Question Period Note: EMPLOYMENT INSURANCE (EI) SUPPORTS FOR WORKERS IMPACTED BY TARIFFS

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.

The Government is committed to protecting and supporting workers with a strong social safety net during these uncertain times.

Last year in March, we moved quickly to introduce temporary measures to improve access to Employment Insurance and the Work-Sharing program. These measures continue to make a difference with over 22,000 layoffs averted because of the Work-Sharing program since then and over 24,000 long-tenured workers accessing extra weeks of EI benefits.

We recently extended the three EI temporary special measures for an additional 6 months until October 10, 2026. The EI Work-Sharing temporary special measures have been extended to March 31, 2027.

We have also made investments in EI-funded skills training and employment assistance, which will help 92,000 workers to get back to work more quickly and help employers access the talent they need to Build Canada Strong.

The Government continues to defend Canadian interests as we navigate the new trading environment. We will continue to use every tool at our disposal to support affected employers and workers.

Temporary Employment Insurance Tariff-Response Measures

In March 2025, the Government of Canada established an Employment Insurance pilot project to test temporary measures to respond to major changes in economic conditions, providing additional income support and financial stability for workers impacted following the imposition and continued threat of tariffs. Measures being tested under this pilot project include:

Waiving the one-week Employment Insurance waiting period so claimants can receive benefits for their first week of unemployment, softening the shock of an income drop.

On September 5, 2025, the Government of Canada announced an extension of this measure by six months (investment of $418M over two years). A further six-month extension was announced on March 20, 2026. As a result, it will apply to claims with a benefit period that begins between March 30, 2025, and October 10, 2026. All 1.8 million regular, fishing, 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.

Suspending the rules around treatment of monies paid on separation, including severance pay, so that claimants can receive Employment Insurance benefits sooner, as they can start receiving benefits from when they are laid off and not have to wait until they have exhausted these monies.

On September 5, 2025, the Government of Canada announced an extension of this measure by six months (investment of $424M over two years). A further six-month extension was announced on March 20, 2026. As a result, this measure will apply to EI claims between March 30, 2025, and October 10, 2026, depending on either the beginning of their benefit period or when monies on separation deductions would begin. While it is still early to evaluate the full impact of this measure, it is estimated that as of May 1, 2026, approximately 426,000 claims have benefitted since March 30, 2025.

Providing 20 additional weeks of Employment Insurance benefits to long-tenured workers to provide them with more time to find a job similar to the one they have lost.

In October 2025, the Government of Canada implemented a new temporary measure that applies to claims with a benefit period that begins between June 15, 2025 and April 11, 2026 (investment of $1.6B over five years). On March 20, 2026, the Government announced an extension of this measure, expanding its duration beyond the initial implementation period to October 10, 2026.

The 20 extra weeks measure is expected to benefit approximately 190,000 long-tenured workers for claims that started between June 15, 2025, and October 10, 2026. As of May 24, 2026, approximately 35,000 long-tenured worker claims were paid at least one of the 20 extra weeks of regular benefits. This number is expected to increase with time, as more claimants reach the end of their original claim period.

For the purposes of this measure, long‑tenured workers are individuals who have participated in the workforce for many years but have made little use of EI regular or fishing benefits following job loss. These workers, including those in trade‑exposed sectors, may face unique re‑employment challenges, such as needing additional time to update their skills or search for work after many years with the same employer. They may also be more vulnerable to income declines and future job losses, particularly in a rapidly changing economy where industries are transitioning due to the impacts of tariffs. As a result, long‑tenured workers may require more time to find suitable employment or pursue upskilling opportunities to re‑enter the labour market.

To be considered a long-tenured worker, you must have received fewer than 36 weeks of regular or fishing benefits in the three years before the start of your claim and paid at least 30% of the annual maximum EI premiums in 7 of the last 10 years before the year your claim starts.

Adjusting the Employment Insurance regional unemployment rates up by one percentage point in all Employment Insurance regions (to a maximum of 13.1%) with no region seeing an unemployment rate of less than 7.1%, reducing the number of hours of insurable employment required to qualify for regular benefits to no higher than 630 hours and increasing the regular benefit entitlement by up to four additional weeks (expired October 11, 2025).

This measure applied to claims with a benefit period that began between April 6, 2025, and October 11, 2025.

As of March 31, 2026, 396,000 regular claims received at least one additional week of EI benefits and/or received a higher benefit rate, and 15,000 people became newly eligible for EI. Beneficiaries include approximately 10,000 claims made by workers in tariff impacted sectors (i.e. automotive, softwood lumber, steel and aluminum industries).

The measure has not been extended, as variations in EI unemployment rates have been gradual allowing the EI program time to adjust and continue to reflect local labour market conditions.

Work-Sharing

The Work-Sharing program helps employers and employees avoid layoffs when there is a decrease in business activity beyond the employer's control. The program provides income support for eligible employees who work a temporarily reduced work week.

Through Work-Sharing, employers can retain skilled workers and avoid the expensive process of recruiting and training new employees when their business returns to normal levels by employees working a reduced workweek instead of being laid off. It also helps employees maintain their skills and jobs by supplementing their wages with Work-Sharing benefits for the days they are not working.

The following temporary Work-Sharing flexibilities have been in place since March 7, 2025, and were extended until March 31, 2027, for businesses impacted by tariffs:

The maximum duration of a Work-Sharing agreement is extended from 38 weeks to up to 76 weeks.

The requirement to serve a cooling-off period between successive Work Sharing agreements is waived.

Employer eligibility is expanded to include: 

businesses that have been in operation in Canada for 1 year;

non-profit and charitable organizations experiencing a reduction in revenue levels as a direct or indirect result of the tariffs;

cyclical or seasonal employers; and,

employers experiencing a decrease in work activity of less than 10% and allowing utilization of Work-Sharing to exceed 60%.

Employee eligibility under the Program is expanded to include workers who are: 

not year-round, permanent, full-time or part-time employees, specifically seasonal or cyclical employees; and  

not necessarily needed to carry out the day-to-day functions of the business, but who are assisting in the employer’s recovery efforts.

Reporting requirements are simplified to focus on maintaining business viability in the face of tariffs (instead of a plan to return to normal business, as is normally required).

Work-Sharing applications have grown for the January 1, 2025 – May 2026 period reaching a total of nearly 2,400 applications, with approximately 76% of them related to tariffs.

Over that period, it is estimated that Work-Sharing has helped to avert an estimated 25,000 layoffs (tariff and non-tariff related agreements), while covering more than 66,000 employees.

On sector breakdown: Softwood lumber (165), Fabricated Metal Product Manufacturing (262), and Machinery Manufacturing (168) account for the highest number of tariff-related applications, mainly from Quebec and Ontario.

On November 26, 2025, the Prime Minister announced the new Worker Retention 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 Grant will increase income replacement for employees working reduced hours and on training, helping up to 26,000 Canadian workers, including those in sectors heavily impacted by tariffs such as autos, steel and lumber.

The Grant launched on February 17, 2026, and employers can apply online. 

EI-Funded Investments in Employment Assistance and Retraining

In summer 2025, the Government of Canada announced EI-funded investments in support of workers impacted by trade disruptions to provide them with career services, skills training, and re-employment supports (tailored to each sector’s needs) via provincial and territorial employment assistance networks:

On July 16, 2025, an investment of $70M was announced to provide training and income supports for up to 10,000 impacted steel sector workers.

On August 5, 2025, an investment of $50 million was announced, for the provision of upskilling, reskilling, and income supports for more than 6,000 affected softwood lumber workers.

On September 5, 2025, an additional investment of $450M over three years was announced, to retrain and upskill up to 50,000 more workers across Canada and across sectors.

On September 5, 2025, the Government of Canada also announced it will be creating new workforce alliances which will be focused on reskilling and upskilling Canadians for new job opportunities and significant improvements to Canada’s Job Bank which will more easily and quickly match Canadian workers with available jobs.

The Government of Canada currently provides $2.9 billion annually to provide training and employment assistance services via provincial and territorial employment assistance offices across Canada to help hundreds of thousands of Canadians upgrade their skills and find employment.

New Employment Insurance applicants are referred to local employment offices for customized training and employment services, informed by career development officers that have real-time labour market information and knowledge of local employment opportunities.

“Canadian workers are the foundation of our economic strength. By investing in skills, training, and resources, workers will be ready to adapt to today’s challenges and lead in tomorrow’s economy. When Canadian workers succeed, all of Canada benefits.”— The Hon. Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario (September 5, 2025)