If you are a Canadian employer hiring a foreign worker, you will usually need a positive Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC) before the worker can apply for a work permit. An LMIA shows that hiring the worker will not hurt Canadian jobs.
This guide covers the LMIA streams, the 2026 rule changes, costs, processing times, recruitment, documents and the ESDC interview, so you can plan your hire with fewer surprises.
Key takeaways for 2026
- Low-wage LMIAs now need 8 consecutive weeks of advertising and youth-focused recruitment (since April 1, 2026).
- Low-wage LMIAs are not processed in 30 census metropolitan areas with unemployment of 6% or more, including Toronto, Vancouver, Calgary and Ottawa-Gatineau (list in force October 9, 2026 to January 7, 2027).
- A position is high-wage only if it pays at or above the provincial or territorial median wage plus 20%.
- The government processing fee is $1,000 per position. A positive LMIA is valid for 6 months.
- Many hires don’t need an LMIA at all. Check the exemptions first.
What does an LMIA mean for Canadian employers?
An LMIA is a decision from ESDC on whether hiring a foreign worker will have a positive, neutral or negative effect on the Canadian labour market. If the effect is positive or neutral, ESDC issues a positive LMIA (sometimes called a confirmation letter), and the worker can use it to apply for a work permit with Immigration, Refugees and Citizenship Canada (IRCC).
Not every employer needs one. The International Mobility Program covers LMIA-exempt work permits, such as intra-company transfers, CUSMA professionals and the C11 entrepreneur work permit. Check these first. An exemption is often faster and cheaper.
Start with the right question
Before you start recruiting, confirm that your position actually needs an LMIA. If an exemption fits, you can skip the advertising, the fee and the ESDC review.
What changed for LMIAs in 2026?
The program has tightened, mostly for low-wage jobs. These are the changes that affect most employers right now.
Longer advertising for low-wage jobs
What changed
Low-wage LMIAs need at least 8 consecutive weeks of advertising (up from 4) within the 3 months before you apply, plus recruitment aimed at youth.
What to do
Start advertising earlier and add youth channels, such as school job boards or youth employment programs.
Low-wage freeze in 30 cities
What changed
ESDC won’t process low-wage LMIAs in CMAs with 6% or higher unemployment. From October 9, 2026 to January 7, 2027 that includes Toronto, Ottawa-Gatineau, Hamilton, Montréal, Calgary, Edmonton and Vancouver.
What to do
Check the work location’s postal code against ESDC’s table on the day you submit. Some sectors and short jobs are exempt.
Higher bar for high-wage
What changed
A job is high-wage only if it pays at least the provincial or territorial median wage plus 20%. Thresholds were updated on July 17, 2026.
What to do
Confirm the current threshold before you set the wage in your job ad.
Temporary rural relief
What changed
In participating provinces and territories, rural employers may keep their current low-wage workers or hire up to 15% of their workforce in low-wage roles.
What to do
Check whether your province takes part before relying on the higher cap.
Which LMIA stream fits your position?
The stream depends on the occupation, the wage, the location and how long you need the worker. Most employers apply under the high-wage or low-wage stream.
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High-wage and low-wage positions
Set by the wage you offer compared with the provincial or territorial threshold. See the comparison below.
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Global Talent Stream
For innovative firms referred by a designated partner, or for in-demand tech occupations. No advertising requirement and a 10-business-day service standard. Learn more.
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Primary agriculture
For farm, livestock and greenhouse roles, including the Seasonal Agricultural Worker Program.
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Supporting permanent residence
For a job offer that supports a provincial nominee or other PR application. Since March 25, 2025, a job offer no longer earns Express Entry CRS points.
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In-home caregivers
For caregivers of children, seniors or people with high medical needs.
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Foreign academics
For universities and colleges hiring professors and researchers.
High-wage vs low-wage LMIA in 2026
| Requirement | High-wage | Low-wage |
|---|---|---|
| Wage offered | At or above the provincial or territorial median wage + 20% | Below that threshold |
| Advertising | At least 4 consecutive weeks within the 3 months before you apply | At least 8 consecutive weeks within the 3 months before you apply, plus youth-focused recruitment |
| Extra plan | Transition plan to reduce reliance on foreign workers | No transition plan, but stricter caps |
| Workforce cap | None | 10% of workers at the location (20% in construction, food manufacturing, hospitals and nursing homes) |
| 6% unemployment rule | Does not apply | Not processed in listed CMAs with 6%+ unemployment |
| Work permit length | Set by IRCC based on the job; usually longer | Up to 1 year |
Thresholds are updated each year. Check the current table before you set the wage.
How does the LMIA process work?
Every stream follows the same basic path. The recruitment step takes the longest, so start there.
For the full walkthrough, including documents, the LMIA Online portal and what happens after you submit, see our LMIA application process guide.
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1
Recruit in Canada
Advertise on Job Bank and at least two other sources for the required period, and assess every Canadian and permanent resident applicant.
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2
Apply to ESDC
Submit the application, supporting documents and the $1,000 fee through the LMIA Online Portal.
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3
Officer review
An ESDC officer reviews the file and often calls you for an interview about the job and your recruitment.
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4
Decision and work permit
If positive, the worker has 6 months to apply to IRCC for the work permit. IRCC makes the final decision.
How long does an LMIA take in 2026?
Processing times rose through 2026, especially for the high-wage stream. These are ESDC’s published averages for applications processed in July 2026. They are averages, not guarantees, and they do not include your recruitment period.
Average LMIA processing times (ESDC, July 2026)
| Stream | Average processing time |
|---|---|
| Global Talent Stream | 10 business days |
| Seasonal Agricultural Worker Program | 8 business days |
| Agricultural stream | 23 business days |
| Low-wage stream | 73 business days |
| Permanent residence stream | 86 business days |
| High-wage stream | 88 business days |
Add 4 to 8 weeks of advertising before you can apply. Check ESDC’s current processing times before you set a start date.
Plan backwards from the start date
For a high-wage role, a realistic plan is about 1 month of advertising, 3 to 4 months of ESDC processing, and then the work permit. Incomplete files and missed interview calls add delays.
How much does an LMIA cost?
Plan for roughly $5,000 to $9,000 per position, depending on how much you advertise, whether you cover the worker’s permit costs, and the level of legal support. By law, the employer pays the LMIA costs, not the worker.
You cannot pass these costs to the worker
You may not recover the LMIA fee or recruitment costs from the worker, directly or indirectly, and you must make sure recruiters don’t charge them either. Breaking this rule can lead to repayment orders, fines, a ban from the program and public listing as a non-compliant employer.
How do you choose the right NOC code and wage?
The National Occupational Classification (NOC) code drives the wage you must pay, how ESDC reads the local labour market, and how IRCC later checks the worker’s qualifications. Canada uses NOC 2021, with five-digit codes and TEER categories.
Search the NOC 2021 by job title, then read the lead statement, main duties and employment requirements of each match.
Most jobs fit more than one code. Match your real duties and requirements to the NOC, not the job title. A wrong code is one of the most common reasons for refusal.
Review Job Bank’s labour market information for each possible code in your region. ESDC will look at the same data.
Make sure the median wage for the code fits your budget. You must pay at least that wage, even if it is more than some of your current staff earn.
ESDC rarely tests the worker’s qualifications, but IRCC and the border officer will. A positive LMIA does not help if the work permit is refused.
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Find the prevailing wage
On Job Bank, go to Wages, enter the five-digit NOC code and choose the economic region. If there is no local figure, use the provincial median, then the national one.
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Pay the higher of two numbers
The wage must be at least the prevailing (median) wage, or what you pay Canadians in the same role at the same location, whichever is higher.
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Base pay only
Commissions, bonuses and benefits do not count toward the minimum. Keep the wage current for the whole permit.
How do you advertise an LMIA job?
ESDC must see a genuine effort to hire Canadians and permanent residents first. Weak or poorly documented recruitment is one of the most common reasons for refusal.
In short: advertise on Job Bank plus at least two other methods within the 3 months before you apply. High-wage ads must run for at least 4 consecutive weeks; since April 1, 2026, low-wage ads must run for at least 8 and reach youth and under-represented groups. Track every applicant and record why each was not hired.
The full rules, ad content checklist and record-keeping steps are in our LMIA recruitment and advertising guide.
What documents do you need to apply?
You apply through the LMIA Online portal. Most files need the application form for your stream, proof that your business is legitimate (such as CRA notices of assessment and financial statements), the job offer, your recruitment evidence, a transition plan for high-wage jobs, and the $1,000 fee per position.
The exact list depends on your stream. Our LMIA application process guide walks through each document and how to submit.
Why are LMIA applications refused?
Officers now apply far more scrutiny. In our practice, well-prepared high-wage LMIAs are still approved more than 90% of the time, and Global Talent Stream applications more than 95%. Low-wage files face the toughest rules, and many are now refused to process before an officer looks at them.
Weak recruitment
Why it hurts
Gaps in advertising, missing ad content or unexplained rejections of Canadian applicants lead ESDC to find the effort was not genuine.
What works instead
Run every ad for the full period, keep weekly proof and record why each applicant was not hired.
No clear business need
Why it hurts
If the role looks unnecessary, or the business can’t afford it, the officer may doubt the offer is genuine.
What works instead
Show financials, growth plans and what happens to the business if the role stays empty.
Technical mistakes
Why it hurts
Wrong NOC code, wage below the threshold, missing documents or misuse of Job Bank’s job-match tool can each sink a file.
What works instead
Check the NOC, wage and document list against ESDC’s current rules before you submit.
Refused before processing
Why it hurts
ESDC refuses to process low-wage jobs above the workforce cap or in high-unemployment CMAs, live-in caregiver jobs, and any job from an employer with an LMIA revoked in the past 2 years.
What works instead
Check the cap, location and your compliance history first, or look at an LMIA-exempt route.
How do you prepare for the ESDC officer interview?
Many employers get a call from an ESDC officer to verify the business, the job and the recruitment. Treat it like an audit of your file: your answers must match your documents.
Someone who knows the business, its staffing needs and the recruitment history, such as an owner or HR lead. Your lawyer can join to help keep answers accurate and consistent.
Legal name, CRA business number, address and operating history; your ads, applications received and interview notes; and evidence of business need, such as financials or growth plans.
- Your business: name, CRA number, location, number of employees and activities.
- Recruitment: how many Canadians applied and why they were not hired.
- Impact: how the hire creates or keeps Canadian jobs, transfers skills, and what the wage, hours and benefits are.
- Why could you not hire a Canadian or permanent resident for this position?
- What skills does this candidate bring that are hard to find in Canada?
- How will this role create or protect jobs for Canadians?
- How will you train Canadians to take on this role later?
Tip
Practise your answers with your lawyer. Keep them short, factual and consistent with what you submitted.
What happens after your LMIA is approved?
A positive LMIA is valid for 6 months. Within that time, the worker must apply to IRCC for the work permit. IRCC makes the final decision and checks that the worker meets the job requirements.
Help the worker’s application with a clear job offer and a support letter explaining why the worker is qualified and how you assessed their skills. After the worker arrives, you must follow the LMIA terms on wages, duties and working conditions. ESDC can inspect you for up to 6 years.
If the worker leaves
Treat the worker like any other employee for performance and termination. If employment ends, notify ESDC and IRCC in writing with the LMIA number, and keep the confirmation in the worker’s file.
LMIA: Frequently asked questions
No. Employers that regularly offer sex-industry services are not eligible. Neither are employers on the IRCC ineligibility list, such as those found non-compliant or with unpaid penalties.
Yes. ESDC refuses to process low-wage jobs above the 10% or 20% workforce cap, low-wage jobs in CMAs with unemployment of 6% or more, live-in caregiver jobs, certain low-wage jobs in Montréal and Laval, and any job from an employer whose LMIA was revoked in the past 2 years. No fee is charged when an application is refused to process.
Common exemptions include intra-company transfers, professionals under free trade agreements such as CUSMA, CETA and CPTPP, the C11 entrepreneur work permit, and some reciprocal and spousal work permits. Exempt employers still pay an employer compliance fee and submit the offer through the IRCC Employer Portal.
The employer pays. The ESDC fee is $1,000 per position, and you cannot recover it or any recruitment cost from the worker. The fee does not apply to some in-home caregiver positions (for example, families earning under $150,000 hiring child care) or to applications that only support permanent residence.
ESDC ended its special owner-operator LMIA processing on April 1, 2021. Owners who want to run their own business in Canada usually look at the C11 entrepreneur work permit or a provincial entrepreneur stream instead.
IRCC sets the length based on the job and the duration ESDC recommends. Low-wage work permits are limited to 1 year. High-wage permits are usually longer, depending on the role and your transition plan.
It can support some provincial nominee applications. Since March 25, 2025, a job offer, including one backed by an LMIA, no longer adds CRS points in Express Entry.
Final thoughts
An LMIA is still the main way to hire a foreign worker in Canada when no exemption applies, but the 2026 rules leave little room for error, especially for low-wage jobs. Check for an exemption first, set the wage against the current threshold, run clean recruitment, and keep proof of every step.
Related guides: High-wage LMIA, Low-wage LMIA, Global Talent Stream and Hiring foreign workers in Canada.
This page is general information as of October 2026, not legal advice. LMIA rules change often; check ESDC’s current requirements or speak with a lawyer before you apply.
