Labour Market Impact Assessment (LMIA): 2026 Guide

A Labour Market Impact Assessment (LMIA) is part of the Temporary Foreign Worker Program (TFWP). Service Canada, for Employment and Social Development Canada (ESDC), assesses the employer's job offer. A positive LMIA confirms that there is a need for a foreign worker and that no Canadian or permanent resident is available to do the job. The legal test is in section 203 of the Immigration and Refugee Protection Regulations (IRPR): the offer must be genuine, and hiring the worker must be likely to have a neutral or positive effect on the labour market.

The LMIA is not a work permit. It is the employer's approval to make the offer. The worker then applies to Immigration, Refugees and Citizenship Canada (IRCC) for an employer-specific work permit tied to that employer, occupation and location.

LMIA processing fee per position, paid by the employer

$1,000

Usual cap on low-wage foreign workers at a work location

10%

Unemployment rate that stops most low-wage LMIAs in a census metropolitan area

6%

Longest validity of a positive LMIA; the worker must apply for the permit within it

6 months

1. April 1, 2026

   Low-wage LMIAs need 8 weeks of advertising and youth recruitment

2. April 1, 2026, to March 31, 2027

   Temporary cap relief for rural employers in participating provinces

3. July 17, 2026

   New high-wage thresholds for LMIAs received from this date

4. October 9, 2026

   Updated unemployment rates for the low-wage refusal to process

   These rates apply to applications submitted until January 7, 2027. The next update is January 8, 2027.

5. November 3, 2026

   Express Entry job offers no longer need an LMIA

The wage you offer decides the stream. Compare it with the hourly wage threshold for the province or territory of the job, which is the median hourly wage there plus 20%. At or above the threshold, you apply in the high-wage stream; below it, in the low-wage stream. ESDC warns that raising a wage only to fit a stream, or to avoid a requirement, can lead to a negative LMIA.

• A real employerThe employer hires, sets working conditions and pays the worker directly. Staffing agencies that place workers with other businesses are not employers under the program, and workers cannot be treated as independent contractors.
• A legitimate businessDocuments such as the business licence and Canada Revenue Agency tax documents show the business and the job offer are real.
• Full-time workAt least 30 hours a week, with duties that match the occupation.
• Prevailing wageThe higher of the Job Bank median wage for the occupation and area, or the wage paid to current employees in the same job and location. Only guaranteed wages count, not overtime, tips or bonuses.
• Recruitment firstAdvertising and recruitment as set for the stream, with records kept for at least 6 years. At least one activity must continue until the decision.
• No recruitment fees from the workerNeither the employer nor anyone recruiting for it may charge or recover fees from the worker. Failing this leads to a negative LMIA.
• ProtectionsPrivate emergency health insurance until provincial coverage starts, workplace safety coverage where required, and a signed employment agreement in English or French on or before the first day of work.
• Not an ineligible employerEmployers on IRCC's non-compliant list, or that regularly offer striptease, erotic dance, escort services or erotic massage, cannot get an LMIA.

Transition plan: in the high-wage stream, the employer commits to activities to recruit, retain and train Canadians and permanent residents and reduce its use of the program. An employer applying again for the same position and location reports on its earlier commitments. Some positions are exempt, for example some in-home caregiver and health care provider positions, primary agriculture, positions of limited duration (up to 2 years) and positions with unique skills such as TEER 0 occupations.

LMIAs are not ranked or drawn. Service Canada assesses each application. In the low-wage stream, however, several rules stop an application before it is assessed. When Service Canada refuses to process an application, it does not charge the fee and sends a letter with the reason.

• Unemployment of 6% or higher: Service Canada will not process a low-wage LMIA for a work location in a census metropolitan area (CMA) with an unemployment rate of 6% or higher. For applications submitted from October 9, 2026, to January 7, 2027, 30 of the 41 CMAs in ESDC's table are at or above 6%, including Toronto, Montréal, Vancouver, Calgary, Edmonton and Ottawa-Gatineau. The CMAs below 6% are Québec, Saguenay, Sherbrooke, Trois-Rivières, Drummondville, Saint John, Thunder Bay, Winnipeg, Kamloops, Chilliwack and Victoria. Work locations outside a CMA remain eligible.
• Exempt from that refusal: primary agriculture, construction, food manufacturing, hospitals, nursing and residential care facilities, some in-home caregiver positions, LMIAs only to support permanent residence, and truly temporary or highly mobile jobs of generally 120 days or less (on written request).
• The cap: low-wage foreign workers may be no more than 10% of the total workforce at a work location, or 20% in construction, food manufacturing, hospitals, nursing and residential care facilities and some in-home caregiver positions. A work location with fewer than 10 employees is counted as 10, so it may have 1 low-wage foreign worker (2 under the 20% cap).
• No cap applies to on-farm primary agriculture, some caregiving jobs in health care institutions, LMIAs only for permanent residence, short jobs of generally 120 days or less, and seasonal jobs of no more than 270 days.
• Rural relief until March 31, 2027: outside CMAs, employers in participating provinces and territories may keep a share above the cap or use a 15% cap, depending on the province. Alberta, Ontario and Nunavut are not participating; ESDC lists Prince Edward Island, Saskatchewan and Yukon as still to be determined.
• Montréal and Laval: until December 31, 2026, certain low-wage LMIAs for work locations in these economic regions are not processed.
• Other refusals to process: in-home caregiver positions with a live-in requirement (with exceptions for high medical needs), and any position if the employer had an LMIA revoked in the past 2 years for false or misleading information.

1. 1

   Check whether an LMIA is needed

   The employer reviews IRCC's LMIA exemption codes and work permit exemptions. If the worker already has an open work permit, no LMIA is needed.

2. 2

   Choose the stream and check the rules

   Compare the offered wage with the threshold, confirm the prevailing wage on Job Bank, and check the cap and the refusal to process rules for the work location.

3. 3

   Recruit Canadians and permanent residents

   Advertise for at least 4 consecutive weeks (high-wage) or 8 consecutive weeks (low-wage) within the 3 months before applying, using Job Bank with Job Match and Direct Apply.

4. 4

   Apply through LMIA Online

   The employer needs a Job Bank for Employers account. An application can be made up to 6 months before the job starts. It is complete only when all documents are signed and uploaded and the fee is paid. In British Columbia, Manitoba, Saskatchewan and Nova Scotia, the employer must first register with the province. In Quebec, for jobs of more than 30 consecutive days, the employer applies to Service Canada and Quebec's immigration ministry at the same time.

5. 5

   Receive the decision

   Service Canada may contact the employer directly to verify information in the application. The processing time ends when the employer receives a positive or negative decision letter.

6. 6

   Send the documents to the worker

   The employer gives the worker a copy of the decision letter, its Annex A (employment details) and the signed employment contract. In Quebec, the worker also needs the Quebec Acceptance Certificate (CAQ).

7. 7

   The worker applies for a work permit

   The worker must apply to IRCC before the LMIA expires. A positive LMIA is valid for up to 6 months; the job itself can start later.

The LMIA fee is not refunded if the application is withdrawn, cancelled or negative; it is refunded only if collected in error. It cannot be paid by, or recovered from, the worker. No LMIA fee applies to some in-home caregiver positions (for example, a family with a gross income of $150,000 or less hiring child care for a child under 13) and to on-farm primary agriculture positions.

ESDC publishes average LMIA processing times each month, in business days, by stream. They do not include the advertising period, which comes before the application. The live figures appear below, with IRCC's work permit times.

A positive LMIA does not guarantee the work permit. IRCC can still refuse the worker, for example if the officer is not satisfied the worker can do the job (IRPR s. 200(3)(a)) or will leave Canada at the end of the authorized stay (IRPR s. 200(1)(b)).

• The work permit must match the LMIA: same employer, occupation, wage and location. Changes to the job may need a modification to the positive LMIA or a new application.
• Employers must review the prevailing wage at the start of employment and every year, and can never pay less than the wage in the positive LMIA.
• To extend an LMIA-based permit, the worker usually needs a new LMIA. ESDC advises workers to apply to IRCC after the employer receives the new LMIA, or within 2 weeks of the permit's expiry.
• The worker's spouse or common-law partner may qualify for an open work permit if the job is in TEER 0 or 1, or a select TEER 2 or 3 occupation, and the worker's permit is valid for at least 16 months after IRCC receives the spouse's application.
• Canadian work experience gained on the permit can count for the Canadian Experience Class or a provincial nominee program.