Labour Market Impact Assessment

Labour Market Impact Assessment
(LMIA)

JG-CIS

What is a Labour Market Impact Assessment?

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) that assesses the potential impact of hiring a foreign worker on Canada’s labor market. It is a crucial part of the process for employers who want to hire foreign nationals to work in Canada.

When is LMIA needed?

An LMIA is generally required when an employer in Canada wants to hire a foreign worker for a temporary work position. The LMIA helps ensure that hiring a foreign worker will not negatively affect Canada’s labor market by demonstrating that no qualified Canadian citizens or permanent residents are available for the job. However, there are specific situations when an LMIA is needed:

The LMIA Process

Employer’s Need for a Foreign Worker
LMIA Application. -> If the employer decides to proceed with hiring a foreign worker, they need to apply to Employment and Social Development Canada (ESDC) for an LMIA.

When is lmia needed?

Most Temporary Work Permits

Low-Wage or High-Wage Jobs

Seasonal or Temporary Workers

Occupational with Labor Shortage

Employers Wanting to Bring Foreign Workers Under the Temporary Foreign Worker Program (TFWP):

The LMIA process

1. Employer’s Need for a Foreign Worker

2. LMIA Application

If the employer decides to proceed with hiring a foreign worker, they need to apply to Employment and Social Development Canada (ESDC) for an LMIA.

3. LMIA Assessment by ESDC

Once the application is submitted, Employment and Social Development Canada (ESDC) reviews the application to determine whether hiring a foreign worker will negatively impact the Canadian labor market.

4. LMIA Decision

After the assessment, ESDC will issue a decision

5. Worker applies for a Work Permit

Once the employer receives a positive LMIA, the foreign worker can apply for a work permit through Immigration, Refugees and Citizenship Canada (IRCC).

6. Work Permit Issued

If the work permit application is approved, the foreign worker will receive their work permit and can legally come to Canada to fill the job.

7. Employer Compliance

Once the foreign worker is hired, the employer must comply with the conditions of the LMIA and the Temporary Foreign Worker Program (TFWP). This includes maintaining records of the foreign worker’s employment and ensuring that the working conditions and wages are as stated in the LMIA application. If the employer is found to be non-compliant, they may face penalties, including fines, bans on hiring foreign workers, or other enforcement actions.