Labour Market Impact Assessment (LMIA) Canada 2025: Complete Guide
A Labour Market Impact Assessment (LMIA) is an official document issued by Employment and Social Development Canada (ESDC) that most Canadian employers need before hiring a foreign worker. The LMIA process is designed to ensure that hiring a foreign national will not negatively impact the Canadian labour market; it proves that no qualified Canadian citizen or permanent resident is available to fill the position.
How the LMIA Process Works in 2025
- Employer Application: The Canadian employer applies for an LMIA and must demonstrate efforts to recruit Canadians/permanent residents first (job advertising, recruitment documentation, etc.).
- LMIA Decision: If approved, the employer receives a positive LMIA. The foreign worker can then use this to apply for a work permit.
- Purpose: The process ensures the protection of Canadian job opportunities and sets standards for wages and working conditions.
Key 2025 Changes & Updates
- Targeted Restrictions: Since April 2025, the government has implemented temporary restrictions on low-wage LMIA applications in urban areas (Census Metropolitan Areas) with unemployment rates of 6% or higher. In affected regions, low-wage LMIA applications are not processed until at least October 10, 2025, unless the local unemployment rate drops below the threshold at the quarterly review.
- High-Wage Stream Thresholds: Employers can transition to the high-wage stream by offering at least 20% more than their provincial median wage. For example, Ontario’s threshold is about $34.07 per hour in 2025; rates vary by province.
- New Validity Period: LMIAs now have a validity of only 6 months (down from 12–18 months), meaning the work permit application must be submitted within this shorter window.
- Enhanced Employer Requirements: High-wage stream LMIAs now require a detailed “transition plan”—a strategy showing how the employer will reduce future reliance on foreign workers and support the PR pathway of any hired worker.
- Documentation & Processing: Updated wage thresholds, stricter proof of recruitment, business legitimacy attestations, and more detailed application forms in all streams.
2025 LMIA Processing Times
| Stream | Average Time (Business Days) |
|---|---|
| Global Talent Stream | 7–9 |
| High-Wage Stream | 50 (8–12 weeks) |
| Low-Wage Stream | 50 (10–16 weeks; longer in restricted areas) |
| Agricultural Stream | 14 |
| Seasonal Agricultural Worker Program | 8 |
| Permanent Resident Stream | 235 |
Who Needs an LMIA?
- Most temporary foreign workers require an LMIA-supported job offer for work permits under the Temporary Foreign Worker Program (TFWP).
- Certain streams, such as Express Entry (for CRS points), may also require a valid LMIA-backed job offer.
- Low-wage and high-wage position classification is determined by the job’s wage compared to the provincial/territorial median as of the latest published wage data.
LMIA Exemptions (International Mobility Program)
- International Agreements: U.S. and Mexico (CUSMA/USMCA/T-MEC), Chile (CCFTA), and other trade partners.
- Intra-Company Transfers: Moving to a Canadian branch as a manager, executive, or worker with specialized knowledge.
- Provincial Nominees: Those nominated for PR through a PNP with an employer-based offer.
- Francophone Mobility: French-speaking skilled workers destined for provinces outside Quebec (Mobilité Francophone).
- Academic, Charitable, or Religious Workers and Post-Doctoral Fellows.
- Open Work Permits: For spouses of skilled workers/students (in most cases), refugee claimants, and special humanitarian cases.
Tips and Important Notes for 2025
- Plan Ahead: Due to increased scrutiny and changing rules, apply early and prepare all required documents.
- Monitor Regional Unemployment Rates: LMIA feasibility for low-wage positions depends on the latest published unemployment data in your region.
- Consider Alternative Pathways: Explore LMIA-exempt options if eligible (e.g., IMP, PNPs).
- Check Wage Thresholds: New wage tables, updated July 2025, determine your application stream and regional eligibility.
Frequently Asked Questions
- What happens if my region’s unemployment rate changes? If it falls below 6%, low-wage LMIA processing may resume at the next quarterly review.
- Are all sectors under restrictions? Some, like agriculture, construction, and healthcare, may be exempt from the low-wage LMIA pause—check sector-specific policies for updates.
- Is a job offer enough? No, the employer must obtain a positive LMIA before you may apply for a work permit (unless exempt).
- Can I renew my work permit if the region is under LMIA pause? Not for low-wage LMIA-based jobs; consider switching to high-wage, another employer, LMIA-exempt, or PR pathways.
Why Is LMIA Important?
- Protects Canadian labour market and ensures fair wages for foreign workers.
- Necessary for most employer-specific work permits and for candidates seeking CRS points in Express Entry.
- Sets clear requirements for employers, increasing transparency and long-term economic planning.
