LMIA Canada Explained: How Employer-Sponsored Work Permits Work in 2026

A Labour Market Impact Assessment (LMIA) is a decision from Employment and Social Development Canada (ESDC) confirming that an employer can hire a foreign worker because no Canadian or permanent resident is available for the job. The employer applies and pays $1,000 per position; with a positive LMIA, the worker can apply to IRCC for an employer-specific work permit. In 2026, which stream applies depends on the wage, and most low-wage jobs in larger cities cannot be processed at all right now.

Key points

• The employer applies for the LMIA and pays a $1,000 fee per position. The worker cannot be charged.
• Jobs are high-wage or low-wage based on the provincial median wage plus 20%. New thresholds took effect July 17, 2026.
• Low-wage LMIAs are not processed in census metropolitan areas (CMAs) with unemployment of 6% or more. The current list runs October 9, 2026 to January 7, 2027.
• Construction, food manufacturing, hospitals, nursing care and primary agriculture are among the exempt sectors.
• A positive LMIA leads to a work permit ($155), not permanent residence.

How the LMIA process works

1. The employer recruits in Canada first. ESDC requires advertising and other recruitment activities to show that no Canadian or permanent resident is available.
2. The employer applies to ESDC/Service Canada and pays the $1,000 processing fee per position.
3. ESDC assesses the job: wage, working conditions, recruitment effort, and the likely effect on Canadian workers.
4. ESDC issues a positive or negative LMIA.
5. The worker applies to IRCC for a work permit, using the positive LMIA and a job offer.
6. The worker enters Canada (or changes status inside Canada) and starts work for that employer.

High-wage vs low-wage stream

The stream depends on the wage the employer offers. ESDC compares it with a threshold equal to the provincial or territorial median hourly wage plus 20%. If the wage is at or above the threshold, the job goes in the high-wage stream; if below, the low-wage stream.

Thresholds from July 17, 2026

Source: ESDC wage page, updated October 7, 2026. Hourly, for LMIA applications received on or after July 17, 2026.

Province or territory	Threshold	Previous (June 27, 2025 to July 16, 2026)
Alberta	$37.50	$36.00
British Columbia	$38.40	$36.60
Manitoba	$31.33	$30.16
New Brunswick	$31.73	$30.00
Newfoundland and Labrador	$33.60	$32.40
Northwest Territories	$48.00	$48.00
Nova Scotia	$31.96	$30.00
Nunavut	$45.00	$42.00
Ontario	$36.92	$36.00
Prince Edward Island	$31.20	$30.00
Quebec	$36.00	$34.62
Saskatchewan	$34.62	$33.60
Yukon	$45.60	$44.40

ESDC warns that raising a wage just to reach the high-wage stream does not qualify the job. The wage must match the prevailing wage for that occupation and location, and be comparable to what Canadians in the same job earn.

Key differences between the streams

	High-wage	Low-wage
Fee	$1,000 per position	$1,000 per position
Job Bank ad	At least 4 consecutive weeks within the 3 months before applying	At least 8 consecutive weeks within the 3 months before applying
Other recruitment	At least 2 more methods, one national in scope	At least 2 more methods, each reaching a different underrepresented group, plus youth
Transition plan	Required	Not required
Cap on low-wage foreign workers	No	Yes: 10% of workers at the location (20% in some sectors)
Transportation and housing	See ESDC high-wage page	Employer pays round-trip travel and must ensure suitable, affordable housing is available
6% unemployment refusal	Does not apply	Applies

Sources: ESDC high-wage and low-wage requirement pages, checked October 2026.

In both streams, at least one recruitment activity must continue until ESDC makes a decision, and employers must keep records for six years. Where provincial health coverage does not apply from day one, low-wage employers must provide private emergency health insurance.

The 6% rule: where low-wage LMIAs are refused

Since September 26, 2024, Service Canada has refused to process low-wage LMIA applications for jobs located in a CMA with an unemployment rate of 6% or higher. ESDC updates the list every quarter.

For applications submitted from October 9, 2026 to January 7, 2027, the ESDC refusal page lists these CMAs:

Low-wage LMIAs refused (6% or higher): St. John’s, Halifax, Moncton, Fredericton, Montréal, Ottawa-Gatineau, Kingston, Belleville-Quinte West, Peterborough, Oshawa, Toronto, Hamilton, St. Catharines-Niagara, Kitchener-Cambridge-Waterloo, Brantford, Guelph, London, Windsor, Barrie, Greater Sudbury, Regina, Saskatoon, Lethbridge, Calgary, Red Deer, Edmonton, Kelowna, Abbotsford-Mission, Vancouver and Nanaimo.

Still processed (below 6%): Saint John, Saguenay, Québec, Sherbrooke, Trois-Rivières, Drummondville, Thunder Bay, Winnipeg, Kamloops, Chilliwack and Victoria.

Jobs outside any CMA, including those in smaller census agglomerations, remain eligible. Employers check the location by postal code. The next update is due January 8, 2027.

Exemptions from the 6% rule

ESDC still processes low-wage LMIAs in high-unemployment CMAs for:

• Primary agriculture occupations
• Construction (NAICS 23)
• Food manufacturing (NAICS 311)
• Hospitals (NAICS 622)
• Nursing and residential care facilities (NAICS 623)
• Certain in-home caregiver positions in private households (with extra conditions in Quebec)
• LMIAs supporting permanent residence only, with no work permit
• Truly temporary or highly mobile jobs of generally 120 days or less, with a written exemption request

ESDC also applies a separate temporary measure to certain low-wage positions in Montréal and Laval, described on its Quebec hiring page.

The worker’s side: getting the work permit

Once the employer has a positive LMIA, the worker applies to IRCC for an employer-specific work permit. As of October 2026, the work permit fee is $155, plus $85 for biometrics if required (IRCC fee list). The permit is tied to that employer, job and location. Changing employers usually means a new LMIA and a new work permit.

Workers should know that the employer cannot charge them for the LMIA fee or recover recruitment costs from them. Low-wage employers must also pay return transportation and cannot recover that cost from the worker.

LMIA and permanent residence

Job offers no longer add points under Express Entry’s Comprehensive Ranking System (that change took effect March 25, 2025), but Canadian work experience gained on an LMIA-based permit can still help you qualify for the Canadian Experience Class or a provincial nominee program. See our guide to the Canadian Experience Class and the provincial nominee program.

Watch out for LMIA fraud

Because a job offer with an LMIA is valuable, some people sell fake job offers or charge workers for LMIAs. Employers are not allowed to recover the LMIA fee from workers. Be wary of anyone asking you to pay for a job offer or an LMIA, and verify employers before sending money or documents.

When to get professional help

LMIA applications are detailed, and a negative decision means the $1,000 fee is not refunded. Employers and workers with complex cases should consult a regulated Canadian immigration consultant (RCIC) or lawyer. This article is general information, not legal advice.

What to do next

1. Employers: check your province’s threshold, then confirm whether your work location is on the current refusal list.
2. Workers: confirm the job offer is genuine and that you are not being asked to pay for the LMIA.
3. If you are a recent graduate, compare an LMIA job with your options under the PGWP.
4. Follow quarterly list changes on our updates page and the Canada hub.