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LMIA Requirements for Employers

Labour Market Impact Assessments for Canadian employers hiring temporary foreign workers. Expert guidance through one of Canada's most complex and frequently changing immigration processes.

Processing fee: $1,000 CAD per position — non-refundable

Important — 2026 LMIA Rule Changes

Low-wage advertising is now 8 weeks with a new youth-recruitment requirement, and the high-wage threshold is the median hourly wage + 20% (thresholds updated July 17, 2026). The low-wage CMA processing freeze was refreshed October 9, 2026 — 30 census metropolitan areas are affected through January 7, 2027, including Halifax, Fredericton, Kingston, St. Catharines–Niagara, Regina and Lethbridge for the first time this quarter. Verify your work location before starting any LMIA recruitment.

What is an LMIA?

A Labour Market Impact Assessment (LMIA) is a document issued by Employment and Social Development Canada (ESDC) through Service Canada that an employer must obtain before hiring most temporary foreign workers under the Temporary Foreign Worker Program (TFWP). A positive LMIA confirms that no qualified Canadian citizen or permanent resident was available to fill the position, and that hiring a foreign worker will not negatively affect the Canadian labour market. The LMIA process is one of the most document-intensive and time-sensitive processes in Canadian immigration — and the rules change frequently. Asteco works directly with employers throughout the entire process.

LMIA Processing Fee

$1,000 CAD per position

The processing fee is non-refundable regardless of the outcome — whether positive, negative, withdrawn, or cancelled
You are not charged the processing fee if Service Canada refuses to process your application, or if you are an ineligible employer — you receive a letter explaining why the application was not processed
The fee cannot be charged to or recovered from the temporary foreign worker under any circumstances — doing so is a violation of the TFWP and can result in a ban from the program
Payment is made to ESDC/Service Canada at the time of application submission
Online banking payment is available for applications with 6 or more positions

High-Wage LMIA Stream

Wage at or above the threshold (median + 20%)

The high-wage stream applies when the wage offered to the temporary foreign worker is at or above the applicable provincial or territorial hourly wage threshold — defined as the median hourly wage plus 20%. These thresholds vary by province and territory and are updated periodically by ESDC.

Key Requirements

Wage offered must be at or above the provincial/territorial hourly wage threshold (the median hourly wage plus 20%) for the work location
Advertise the position for a minimum of 4 consecutive weeks within 3 months before submitting the application
Advertise on Job Bank and use at least 2 additional recruitment methods targeting underrepresented groups
Submit a Transition Plan demonstrating how the employer will reduce reliance on temporary foreign workers over time
Position must be full-time — minimum 30 hours per week
Working conditions must meet provincial employment standards

Provincial / Territorial Wage Thresholds

The wage thresholds below were updated July 10, 2026 and apply to LMIA applications received on or after July 17, 2026.

Alberta$37.50
British Columbia$38.40
Manitoba$31.33
New Brunswick$31.73
Newfoundland and Labrador$33.60
Northwest Territories$48.00
Nova Scotia$31.96
Nunavut$45.00
Ontario$36.92
Prince Edward Island$31.20
Quebec$36.00
Saskatchewan$34.62
Yukon$45.60

Wages at or above the threshold for the work province/territory fall under the high-wage stream; wages below fall under the low-wage stream.

Transition Plan Requirement

A Transition Plan is a mandatory requirement for high-wage LMIA applications. It outlines the steps the employer will take to hire Canadians and permanent residents for the position over time — such as training, apprenticeships, or increased recruitment efforts. Service Canada reviews the implementation of previous Transition Plans when assessing new applications.

The high-wage stream is not subject to the CMA unemployment-based processing freeze that applies to low-wage applications. If a position genuinely qualifies as high-wage based on the actual wage being offered, it may be processed regardless of local unemployment conditions.

Low-Wage LMIA Stream

Wage below the threshold (median + 20%) — significant 2026 changes

The low-wage stream applies when the wage offered is below the applicable provincial or territorial hourly wage threshold (the median hourly wage plus 20%) for the work location. The low-wage stream has undergone significant changes in 2026 and is subject to stricter requirements and processing restrictions.

Important Changes Effective April 1, 2026

Advertising period doubled to 8 weeks

Employers must now advertise the position for a minimum of 8 consecutive weeks within the 3 months before submitting the application. This is double the previous requirement of 4 consecutive weeks. At least one recruitment activity must remain active until ESDC issues a decision.

New youth recruitment requirement

Employers must demonstrate specific recruitment efforts to reach and encourage youth (ages 15–30) to apply before turning to a foreign worker. This can include posting on Job Bank's youth section, youth job boards, colleges, and youth employment programs. This requirement is in addition to the existing requirement to target underrepresented groups.

Minimum 4 advertising methods now required

With the addition of the youth recruitment requirement, low-wage LMIA applications must now use a minimum of 4 advertising methods: (1) Job Bank, (2) youth-targeted recruitment, and (3) at least 2 additional methods each targeting a different underrepresented group.

Key Requirements

Wage offered is below the provincial/territorial hourly wage threshold (the median hourly wage plus 20%) for the work location
Advertise on Job Bank for a minimum of 8 consecutive weeks within 3 months before application (effective April 1, 2026)
Demonstrate youth-targeted recruitment efforts (effective April 1, 2026)
Use at least 2 additional recruitment methods each targeting a different underrepresented group
Position must be full-time — minimum 30 hours per week
No Transition Plan required (unlike high-wage stream)
Working conditions must meet provincial employment standards
Employer must comply with cap on proportion of low-wage TFWs at the worksite

Cap on Low-Wage TFWs

Standard Cap

10% of total workforce at a worksite can be low-wage TFWs for most industries

Elevated Cap — Selected Sectors

A 20% cap applies to certain sectors — construction (NAICS 23), food manufacturing (NAICS 311), hospitals (NAICS 622), nursing and residential care facilities (NAICS 623), and specific in-home caregiver occupations (NOC 31301, 32101, 44100, 44101)

No Cap — Exempt Positions

On-farm primary agriculture positions (NOC 80020, 80021, 82030, 82031, 84120, 85100, 85101, 85103)
Caregiving positions for healthcare institutions (NAICS 62) for NOC 31301, 32101, and 33102
Positions in support of permanent residence only (where no work permit is required)
Short-duration positions of generally 120 calendar days or less that are truly temporary or highly mobile
Low-wage positions in seasonal industries that do not exceed 270 calendar days

Employers with fewer than 10 total workers across all Canadian worksites are limited to 1 TFW (10% cap industries) or 2 TFWs (20% cap industries).

Low-Wage LMIA Processing Freeze — CMA Unemployment Rule

ESDC does not process low-wage LMIA applications for positions located in Census Metropolitan Areas (CMAs) where the unemployment rate is 6% or higher. This freeze applies only to the low-wage stream. The list of affected CMAs is updated every quarter (on or around the 10th of January, April, July, and October) based on Statistics Canada labour force data.

These unemployment rates apply to low-wage LMIA applications submitted between October 9, 2026 and January 7, 2027. The table is refreshed every three months — always confirm the current rate for your exact work location on canada.ca before submitting.

Frozen for Low-Wage Processing (unemployment 6%+)

In effect: October 9, 2026 – January 7, 2027

✕St. John's, NL — 6.4%
✕Halifax, NS — 6.1%
✕Moncton, NB — 8.1%
✕Fredericton, NB — 6.2%
✕Montréal, QC — 7.2%
✕Ottawa–Gatineau, ON/QC — 7.9%
✕Kingston, ON — 6.3%
✕Belleville–Quinte West, ON — 6.4%
✕Peterborough, ON — 6.3%
✕Oshawa, ON — 9.8%
✕Toronto, ON — 7.5%
✕Hamilton, ON — 7.4%
✕St. Catharines–Niagara, ON — 6.5%
✕Kitchener–Cambridge–Waterloo, ON — 7.6%
✕Brantford, ON — 6.3%
✕Guelph, ON — 7.5%
✕London, ON — 9.1%
✕Windsor, ON — 7.9%
✕Barrie, ON — 6.2%
✕Greater Sudbury, ON — 6.2%
✕Regina, SK — 6.7%
✕Saskatoon, SK — 6.5%
✕Lethbridge, AB — 6.0%
✕Calgary, AB — 6.4%
✕Red Deer, AB — 6.9%
✕Edmonton, AB — 7.6%
✕Kelowna, BC — 8.6%
✕Abbotsford–Mission, BC — 7.6%
✕Vancouver, BC — 7.0%
✕Nanaimo, BC — 6.6%

Dropped Below 6% This Quarter — Now Open

Reopened for October 9, 2026 – January 7, 2027

Kamloops, BC — 3.6%
Chilliwack, BC — 5.6%

Next quarterly update: January 8, 2027

Exemptions from the CMA Processing Freeze

The freeze does not reach every application. Positions in the following sectors and categories remain eligible for processing even where the work location is in a CMA with an unemployment rate of 6% or higher. Note that these are exemptions from the CMA freeze only — the caps on the proportion of low-wage positions still apply.

Occupations under primary agriculture
NAICS 23 — Positions in construction
NAICS 311 — Positions in food manufacturing
NAICS 622 — Positions in hospitals
NAICS 623 — Positions in nursing and residential care facilities
Specific in-home caregiver positions in a private household under NOC 31301 (registered nurse or registered psychiatric nurse), NOC 32101 (licensed practical nurse), NOC 44100 (home childcare providers), and NOC 44101 (attendant for persons with disabilities, home support worker, live-in caregiver, personal care attendant)
Positions in support of permanent residency only (no application for a work permit)
Short-duration positions of generally 120 calendar days or less that are truly temporary or highly mobile

In-home caregivers in Quebec CMAs

In-home caregiver positions in CMAs in Quebec are exempt only where the position is requested to provide care for a person with medical needs, or for a child in the custody of a person who cannot care for them due to medical reasons. In both cases the employer must provide a physician's note attesting to the state of health of the person with medical needs.

Claiming the short-duration exemption

To use the short-duration exemption, upload a written request named "Exemption request" to LMIA Online with your application, explaining how the position is truly temporary (a specific short-term period or singular event where the position will not be filled after the worker leaves the country) or highly mobile (part of a workforce that regularly crosses provincial, territorial, or international boundaries). Examples include travelling carnival and fair operators, technicians for proprietary equipment repair, and one-time projects or events. Service Canada considers requests longer than 120 days on an exceptional basis.

Important Notes on the CMA Freeze

The freeze applies only to low-wage LMIA applications — positions that genuinely qualify for the high-wage stream based on the actual wage offered are not affected
Positions located outside CMAs (rural areas and census agglomerations) are not subject to the freeze
The list changes every quarter — always verify the current status at canada.ca before submitting an application
Foreign workers already holding valid low-wage work permits in frozen CMAs are not immediately affected, but renewals may be impacted
Asteco monitors quarterly updates and can advise employers before they invest time and money in an application that cannot be processed

Other Reasons Service Canada Will Not Process an LMIA

The CMA rule is not the only refusal-to-process measure. Service Canada will also not process an LMIA application in these situations:

The employer regularly offers services in the sex industry (striptease, erotic dance, escort services or erotic massage)
The employer is on IRCC's ineligibility list — found non-compliant in an employer compliance review, banned from the TFWP after an inspection, or in default of paying an administrative monetary penalty
The low-wage position would put the work location above the 10% cap (or 20% for construction, food manufacturing, hospitals, nursing and residential care, and specific in-home caregiver positions)
In-home caregiver positions in a private household (NAICS 814, NOC 31301, 32101, 44100 or 44101) that are advertised and applied for with a live-in requirement — limited exceptions apply (see below)
Any position, if the employer had an LMIA revoked in the past 2 years for providing false, misleading or inaccurate information
Low-wage positions on the island of Montréal or in Laval, until December 31, 2026 (see below)

Exceptions for live-in caregiver positions

High medical needs clients — for example, people with disabilities, seniors, or individuals with chronic or terminal illnesses. You must submit either a physician’s note certifying both the medical condition and the need for live-in care, or Schedule H – Medical disability, chronic or terminal illness certificate (EMP5600).

Exceptional circumstances — a written rationale submitted in the Housing section of the LMIA application form. It must explain:

  • Why live-in care is required
  • How frequently the situation requiring live-in care occurs, and to what degree you can influence that frequency
  • What other options were explored to meet the need for care, and why they were not viable
  • How you will ensure fair working conditions for the caregiver despite the live-in requirement

Montréal and Laval — temporary refusal to process

Until December 31, 2026, Service Canada will not process LMIA applications for positions with a wage below the Quebec wage threshold and a work location in the economic region of Montréal (the island of Montréal) or Laval. You are not charged the processing fee for an application refused on this basis.

Where the Montréal CMA unemployment rate is 6% or higher, the CMA rule and its exemptions decide whether the application is processed instead. The Montréal CMA is at 7.2% for applications submitted October 9, 2026 to January 7, 2027, so the CMA rule currently governs.

Outside of that, these sectors and occupations remain eligible for processing under the Montréal and Laval measure:

  • NAICS 111 — Crop production
  • NAICS 112 — Animal production and aquaculture
  • NAICS 1151 and 1152 — Support activities for crop and animal production
  • NAICS 23 — Construction
  • NAICS 311 — Food manufacturing
  • NAICS 3121 — Beverage manufacturing
  • NAICS 6111 — Elementary and secondary schools
  • NAICS 62 — Health care and social assistance
  • NAICS 6244 — Child daycare services (since January 9, 2026)
  • Specific in-home caregiver positions under NOC 31301, 32101, 44100 and 44101 — see below

In-home caregiver positions remain eligible only where the position is to provide care for a person with medical needs, or for a child in the custody of a person who cannot care for them due to medical reasons. In both cases the employer must provide a physician’s note attesting to the state of health of the person with medical needs.

To check a work location, enter its complete postal code in Statistics Canada’s Census of Population geography search and look at the “Economic region” level. If it shows Montréal or Laval, a low-wage application for that location will not be processed under this measure.

Hiring in Quebec

For a work location in Quebec and an employment period of more than 30 consecutive days, the LMIA application must be submitted to Service Canada and Quebec’s Ministère de l’Immigration, de la Francisation et de l’Intégration (MIFI) at the same time — failing to do so may affect processing
All applications must be submitted in French, and to the MIFI in the format the provincial government requires
Employers can also submit unnamed LMIA applications for most Quebec positions through the MIFI’s ARRIMA platform
Quebec maintains its own list of occupations eligible for the facilitated LMIA process (updated February 24, 2026), and ESDC prioritizes certain occupations in Quebec — but any refusal-to-process condition overrides the prioritized list

Temporary Rural Measures — April 1, 2026 to March 31, 2027

Employers located in rural areas (outside CMAs) of participating provinces and territories may be eligible for temporary measures that provide additional flexibility for low-wage TFW hiring.

Benefits

Retain their current proportion of low-wage TFWs at the worksite even if it exceeds the standard 10% cap
Benefit from an increased 15% cap on low-wage TFWs — up from the standard 10%

Conditions

Employer must be located outside a CMA (rural area)
Province or territory must be participating in the temporary measures
Employer must meet all standard TFWP requirements including demonstrating efforts to hire Canadians and permanent residents first
Only applies to new LMIA applications submitted during the effective period
Does not apply to low-wage positions under the permanent resident dual-intent stream

Alberta, Ontario, and Nunavut are not participating in these temporary measures. Participation for the Northwest Territories, Prince Edward Island, Saskatchewan, and Yukon is still to be determined. Not all participating provinces offer both benefits — some offer only the proportion-retention measure. Contact Asteco to confirm your province or territory's status.

LMIA-Exempt Alternatives — International Mobility Program

Many positions qualify for work permits without an LMIA through the International Mobility Program (IMP). LMIA-exempt pathways are often faster, less expensive, and not subject to the low-wage CMA freeze. Asteco will always assess whether an LMIA-exempt pathway is available before recommending the LMIA route.

CUSMA/USMCA

Citizens of the United States and Mexico in eligible professional, trader, investor, and intra-company transferee categories can work in Canada without an LMIA under the Canada-United States-Mexico Agreement.

Intra-Company Transfer (ICT)

Executives, senior managers, and specialized knowledge workers being transferred from a foreign branch to a Canadian office of the same multinational company may qualify without an LMIA.

Significant Benefit (C10/C11)

Foreign workers whose work provides a significant cultural, social, or economic benefit to Canada may qualify for an LMIA exemption. This includes certain researchers, artists, and highly specialized professionals.

Francophone Mobility (C16)

French-speaking foreign nationals in TEER 0, 1, 2, or 3 occupations can work anywhere in Canada outside Quebec without an LMIA under the Francophone Mobility program.

International Agreements (CETA, CPTPP)

Citizens of countries with trade agreements with Canada — including EU member states and CPTPP countries — may qualify for LMIA-exempt work permits in specific categories.

Reciprocal Employment

Positions that create reciprocal employment opportunities for Canadians abroad may qualify for an LMIA exemption.

Under the IMP, employers must submit an offer of employment through the IRCC Employer Portal and pay a $230 CAD employer compliance fee per worker. This fee is separate from LMIA processing fees and is charged per application — not per position.

How the LMIA Process Works

01

Eligibility Assessment

Asteco reviews the position, the wage, the work location, and the employer's situation to determine whether an LMIA is needed, which stream applies, and whether any LMIA-exempt pathways are available.

02

CMA & Cap Verification

For low-wage positions, Asteco verifies whether the work location is in a frozen CMA and whether the employer's current TFW proportion allows for additional hires.

03

Recruitment & Advertising

Asteco advises the employer on the required advertising methods, drafts the job advertisements, and tracks the recruitment timeline. For low-wage positions, the 8-week advertising period must be planned well in advance.

04

Application Preparation

Asteco prepares the complete LMIA application package — including all forms, supporting documents, recruitment evidence, wage information, and the Transition Plan (for high-wage positions).

05

Submission & Follow-Up

The application is submitted through the LMIA Online Portal. Asteco monitors the file and responds to any Service Canada requests for additional information.

06

Positive LMIA Issued

Once a positive LMIA is issued, the foreign worker can apply for a work permit using the LMIA number. Asteco can assist with the work permit application as well.

Employer Compliance Obligations

Employers who hire temporary foreign workers under the TFWP are subject to inspections by Service Canada — which may be announced or unannounced, on-site or virtual, and can take place up to 6 years after the worker begins employment. Non-compliance can result in monetary penalties, a ban from the program, and public disclosure of violations.

Your Obligations

Pay the TFW the wage specified in the LMIA and work permit — no reductions
Provide the same working conditions as set out in the LMIA and offer of employment
Keep all relevant records for 6 years, beginning on the first day of the period of employment for which the work permit was issued
Inform ESDC (through the Employer Contact Centre) right away of any changes or errors with an approved LMIA or in the TFW's working conditions
Never charge or recover the LMIA processing fee from the TFW
Make every effort to provide an abuse-free workplace
Not prevent the TFW from leaving their employment

Consequences of Non-Compliance

A warning
Administrative monetary penalties of up to $100,000 per violation, to a maximum of $1 million per year
A permanent ban from the Temporary Foreign Worker Program and the International Mobility Program for the most serious violations
Publication of your business name and address on IRCC's public list of employers found non-compliant
Suspension or revocation of previously issued LMIAs

How Asteco Can Help

LMIA rules change frequently. Working with a licensed RCIC ensures your application is prepared correctly, submitted at the right time, and compliant with all current requirements.

Full assessment of whether an LMIA is required or whether an LMIA-exempt pathway is available
Verification of the applicable stream (high-wage vs low-wage) and wage threshold for your province
CMA freeze verification and quarterly monitoring of low-wage processing status
Complete recruitment planning and advertising strategy — including youth-targeted recruitment (new April 2026 requirement)
Preparation and review of all application forms, supporting documents, and recruitment evidence
Transition Plan preparation for high-wage positions
LMIA Online Portal submission as your authorized representative
Monitoring and responding to Service Canada requests throughout processing
Work permit application for the foreign worker once a positive LMIA is issued
Compliance guidance to help employers meet all TFWP obligations

Disclaimer: LMIA requirements, wage thresholds, CMA freeze lists, and program rules are established by ESDC and are subject to change without notice. The CMA unemployment freeze list is updated quarterly — always verify current status at canada.ca before submitting an application. This page reflects program requirements as of October 9, 2026. This information is for general guidance only and does not constitute legal or immigration advice. Consult Asteco before making any LMIA-related decisions.

Quick Reference

Processing Fee$1,000/position
High-Wage ThresholdMedian + 20%
High-Wage Advertising4 weeks min
Low-Wage Advertising8 weeks min
Low-Wage Cap10% (20% select sectors)
IMP Employer Fee$230/worker
Next CMA UpdateJanuary 8, 2027
Get LMIA AssessmentBook a Free Consultation

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