Labour Market Impact Assessment (LMIA)

If the business is experiencing a shortage of workers or struggling to find the right talent within Canada, expanding recruitment efforts beyond national borders could offer a valuable solution. The Canadian Temporary Foreign Worker Program (TFWP) allows employers to hire foreign workers when Canadian citizens or permanent residents aren’t available to fill job vacancies. This program is managed by Employment and Social Development Canada (ESDC) and Immigration, Refugees and Citizenship Canada (IRCC).

To hire foreign workers, Canadian employers must obtain a Labour Market Impact Assessment (LMIA), a document issued by ESDC/Service Canada. This assessment confirms the need for foreign labor in a particular role and location and verifies that no qualified Canadians are available. Previously called a Labour Market Opinion (LMO), the LMIA is essential to ensure that hiring foreign nationals does not disadvantage Canadians seeking employment. A positive LMIA indicates that the foreign worker’s role will have a beneficial or neutral effect on the Canadian labor market.

The LMIA process involves advertising, recruitment, submission, and interviews and is divided into different streams:

Documentation for an LMIA application varies by industry, business location, and role. Generally required documents include advertisement copies, business registration or incorporation documents, relevant Canada Revenue Agency records, workplace safety clearance, and sometimes attestations from legal or accounting professionals. Specific streams, like caregivers, may have additional or alternative requirements based on provincial guidelines and job roles.