Reviewed by a Regulated Canadian Immigration Consultant (licensed by the CICC)Last updated:
Short answer
To hire most foreign workers, an Ontario employer needs a positive Labour Market Impact Assessment (LMIA) from Employment and Social Development Canada (ESDC). Jobs paying $36.92 an hour or more in Ontario go through the high-wage stream; lower-paid jobs go through the low-wage stream, which ESDC generally refuses to process in cities like Toronto where unemployment is 6% or higher.
High-wage or low-wage: which stream?
ESDC compares the wage you offer with the provincial threshold, which is the median hourly wage plus 20%. For LMIAs received from July 17, 2026, Ontario’s threshold is $36.92 an hour.
You must also pay at least the prevailing wage for that occupation and region, which can be higher than the threshold.
| High-wage stream | Low-wage stream | |
|---|---|---|
| Ontario wage | $36.92/hour or more | Below $36.92/hour |
| Extra requirement | Transition plan to reduce reliance on foreign workers | Cap on the share of low-wage foreign workers, plus housing and transport rules for some jobs |
| Toronto and other CMAs at 6%+ unemployment | Can be processed | Generally refused, unless the job is exempt |
The Toronto low-wage rule
Since September 26, 2024, ESDC refuses to process most low-wage LMIAs for jobs in census metropolitan areas (CMAs) with unemployment of 6% or higher. The list is updated every three months, and Toronto has been above 6% throughout 2026.
Some sectors are exempt, such as primary agriculture, construction, food manufacturing and certain health care roles. Raising the wage to the high-wage threshold is the other common route.
Steps for employers
- Confirm the occupation (NOC code), duties, wage and work location.
- Advertise for at least four weeks within the three months before applying, on Job Bank and at least two other methods.
- Review Canadian applicants fairly and keep records of why they were not hired.
- Prepare business documents showing the company is real and can pay the wage.
- Apply online and pay the $1,000 processing fee for each position.
- After approval, the worker applies to IRCC for a work permit with the LMIA.
Common reasons LMIAs are refused
- Wage below the prevailing wage for the region
- Advertising that is too short, too vague or missing required details
- Job duties that do not match the NOC or the candidate’s experience
- Weak proof that the business is active and can sustain the job
- Past non-compliance with the Temporary Foreign Worker Program
Frequently asked questions
Can I hire my worker without an LMIA?
Sometimes. Intra-company transferees, CUSMA professionals, some francophone hires and workers with open work permits do not need one. We check exemptions first.
How long does an LMIA take?
It depends on the stream and changes often. ESDC publishes current processing times; high-wage files have taken several months in 2026.
Can the employer charge the worker for the LMIA?
No. Employers cannot recover LMIA fees or recruitment costs from the worker.
Information on this site is general and is not legal advice. We never guarantee approvals. Only Immigration, Refugees and Citizenship Canada (IRCC) makes decisions on applications.