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What is an LMIA, and do you actually need one?

September 18, 2024Updated August 31, 20268 min readCanada Immigration Advisory

Most people asking this question have already been told they need an LMIA by someone who was guessing. A large share of foreign workers in Canada never need one at all.

A Labour Market Impact Assessment is a document issued by Employment and Social Development Canada that says hiring a foreign worker for a specific job will not harm the Canadian labour market. A positive assessment lets an employer support a work permit application. The employer applies for it, not the worker.

Who applies, and who it is really about

The assessment is about the job, not the person. ESDC is asking whether this position, at this wage, in this location, can be filled by someone already in Canada. Your qualifications matter only once the position itself has been cleared.

That distinction explains a lot of confusion. A worker cannot apply for an LMIA, cannot buy one, and cannot hold one independently of an employer. If someone offers to sell you an LMIA, that is not a service, and it is a well-known fraud.

Do you actually need one?

Often not. Canada runs two separate streams for temporary workers, and only one of them involves an LMIA at all. The International Mobility Program exists precisely to waive the requirement where there is a broader benefit to Canada.

The two streams for temporary foreign workers
Temporary Foreign Worker ProgramInternational Mobility Program
LMIA requiredYesNo
Who applies firstThe employer, to ESDCUsually the worker, to IRCC
Test appliedWould hiring you displace a Canadian?Does this serve a wider Canadian interest?
Typical routeA specific job no Canadian filledTrade agreements, transfers, study and spousal ties
Employer burdenHigh: advertising, recruitment records, wage evidenceLower, but compliance obligations still apply
The two streams for temporary foreign workers

Common situations where no LMIA is needed

  • You are being transferred within your existing company to a Canadian branch.
  • You qualify under a free trade agreement, such as the Canada-United States-Mexico Agreement, in a listed profession.
  • You graduated from an eligible Canadian institution and qualify for a post-graduation work permit.
  • Your spouse holds a qualifying study or work permit and you are eligible for an open work permit.
  • You are coming through a youth mobility arrangement such as International Experience Canada.
  • Your work is judged to bring significant benefit to Canada, which is a narrow and evidence-heavy category.

Each of these has its own eligibility rules and its own evidence burden. Being broadly in one of these situations is not the same as qualifying, which is the single most common reason a confident applicant is refused.

What the employer has to prove

Where an LMIA genuinely is required, the burden sits almost entirely with the employer. They must show they tried to hire domestically, advertised the role properly, offered a wage consistent with the occupation and region, and can support the position financially.

Applications are split into streams by wage relative to the median for the province or territory, and the obligations differ between them. Those thresholds are republished by ESDC and move, so they should be read at the source rather than taken from any consultancy page, including this one.

How long the whole thing takes

Longer than people expect, because it is two processes in sequence. The employer must complete recruitment before applying, ESDC then assesses, and only after a positive result does the worker apply for the permit itself. Published processing times cover only the middle step.

The practical planning number is not the processing time. It is the recruitment period, plus assessment, plus the permit application, plus whatever biometrics and medicals your nationality and occupation require.

The questions worth asking before you start

  • Is there an LMIA-exempt route that fits this person, and what evidence would it need?
  • Does the job description reflect the role honestly, or has it been written around one candidate?
  • Is the offered wage defensible against the published figure for that occupation and region?
  • Can the employer produce recruitment records if asked for them a year from now?
  • Who is responsible for compliance after the worker arrives?

The last one gets overlooked. An employer's obligations do not end when the permit is issued, and inspections happen. Getting the assessment is the beginning of the relationship, not the end of the paperwork.

Where people go wrong

The expensive mistake is starting the LMIA process at all when an exemption applied. The second is treating recruitment as a formality to be documented after the fact. Both are avoidable, and both are much cheaper to avoid than to argue about after a refusal.

Want this applied to your own case?

General guidance only. Your circumstances decide what actually applies, and the first conversation is free.

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