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AN EMPLOYER NEEDS AN LMIA TO HIRE FOREIGN WORKERS


A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada may need to get before hiring a foreign worker. A positive LMIA will show that there is a need for a foreign worker to fill the job. It will also show that no Canadian worker or permanent resident is available to do the job.
There are some exemptions to some employers or organizations needing an LMIA
The following are key considerations when an employer applies for an LMIA

  • Salary should be consistent to that offered to Canadian workers.
  • Any collective bargaining involved.
  • Is there a labor shortage for that occupation in the area the position is located?
  • Employers effort to recruit and train local Canadian workers.
  • Will the foreign worker be able to transfer unique skills or expertise to Canadians?
  • Will hiring the foreign worker help to create or retain jobs for Canadians?

The federal government has frozen caps on the number of Temporary Foreign Workers a business can hire.
Limits were due to be reduced from 20 per cent to 10 per cent of a company’s workforce from July 1.

But following a review of the Temporary Foreign Worker Program, the Liberals have decided to keep the cap at 20 per cent for the foreseeable future.
The move was welcomed overall, although many businesses say they had already begun reducing numbers in anticipation of the cap deadline.
These are primarily in the following industries

As of April 30, 2022 and until further notice, you are subject to a 20% cap limit on the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. The cap is to ensure that Canadians or permanent residents are considered first for available jobs.

For applications received between April 30, 2022 and April 30, 2023 from employers hiring workers in low-wage positions in the following defined sectors and sub-sectors, you are eligible for a cap limit of 30%:

  • Construction (NAICS 23)
  • Food Manufacturing (NAICS 311)
  • Wood Product Manufacturing (NAICS 321)
  • Furniture and Related Product Manufacturing (NAICS 337)
  • Hospitals (NAICS 622)
  • Nursing and Residential Care Facilities (NAICS 623)
  • Accommodation and Food Services (NAICS 72)

The sectors and sub-sectors classification code is determined by the North American Industry Classification System (NAICS) Canada.

You must complete the Cap for Low-wage Positions section of the Labour Market Impact Assessment application to determine if you are within the proportion of temporary foreign workers that you can hire in low-wage positions at a specific work location. You may be asked to submit documents, such as payroll records, to support the information provided.

CITRN is holding recruitment licenses for many of the Provinces in Canada
We also provide LMIA and recruitment services.
Let the experts take care of your LMIA and recruitment

Closed Work Permit – LMIA Required – Employer Specific

Type of work permit

Who does it apply to?

What does it do?

Restrictions?

Next Steps?

TFWP – High wage work permit

Foreign nationals who have received an offer of employment from an employer with a positive LMIA

Allows the foreign national to apply for a work permit using the positive LMIA on the basis of the position offered

Foreign national unable to work for any other employer. There may also be geographical restrictions

After obtaining Canadian experience foreign national can apply for PR through one of the appropriate streams

TFWP – low wage work permit

Foreign nationals who have received an offer of employment from an employer with a positive LMIA

Allows the foreign national to apply for a work permit using the positive LMIA on the basis of the position offered

Foreign national unable to work for any other employer. There may also be geographical restrictions

After obtaining Canadian experience foreign national can apply for PR through one of the appropriate streams

TFWP – Agriculture work permit

Foreign nationals who have received an offer of employment from an employer with a positive LMIA primarily in agriculture

Allows the foreign national to apply for a work permit using the positive LMIA on the basis of the position offered

Foreign national unable to work for any other employer. There may also be geographical restrictions. Must be an occupation and activities related to primary agriculture

After obtaining Canadian experience foreign national can apply for PR through one of the appropriate streams

TFWP – Global Talent Stream

For specialized and highly-skilled foreign workers who are required by innovative firms in Canada to assist with scaling-up and growth.

Allows the foreign national to apply for a work permit using the positive LMIA on the basis of the position offered

Foreign national unable to work for any other employer. There may also be geographical restrictions

After obtaining Canadian experience foreign national can apply for PR through one of the appropriate streams

frequently asked questions

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What is an LMIA?

An LMIA (Labour Market Impact Assessment) is a document issued by ESDC that allows a Canadian employer to hire a temporary foreign worker. It confirms that no Canadian citizen or permanent resident is available to do the job, and the foreign worker is needed.

Who needs an LMIA?

Canadian employers need an LMIA when hiring a foreign national under the Temporary Foreign Worker Program (TFWP). Some positions under International Mobility Program (IMP) are LMIA-exempt, but most low-wage and high-wage jobs require it.

How do I apply for an LMIA?

To apply:

  • Advertise the position locally for 4 weeks,
  • Gather recruitment proof,
  • Complete and submit the LMIA application form,
  • Pay the application fee (CAD $1000 per position),
  • Wait for ESDC’s decision.

CITRN helps you manage this entire process and avoid rejection.

How long does LMIA processing take?

Standard processing takes 8–12 weeks, but Global Talent Stream and some agriculture and caregiver roles have priority timelines. CITRN can help identify fast-track LMIA options based on your job offer.

What happens after LMIA is approved?

Once approved:

  • The foreign worker receives a positive LMIA letter,
  • They apply for a work permit using this letter and the job offer,
  • Upon approval, they can legally work in Canada for your company.

CITRN supports both employer and worker in completing the next steps efficiently.

Can I apply for LMIA without a job offer?

No, LMIA is an employer-driven process. Only Canadian businesses with a legitimate job offer and active operations can apply. Job seekers should connect with licensed recruiters like CITRN who work with LMIA-approved employers.

What types of LMIAs are available?

There are several LMIA types:

  • High-wage stream,
  • Low-wage stream,
  • Agricultural stream,
  • Caregiver stream,
  • Global Talent Stream (GTS) for tech roles.

CITRN matches your business or skills with the most suitable LMIA type.

Can I use LMIA to apply for permanent residency?

Yes. If you're a worker with a valid LMIA-based job offer, you may gain extra points under Express Entry or become eligible under a Provincial Nominee Program (PNP). LMIA can be a strong pathway to PR.

What are the employer’s obligations under LMIA?

Employers must:

  • Pay workers fair wages as per prevailing rates,
  • Ensure safe and legal working conditions,
  • Follow reporting and compliance regulations.

At CITRN, we help you stay compliant with ESDC guidelines.

Why trust CITRN with your LMIA needs?

CITRN holds recruitment licenses across multiple Canadian provinces, along with ICCRC certification and $1M+ liability insurance. With over 35 years of experience, we offer:

  • Full-service LMIA documentation and filing,
  • Worker sourcing from overseas,
  • Compliance management and renewals.

Our mission: Bridging Labour Gaps with Trust and Precision.

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