up to 8 months per calendar year. The program covers a wide range of on-farm agricultural activities.

• Participating countries only Workers must be citizens of Mexico or one of the designated Caribbean participating countries. Workers from other countries cannot access SAWP (they may apply under the Agricultural Stream instead).
• Agricultural work only Positions must be in primary agriculture (e.g., planting, harvesting, livestock handling). Processing, packaging, and non-farm activities generally do not qualify for SAWP.
• Employer-provided housing Employers must provide free or affordable housing, and the accommodation must meet provincial standards. Housing inspections may be conducted.
• No application fee The SAWP LMIA application fee is waived — there is no $1,000 charge for SAWP positions, unlike other TFWP streams.

5. Agricultural Stream

The Agricultural Stream LMIA covers primary agricultural positions not eligible under the SAWP — primarily because the worker is not from a SAWP-participating country, or because the position falls outside SAWP scope. It covers a broader range of agricultural occupations and a wider set of nationalities.

• All nationalities eligible Unlike SAWP, the Agricultural Stream is open to workers from any country. It is the pathway for agricultural hires that cannot use SAWP.
• Covers a wider range of agriculture roles Includes primary agriculture positions in crop production, livestock operations, greenhouses, nurseries, and related activities. Some secondary agri-food processing roles may also qualify.
• No application fee Like SAWP, the Agricultural Stream LMIA does not require the standard $1,000 application fee.
• Employer-paid transportation and housing Comparable obligations to the SAWP: employers must cover travel costs and provide or arrange housing meeting provincial standards.

6. In-Home Caregiver Stream

Employers who need to hire a live-in or live-out caregiver for children, seniors, or persons with medical needs may require an LMIA under the caregiver stream. Canada's caregiver programs have undergone significant changes — the Home Child Care Provider Pilot and Home Support Worker Pilot now provide pathways to permanent residence, but these pilots have had limited intake and intake pauses. For employers who cannot access those pilots or whose workers do not qualify, an LMIA-based work permit under the caregiver stream may be the applicable route.

• For private household employers The employer is typically a private family or individual, not a business. The application process and documentation requirements reflect this personal employment relationship.
• Required qualifications Caregivers must have a minimum educational level (typically equivalent to a Canadian high school diploma), a combination of education and experience, and in many cases a first aid certificate.
• Language proficiency The caregiver must demonstrate English or French language proficiency sufficient to perform the caregiving duties safely.
• Work permit conditions The caregiver's work permit ties them to the specific employer and home address named in the LMIA. Changes to living arrangements or employer require a new permit or LMIA.

7. Skilled LMIA, work permits, and Express Entry (CRS job-offer update)

Important: As of March 25, 2025, IRCC no longer awards CRS points for a valid job offer in the Express Entry pool (including arrangements that previously added 50 CRS points for most skilled offers or 200 points for NOC 2021 Major Group 00 senior-management offers). This is confirmed on the Government of Canada page Express Entry: Job offer. An LMIA for a skilled role remains strategically important for obtaining an employer-specific work permit and for building Canadian work experience that can increase CRS through other factors (for example, under the Canadian Experience Class after eligibility is met).

• Job offers can still matter for program eligibility Depending on which Express Entry–managed program you qualify under, a valid job offer may still be required (for example, part of the Federal Skilled Trades Program pathway) or may factor into the Federal Skilled Worker Program selection grid. You should still enter and update job-offer details in your Express Entry profile when IRCC’s instructions require it.
• Genuine job offer required IRCC assesses whether the job offer is real, continuous, and intended for the specific candidate. Offers arranged primarily for immigration advantage without genuine employment intent carry serious misrepresentation risk.
• LMIA “for CRS” is obsolete Seeking an LMIA mainly to raise CRS through a job offer is no longer effective for that purpose. LMIA strategy should focus on lawful work authorization, employer compliance, and how Canadian experience or provincial pathways fit your long-term plan.
• Physicians — check current public policy IRCC has published time-limited measures for certain foreign-national physicians with eligible publicly funded job offers; CRS treatment in those narrow cases is described on Canada.ca and can differ from the general rule above.

LMIA-exempt categories: when you don't need an LMIA

Many workers come to Canada under the International Mobility Program (IMP), which is entirely separate from the TFWP and does not require an LMIA. Common LMIA-exempt categories include:

• International trade agreements (CUSMA/USMCA, CETA, CPTPP, and others) Citizens of treaty countries in qualifying professional or business categories can be sponsored by a Canadian employer without an LMIA.
• Intra-company transfers Workers transferring within a multinational organization to a Canadian affiliate, subsidiary, or parent in executive, senior managerial, or specialized knowledge roles.
• Significant benefit to Canada Roles that create or maintain Canadian jobs, transfer knowledge to Canadians, or otherwise provide a broader benefit to Canada may be LMIA-exempt under a significant benefit determination.
• International Experience Canada (IEC) Youth from participating countries on IEC working holiday or young professional visas do not require an LMIA.
• Reciprocal employment arrangements Positions that are part of formal reciprocal employment arrangements between Canada and other countries.

Confirming whether a role falls under the TFWP (LMIA required) or IMP (LMIA-exempt) is the critical first step for any employer hiring internationally.

What Service Canada assesses in every LMIA

• Recruitment efforts Evidence that the employer actively advertised the position using ESDC-approved platforms for the required period, genuinely considered Canadian applicants, and documented reasons for non-selection with specifics.
• Wages offered Must meet or exceed the prevailing wage for the occupation and region as published by ESDC. Under-market wages are among the most common reasons for LMIA refusals.
• Working conditions Job duties, hours, and workplace conditions must meet applicable provincial or territorial employment standards and must match the job advertisement.
• Business legitimacy The employer must be a genuine, operating business with a valid CRA business number, GST/HST registration if applicable, and demonstrated capacity to employ and pay the worker.
• Transition plan (high-wage stream only) A credible written strategy showing how the employer will reduce dependence on temporary foreign workers over time.
• Employer compliance history Employers with previous TFWP compliance violations, failed inspections, or bans may face additional scrutiny or automatic ineligibility.

After a positive LMIA: the work permit

A positive LMIA gives the foreign worker the right to apply for an employer-specific work permit. The permit application to IRCC must reference the LMIA number and match the position, wage, employer, and location exactly as stated in the LMIA. The worker cannot work until the permit is issued. Work permit conditions — employer, job title, work location, and permit expiry — must be strictly respected throughout employment.

TFWP inspections and employer compliance

Service Canada conducts random and complaint-driven TFWP inspections of employers who have hired temporary foreign workers under the program. Inspections verify that:

• Wages and working conditions match what was committed to in the LMIA application
• Transition plans (high-wage stream) are being implemented
• Employer obligations for low-wage workers (housing, transport, insurance) are being met
• Workplace safety standards are being followed

Non-compliance can result in financial penalties, a ban from the TFWP, and public disclosure on the Government of Canada's non-compliant employer list. Maintaining thorough employment records is essential.

Typical LMIA application process

1. 1
   Confirm stream and determine LMIA requirement Identify the correct TFWP stream for the position, confirm the wage meets the stream's threshold, and verify that the IMP does not apply (making LMIA unnecessary).
2. 2
   Conduct required recruitment Post the job on ESDC-approved platforms for the required minimum period. Keep records of all applicants, interviews, and reasons for non-selection. Advertising must be genuine — applications cannot be screened out without review.
3. 3
   Assemble and submit the LMIA application Complete all ESDC forms, attach recruitment records, job offer letter, business legitimacy documents, and transition plan (if high-wage). Pay the $1,000 application fee (waived for agricultural and SAWP streams).
4. 4
   Service Canada review and decision Service Canada may contact the employer for additional information. A positive, negative, or neutral LMIA is issued. Processing times vary by stream — Global Talent Stream has expedited processing; regular streams vary.
5. 5
   Worker applies for employer-specific work permit The worker submits a work permit application to IRCC using the LMIA number, job offer, and supporting documents. The permit conditions must exactly mirror the LMIA.
6. 6
   Worker arrives and employment begins The employer maintains records as required for potential TFWP inspection. Workers may use this Canadian experience to build toward Express Entry or PNP permanent residence pathways.

Documents typically needed from the employer

• Business registration and proof of operation (CRA business number, financial statements or payroll records)
• Job offer letter: detailed position title, NOC code, duties, wages, hours, location, and employment start date
• Recruitment records: job posting copies with dates, platforms used, résumés of Canadian applicants, interview notes, and documented reasons for non-selection
• Transition plan (high-wage stream): written strategy for reducing TFW reliance
• Wage evidence: pay rate documentation confirming wage meets or exceeds ESDC's prevailing wage for the region and occupation
• Completed ESDC application forms
• For agricultural/caregiver streams: additional stream-specific documentation

LMIA stream requirements, wage thresholds, advertising rules, application fees, and inspection standards are set by Employment and Social Development Canada (ESDC) and IRCC and are subject to change. This page is general information only and does not constitute legal advice or guarantee a positive LMIA outcome. Verify all current requirements on the official Government of Canada website before filing.