LMIA stands for Labour Market Impact Assessment. It is a document that employers in Canada need to obtain before they hire foreign workers. The main purpose of an LMIA is to demonstrate that a Canadian employer is unable to fill a position with a local Canadian worker. This is done by advertising the job in Canada and making efforts to hire Canadians, proving that the applicants are not qualified for the position offered. Once an employer applies for the LMIA, they will await a document of approval from Employment and Social Development Canada. This document is known as a positive LMIA sometimes referred to as a “confirmation letter” which confirms there is a need to hire a foreign worker. Once the employer receives the LMIA, the potential employee can apply for a work permit as long as they have a job offer letter, a contract, a copy of the LMIA, and the LMIA number.

New rules for LMIA were introduced in 2021 and 2023. As of April 3, 2023, the Temporary Foreign Worker Program is moving to online LMIA applications. Under the new LMIA system, job positions are divided into two categories: high-wage and low-wage. Jobs are considered high wage if the salary meets or exceeds the median wage in the province where the job will be performed, and low-wage if the salary is below the median. The application fee for LMIA requests is now $1000 per worker, an increase from the $275 per worker fee for LMOs.

The LMIA Online Portal is a reliable and secure electronic tool. It allows Canadian employers and third-party representatives (on behalf of employers) to submit an LMIA application to Service Canada. Employers and third-party representatives must have a valid Job Bank account for Employers for authentication purposes to access the LMIA Online Portal. Once an LMIA is issued, employers should provide a copy of the confirmation letter to each temporary foreign worker and tell each of them to apply for a work permit.

The processing times for LMIA applications vary depending on the type of application. It is important to note that Canada experienced a large volume of LMIA applications in 2021, which can result in longer processing times and possible delays, especially seen in the Temporary Foreign Worker Program.