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What is the Government doing to ensure Employment Insurance is supporting workers impacted by foreign tariffs? Major industrial disruptions and labour market transformations are becoming the new normal, including the introduction of tariffs from the United States (U.S.) and other trading partners. These tariffs are having significant impacts on the Canadian economy, including layoffs in all regions and sectors.
It is estimated that tens of thousands of jobs could be affected by a prolonged economic downturn, resulting in worker displacement and increased need for training, upskilling and employment assistance for workers in industries undergoing restructuring and transition.
The manufacturing industry is being significantly affected by the introduction of tariffs from the United States on Canadian goods, given that approximately 40% of jobs depend on Canadian exports to the United States. Amongst the most trade-exposed sectors are some pillars of the Canadian economy such as the automotive, steel, and softwood lumber industries.
The EI Work-Sharing program is a key tool and primary line of defence to help prevent layoffs by helping employers retain their employees and workers keep their job during a temporary downturn in business. In March 2025, the Government of Canada introduced temporary enhancements to facilitate access and expand the duration of Work-Sharing agreements. These measures have been extended until March 31, 2027.
In March 2025, the Government also introduced EI flexibilities to support workers affected by tariffs, including:
Waiving the one-week waiting period (ending October 10, 2026);
Suspending some EI rules around the treatment of monies on separation (ending October 10, 2026);
Making it easier to access benefits by adjusting regional unemployment rates so no worker needs more than 630 hours to qualify (no longer in place - ended October 11, 2025).
In summer 2025, additional funding was announced to provide EI-funded training opportunities to approximately 66,000 workers in the steel and softwood lumber sectors, as well as other tariff-impacted strategic industries via provincial and territorial training and employment assistance networks.
In October 2025, a new EI tariff measure was introduced that provides 20 extra weeks of income support for long-tenured workers.
In March 2026, the end date of the measures that waive the waiting period, suspend the treatment of monies on separation, and provide 20 extra weeks of income support was extended from April 11, 2026 to October 10, 2026.
On November 26, 2025, the Prime Minister announced a new Grant for eligible employers in all sectors who have an active Work-Sharing agreement and who commit to supporting training for their employees that are working reduced hours. This new measure will allow employers to offer a top-up to EI Work-Sharing benefits for employees participating in training on the days they are not working. This measure is expected to help up to 26,000 workers, including those in the steel, softwood lumber, automotive and other high-tariff exposed sectors. The new measure will support worker retention and income adequacy. The Grant launched on February 17, 2026 and employers can apply online.
As of May 25, 2026, the Grant has 33 applications in review or approved, covering around 390 workers.
The temporary EI measures introduced last year have already improved support for hundreds of thousands of workers. For example:
As of February 28 2026, all 1.8 million regular and special benefit claims established since March 30, 2025, were eligible for this measure, resulting in these claimants receiving additional income support at the start of their claim and improving their income stability;
396,000 claims have benefited from the additional supports provided by the temporary measure that adjusted the unemployment rate;
As of May 24, 2026, over 34,000 long-tenured worker claims were paid at least one of the extra 20 weeks of benefits;
From January 1, 2025 to May 23, 2026, 2,362 Work-Sharing applications have been received with approximately 76% being tariff-related. More than 1,600 tariff-related applications have been approved, helping to avert over 22,000 layoffs covering close to 59,000 employees.
The temporary measure that increased access to EI by adjusting the EI unemployment rates ended on October 11, 2025. Month-over-month variations in unemployment rates have been gradual allowing the EI program time to adjust and continue to reflect local labour market conditions, including in EI regions with high concentrations of workers in trade-exposed sectors. Employment and Social Development Canada continues to closely monitor EI unemployment rates and job losses to be alert to any developing access issues.