My working holiday visa is going to expire in October and i am looking at ways to extend it somehow. My age is now 32 so i dont qualify for the WHP anymore. Or do i? If i was to look into having my current job sponsor me how would i go about it? I dont really understand how to apply for a LMO and how it would work. Do i wait for my employer or can i start the process for them?

You would have to check with International Experience Canada regarding continued eligibility for youth mobility programs. If you are not eligible, then the Labour Market Opinion would most likely be the necessary first step. The employer would need to initiate this, and may need to undertake a satisfactory recruiting effort prior to doing so.