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In many countries, employers hiring foreign nationals must first show that no suitable local worker is available for the job. This process is commonly called a Labour Market Test (LMT) or Labour Market Approval.
The purpose is simple: governments want to protect local employment while still allowing businesses to fill genuine skill shortages. Before offering a job to an overseas worker, companies may need to advertise the role locally and demonstrate that qualified domestic candidates could not be found.
However, this requirement varies by country, visa type, and skill level. Some high-skill or shortage occupations are fully exempt.
What Is a Labour Market Test (LMT)?
A Labour Market Test is a hiring safeguard where employers must:
• Advertise the job locally for a specific period
• Interview or consider local applicants
• Prove there is a genuine skills shortage
• Show that salary and conditions match local standards
• Provide evidence to immigration or labour authorities
Only after meeting these steps can the employer sponsor a foreign worker.
When Is It Usually Required?
Labour market checks commonly apply to:
• General or mid-skill jobs
• Temporary or seasonal work
• Employer-sponsored visas
• Roles without verified skill shortages
Governments use these checks to ensure that hiring foreign workers does not displace local employees.
When Is It NOT Required?
Many countries waive the requirement for:
• Highly skilled professionals
• Shortage occupation roles
• High-salary thresholds
• Intra-company transfers
• EU Blue Card or similar talent visas
• Researchers, academics, or specialists
These categories are seen as critical to economic growth, so recruitment is faster and less restricted.
How Different Countries Apply the Rule
United Kingdom
The UK previously required strict labour market advertising, but most Skilled Worker visa roles no longer require a formal labour market test. Instead, employers must meet sponsorship, salary, and skill thresholds.
Germany
Germany may require Federal Employment Agency (BA) approval, which checks working conditions and sometimes includes a priority check to ensure no local or EU worker is available. Some skilled roles are exempt.
Australia
Certain employer-sponsored visas require labour market testing, meaning employers must advertise positions before nominating foreign workers.
Canada
Most employers need a Labour Market Impact Assessment (LMIA) to prove hiring a foreign worker will not negatively affect Canadian workers, though high-skill streams may have exemptions.
Why Governments Use Labour Market Tests
These rules aim to:
• Protect domestic employment
• Prevent wage undercutting
• Ensure fair hiring practices
• Address genuine skill shortages only
• Balance migration with economic needs
They create accountability for employers while allowing legal foreign recruitment where necessary.
Key Takeaway for Employers and Workers
Companies are often required to prove local workers are unavailable — but not always. The requirement depends on the country, visa route, and job level. High-demand and specialized roles typically face fewer restrictions, while general positions are more strictly regulated.
Before applying for a work visa, always check the specific sponsorship rules to understand whether labour market testing applies.
Disclaimer
This article is for informational purposes only. Immigration and labour laws change frequently. Always consult official government guidance or licensed advisors before applying.
February 3, 2026
