Labour Market Testing (LMT) Step-by-Step Guide

Introduction

Labour Market Testing (LMT) is a mandatory process in many employer-sponsored visa programs. Its purpose is to prove that an employer has made genuine efforts to recruit local workers before offering a position to a foreign national. Immigration authorities use LMT to protect domestic employment opportunities and ensure fair hiring practices.

Failure to conduct LMT correctly can result in visa refusal.


Step 1: Understand LMT Requirements

Before starting, employers must review immigration rules relevant to their visa category. Requirements typically include:

  • Approved advertising platforms

  • Minimum advertising duration

  • Required information in job ads

  • Evidence retention period

Each country or visa stream may have slightly different rules.


Step 2: Identify the Correct Occupation

The job role must match an approved occupation list. Employers should ensure:

  • Job title aligns with official occupation codes

  • Duties reflect industry standards

  • Skill level matches visa requirements

Incorrect occupation selection is a common LMT failure.


Step 3: Prepare the Job Advertisement

The job advertisement must be clear, accurate, and compliant. It should include:

  • Job title

  • Key duties and responsibilities

  • Required qualifications and experience

  • Employment type (full-time/part-time)

  • Salary or salary range (if required)

Misleading or vague ads may invalidate LMT.


Step 4: Advertise on Approved Platforms

Employers must advertise the position on approved job platforms, such as:

  • Government job portals

  • National recruitment websites

  • Industry-specific platforms

Ads usually must run for a minimum period (e.g., 14–28 days).


Step 5: Collect and Record Applications

During the advertising period, employers must:

  • Record all applications received

  • Assess candidates fairly

  • Maintain shortlisting records

Documentation is critical for later review.


Step 6: Assess Local Candidates

Employers must genuinely assess local applicants and document:

  • Why candidates were unsuitable

  • Skills gaps or experience deficiencies

  • Interview outcomes (if conducted)

Unjustified rejection of local workers can lead to refusal.


Step 7: Compile Evidence of LMT

Employers should compile all required evidence, including:

  • Copies/screenshots of job advertisements

  • Advertising dates and platform details

  • Number of applications received

  • Reasons for not hiring local candidates

This evidence forms the core of the LMT report.


Step 8: Prepare the Labour Market Testing Report

The LMT report should be structured and professional, covering:

  • Employer details

  • Occupation and role description

  • Advertising methods and duration

  • Summary of recruitment results

  • Conclusion justifying foreign worker sponsorship

A clear report strengthens the visa application.


Step 9: Submit LMT With Visa Application

The completed LMT report and supporting documents must be submitted with:

  • Nomination application

  • Visa sponsorship application

Incomplete or missing LMT evidence may cause delays or rejection.


Step 10: Retain Records for Compliance

Even after visa approval, employers must retain LMT records for compliance audits. This protects employers in case of:

  • Immigration inspections

  • Visa renewals

  • Compliance investigations


Common Mistakes to Avoid

  • Advertising for too short a period

  • Using unapproved platforms

  • Rejecting local candidates without evidence

  • Inconsistent job descriptions

  • Poor documentation


Conclusion

Labour Market Testing is a critical compliance step in employer-sponsored visa programs. By following a structured, step-by-step approach, employers can demonstrate genuine recruitment efforts, protect local employment, and significantly improve visa approval chances.

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