LMIA Outcomes — Positive, Neutral & Negative
How Labour Market Impact Assessment decisions work — what each outcome means for you and your employer, and when you can work in Canada without an LMIA at all.
What is an LMIA — The Core Purpose
A Labour Market Impact Assessment (LMIA) is a document that an employer in Canada must obtain before hiring most Temporary Foreign Workers (TFW). It is issued by Employment and Social Development Canada (ESDC) / Service Canada and assesses whether hiring a foreign worker will have a positive, neutral, or negative impact on the Canadian labour market.
The philosophical basis for the LMIA is that Canadian employers should prioritize hiring available Canadians or permanent residents before turning to foreign workers. The LMIA process forces employers to demonstrate that they have genuinely advertised and recruited for the position in Canada, and that no suitable Canadian candidate was available or willing to fill the role at the prevailing wage.
Once ESDC issues a positive LMIA, the employer gives the worker the LMIA confirmation letter and number. The worker then uses this document — along with their employment contract, passport, and any other required documents — to apply for a Canadian work permit from IRCC.
The Three LMIA Outcomes — Detailed Explanation
| Outcome | Meaning | Effect on Work Permit |
|---|---|---|
| Positive LMIA | ESDC determined that hiring the specific foreign worker will have a positive impact on the Canadian labour market — the employer demonstrated they could not find a qualified Canadian for the role. The LMIA specifically names the foreign worker and the position. | Worker can use the positive LMIA letter + number to apply for a closed (employer-specific) work permit from IRCC. The work permit is tied to that specific employer and position. Also grants 50 CRS Express Entry points (for TEER 0-2 jobs) or 0 additional CRS points (for TEER 3 jobs). |
| Neutral LMIA | Rare outcome — ESDC determined that hiring the foreign worker will have neither a clearly positive nor negative impact on the labour market. Sometimes used for specific cultural or artistic roles. The most common practical "neutral" scenario is where ESDC approves the LMIA but does not make a definitive positive endorsement. | Generally still allows the worker to obtain a work permit (if the LMIA is not refused), but may result in additional scrutiny. In practice, most LMIAs are either positive or negative — true "neutral" outcomes are uncommon. |
| Negative LMIA (Refused) | ESDC determined that hiring the foreign worker would have a negative impact on the Canadian labour market. Common reasons: (1) The employer's recruitment efforts were insufficient or not genuine, (2) The wage offered is below prevailing wage, (3) ESDC found qualified Canadians were available and not hired, (4) The employer has a poor compliance history with previous TFW hires. | The worker cannot receive a work permit based on this refused LMIA. The employer may reapply with better documentation, but there is no formal "appeal" of an LMIA refusal. A refused LMIA for a specific position does not bar other LMIA applications by the same employer for different positions or different workers. |
What Employers Must Do for a Positive LMIA
To obtain a positive LMIA, the employer must demonstrate all of the following:
- Genuine Recruitment Efforts: Must advertise the position for a minimum of 4 consecutive weeks in at least 3 different recruitment methods specified by ESDC, including Canada's national Job Bank (mandatory). Must document all applications received from Canadians, interview outcomes, and reasons why each Canadian applicant was not hired.
- Prevailing Wage: The wage offered must be at or above the median wage for that occupation in that province/region, according to the Statistics Canada wage data that ESDC uses. Paying below the prevailing wage is a common reason for LMIA refusal. High-wage positions (above provincial median) have slightly different rules than low-wage positions (below provincial median).
- Employer Compliance: The employer must not have been found non-compliant in previous TFWP inspections. Employers with compliance violations (e.g., not paying the committed wage, housing violations for SAWP/AHW workers) can be banned from the LMIA process for 2 years.
- Application Fee: Employers pay a non-refundable LMIA processing fee of $1,000 CAD per position. This is among the highest work authorization fees in the world and is paid even if the LMIA is refused.
- Business Legitimacy: The employer must operate a legitimate Canadian business, be registered, and have a genuine need for the position (e.g., existing clients, contracts, or production requirements that justify the hire).
LMIA Fees, Processing Times & Streams
| LMIA Stream | Processing Time (2026 est.) | Employer Fee | Notes |
|---|---|---|---|
| High-Wage Positions (above provincial median) | Standard: 3–5 months | $1,000/position | Additional Transition Plan required showing how employer will reduce reliance on TFWs over time |
| Low-Wage Positions (below provincial median) | Standard: 3–5 months | $1,000/position | Employer cap: no more than 20% of workforce can be low-wage TFWs (or 10% in high-unemployment regions) |
| Agriculture (SAWP) | Faster: 2–3 months | $1,000/position | Bilateral agreement streamlines the process |
| Global Talent Stream (GTS) | 2-week processing | $1,000/position | For highly-skilled tech workers; IRCC also processes work permit in 2 weeks |
| Caregiver | 3–5 months | $1,000/position | Special rules apply — see Caregiver page |
LMIA-Exempt Work Permits — When You Don't Need One
Many workers can come to Canada and work without an LMIA, under international agreements or specific exemptions:
| Exemption Category | Examples | IRCC Work Permit Category Code |
|---|---|---|
| CUSMA / USMCA (Canada-US-Mexico Agreement) | US and Mexican citizens in designated professional categories (accountants, engineers, scientists, lawyers, etc.) with a Canadian job offer | T11 (Professional); T12 (Intra-Company Transferees); T14 (Traders/Investors) |
| Intra-Company Transfers (ICT) | Executives, senior managers, or workers with specialized knowledge being transferred from a foreign affiliated company to a Canadian branch, subsidiary, or parent | C12 (ICT — Executive/Senior Manager); C63 (ICT — Specialized Knowledge) |
| International Agreements (GATS, CETA, CPTPP) | Service suppliers, investors, and certain professionals from treaty countries (EU, Japan, UK, Australia, etc.) under Canada's various trade agreements | Multiple: C10 (GATS), C11 (CPTPP), etc. |
| Significant Benefit to Canada | International athletes, performers, coaches, religious workers, academics | C10 (Significant Benefit) |
| Open Work Permits | Spouses of skilled foreign workers, PGWP holders, refugee claimants, bridging open work permit holders | A70 (Spouse of Skilled Worker); C41 (PGWP); etc. |
• ESDC — Labour Market Impact Assessment overview: canada.ca/lmia-overview
• IRCC — LMIA Exemptions (work permit without an LMIA): canada.ca/work-permit-lmia-exempt
• ESDC — Global Talent Stream (GTS — 2-week processing): canada.ca/global-talent-stream
• IRCC — CUSMA Work Permit (US/Mexico Professionals): canada.ca/cusma-work-permit