Hi,
So, let me make sure I am with you.
If I can get an LMO from a Canadian employer I can move and take up that job while my visa paperwork is being processed?
The LMO needed as a job offer for the skilled worker program is the same as the LMO needed for a work permit. Therefore, if you get the LMO, you can use it to apply for a work permit or to apply for your PR or to apply for both. In order to get a work permit, as a visa exempt individual, you only need to arrive in Canada with your LMO, passport and your $150 to pay for your work permit processing fee and you get it instantly and then you can start working. You may not work without a work permit, even if you have an LMO.
Or
I can look at the International Experience Visa which could get me 2 years in Canada but my family wouldn't qualify for health insurance or free schools?
I think it is a year and then you must apply again or something like that but yes, you would have to get your visa, your spouse would have to apply for their visa and the child would be under visitor status and you would have to apply for an extension for your child after 6 months and there is no guarantee that your child would be allowed to enroll in school without paying a few thousand $ for tuition. The program requires you to buy your own health insurance before you go. However, many say that they have been allowed sign up for health care after arriving in Canada. Your child would probably be able to get health care as your dependent if you are. Still, no guarantees. This is a visa meant for young people who want to work and travel and not really meant for families.
Would you recommend using a recruitment agency in order to find employers who might consider LMO?
You can try but be careful if they start wanting a lot of money from you. Of course they do need to make money but in many provinces, it's against the law to bill the employee for getting them a job. They can however bill employers who come to them and they can bill employees for filling out forms, to Canadianize your CV or something like that. However, there are a lot of scammers around. There have been people who have shelled out thousands of $ for an LMO which turned out to be a fake if they ever got it and the agency turned out not to have an office at the address listed and otherwise be untracable and maybe not even located in Canada at all.
I would suggest that you rather try to look on your own.