What is Labour Market Impact Assessment
The goal of the LMIA process is to determine what effect the hiring of your foreign workers would have on the Canadian labour market.
Employment and Social Development Canada (ESDC) administers the LMIA process and seeks to ensure that employers do not choose foreign candidates over qualified Canadians and permanent residents. There are three possible results of the LMIA assessment: positive, neutral, or negative. Providing that the outcome is a ‘positive’ or ‘neutral’ effect on the labour market, the employer may proceed and offer a job to a foreign national.
What Does the Employer Require to Do
Government officers review an LMIA application to verify whether the employer made sufficient efforts to find workers among Canadians and permanent residents.
Employers will need to supply evidence of such efforts (e.g. ads, recruitment summary). Our Professional Team has HR Consultant on board to help employers with this process.
In essence, employers will be permitted to hire foreign workers only if no Canadians or permanent residents are found to fill some or all of the vacant positions. Finally, officers verify that the foreign worker will receive the pay and work conditions that meet the provincial and federal standards.
There are different types LMIA’s depending on the employer’s needs.
LMIA for a caregiver
This application is submitted by Canadian citizens or permanent residents who wish to hire a caregiver
Low Wage LMIA
This application is used when the wage being offered is below the provincial median rate.
High Wage LMIA
This application is used when the wage being offered is equal to or above the provincial median rate.
LMIA to support permanent residency
This application is used when the employer wishes to support the applicant in becoming a permanent resident. There is also an option to apply for an LMIA to support a work permit while the worker waits to become a permanent resident.
This application is used when an individual wishes to be self-employed and will improve the Canadian economy and may also create or maintain Canadian jobs.
Although the required recruitment time is 28 days before an employer can submit an LMIA, depending on the occupation or type of LMIA, the minimum recruitment requirements will differ.
Main Steps in the LMIA Process
Most employers decide to hire FW after months and often years of difficulties filling and retaining crucial positions within a company. Hence, the decision to apply for an LMIA must have a good and detailed explanation. In fact, the government encourages employers to use LMIAs as the last resort option. If you, as an employer, feel that this process is the only solution to your hiring needs, you have taken the first step towards a successful LMIA.
LMIA applications should show the following:
Efforts made to recruit available Canadian citizens/permanent residents
Wages offered for the position are consistent with the prevailing wage rate paid to Canadians/permanent residents in the same occupation in the region
Working conditions for the occupation meets the current provincial labour market standards
Any potential benefits that hiring a foreign worker might bring to the Canadian labour market, such as the creation of new jobs or the transfer of skills and knowledge
Transition plans will be required for high-wage positions whereby employers must demonstrate increased efforts to hire Canadians in the long-term.
LMIA Advertisement Process
It is crucial to follow the LMIA instructions for the Job Advertisement Information because application are refused for missing or inaccurate ad content.
At the same time, employers should select their recruitment activities to meet the LMIA requirements for the stream. In most cases, an ad must be placed on jobbank.gc.ca. In addition, several other advertising methods are required.
Employers need to make sure that the selected methods are relevant to the occupation advertised and that they reach the prescribed audience.
It is advisable, to go above the prescribed minimum in the advertising campaign to demonstrate genuine efforts.
Job Match service with Jobbank
Effective August 28, 2017, you must use the Job Match service for recruitment purposes when advertising a position on Job Bank.
The Job Match service allows you to see anonymous profiles of registered job seekers that correspond to the skills and requirements outlined in your job posting. Each match is rated using a star system of 1 to 5 stars. The more stars received by the match, the greater the compatibility between your advertised position and the anonymous job seeker.
When creating your job posting, you must select the ‘’default’’ option. This option allows matches with job seekers from a wide variety of background as opposed to the ‘’strict’’ matching mode, where matches may be limited to fewer job seekers.
When seeking to fill a high-wage position, you are required to invite all job seekers matched within the first 30 days of your job advertisement to apply for the position if they are rated 4 stars or more.
When seeking to fill a low-wage position, you are required to invite all job seekers matched within the first 30 days of your job advertisement to apply for the position if they are rated two stars or more.
Job advertisement information
The required job advertisement information includes:
company operating name
title of the position
job duties (for each position, if advertising is for more than one vacancy)
terms of employment (for example, project-based, permanent position)
language of work
wage (must include any incremental raises, performance pay or bonuses);
a wage range can be used for the purposes of complying with the advertisements; however, the minimum wage in the range must meet prevailing wage
benefits package offered (if applicable)
location(s) of work (local area, city or town)
contact information: telephone number, cell phone number, email address, fax number, or mailing address
skills requirements (includes education and work experience)
Proof of advertisement
You must demonstrate that you have made efforts to recruit qualified Canadians and permanent residents by providing these documents as proof of advertisement with your application:
a copy of the advertisement and information to support where, when and for how long the position was advertised
proof that the print media and websites used to advertise target an audience that has the appropriate education, professional experience or skill level required for the occupation
proof of other recruitment activities (for example, invoice from Job Fair)
An employment contract must be prepared and signed by you and the temporary foreign worker to ensure that all parties involved are aware of their rights and obligations. The temporary foreign worker must sign it before arriving in Canada.
You can use this sample format of a contract (PDF 28.85 KB).
All employers applying to the Temporary Foreign Worker Program (TFWP) must supply documents along with their Labour Market Impact Assessment application to demonstrate that their business and job offer is legitimate.
A business legitimacy document to demonstrate that the business is legal and is offering a good or service in Canada.
A business legitimacy document proving that you have been in business for a minimum of one year.
Canada Revenue Agency (CRA) documents (T2 Schedule 100 Balance Sheet Information and T2 Schedule 125 Income Statement Information) for the most recent 2 years
T4 Summary of remuneration paid
PD7A Statement of account for current source deductions
Proof of Providing a good or service:
T4SUM Summary of Remuneration Paid (Year-end 2019)
Ability to fulfill terms of the job offer: o Schedule 100 – Balance Sheet Information (2 recent years)
Schedule 125 – Income Statement Information (2 recent years)
Statement of Remittance
Employer Attestation validating No Lay Offs for the preceding year (COVID Updates)
Complete the entire application and submit it online via
Continue the advertising & recruitment campaign and keep records of the results
Participate in the phone interview with the ESDC officer
Finally, the LMIA process comes to an end with a phone interview with an ESDC LMIA officer. The purpose of the conversation is to confirm the LMIA application information, review any changes that may have occurred since the submission, discuss the recruitment campaign and its results. As noted earlier, an updated summary of the recruitment data may be requested. Following the interview, the officer will make the decision.
We help you with detailed instructions and interview preparation.
Receive the LMIA decision
The approved LMIA decision becomes a supporting document for the foreign worker. Once the work permit application is approved, the foreign worker may start work in Canada or apply for PR.
Please contact us for more information.