An LMIA (Labour Market Impact Assessment) is a decision from Employment and Social Development Canada (ESDC) that an employer needs before hiring most foreign workers. A positive LMIA shows there is a need for the worker and no Canadian or permanent resident is available for the job. The worker then uses it to apply for a work permit.
Why the NOC code matters in an LMIA
Every LMIA is for a specific position with a specific NOC 2021 code. ESDC uses the code to check:
- that the wage is at or above the prevailing wage for that occupation and region
- that the job ad on Job Bank and elsewhere describes the duties of that occupation
- which program stream and rules apply
If the duties in the job offer don't match the code, the LMIA can be refused, or the worker can run into trouble later when applying for PR. Employers should find the code from the job's real duties, the same way applicants do (see how to find a NOC code).
High-wage vs low-wage LMIA
The stream depends on the wage, not the TEER:
- High-wage stream: the wage is at or above the provincial or territorial median hourly wage. Employers usually need a transition plan.
- Low-wage stream: the wage is below the median. There are caps on the share of low-wage foreign workers and extra requirements for housing and transportation in some cases.
ESDC publishes the current median wages by province. They change, so always check before applying.
LMIA and TEER
TEER affects what happens next for the worker:
- A job in TEER 0, 1, 2 or 3 gives the worker experience that counts for Express Entry.
- TEER 4 and 5 jobs can still be filled with an LMIA, but the experience does not count for Express Entry. Provincial programs may still accept it.
LMIA-exempt work permits
Some work permits don't need an LMIA. They fall under the International Mobility Program and use exemption codes, for example for intra-company transferees, workers under free trade agreements, and some open work permits such as spousal open work permits. IRCC lists the current exemption codes on its website.
For employers hiring from abroad
nocfinder's "for my company" mode takes the duties from your job ad and suggests the NOC code and TEER to use in your Job Bank ad, LMIA and job offer, so the documents line up from the start.
Common questions
What does LMIA stand for?
Labour Market Impact Assessment. It is a document from Employment and Social Development Canada (ESDC) that lets an employer hire a foreign worker when no Canadian worker or permanent resident is available.
Does an LMIA need a NOC code?
Yes. The employer gives the NOC code for the position, and ESDC uses it to check wages, advertising and other requirements. The job duties must match that code.
What decides high-wage or low-wage LMIA?
The wage offered. If it is at or above the provincial or territorial median hourly wage, the job goes in the high-wage stream; if below, the low-wage stream. ESDC updates the median wages regularly.