Canada launches workforce retention program for employers facing tariff pressures

Traders Union
All News
Economic Data
Canada workforce retention program

Highlights

Canada launches Workforce Retention and Retraining Program offering up to C$1,000 per employee for training as part of a C$3.5 billion package.
Eligible employers gain flexibility in work scheduling and can extend support for up to 152 weeks, with employees accessing income top-ups and EI Work-Sharing benefits.
Ottawa extends temporary Employment Insurance measures by up to one year, including waiving waiting periods and adding 20 weeks of EI for long-tenured workers.

Program rollout and employer support

As reported by Government of Canada, citing the Government of Canada, Jobs and Families Minister Patty Hajdu has launched an online application form for the Workforce Retention and Retraining Program, part of a C$3.5 billion Rapid Response Supports package unveiled in August for workers and employers facing economic challenges.

The program is designed to help employers keep staff on payroll, avoid layoffs and provide training as market conditions shift. Eligible employers can receive up to C$1,000 per participating employee to cover training and administration costs, while choosing training suited to workplace needs, including technical instruction, digital and foundational skills, peer-to-peer learning and on-the-job training.

Eligible employees can maintain income closer to normal levels while working reduced hours through a combination of Employment Insurance Work-Sharing benefits and an income top-up linked to employer-provided training. The program also allows more flexible scheduling of work hours during tariff-related disruptions and temporarily removes the equal sharing of work requirement, while successive agreements can extend support up to 152 cumulative weeks.

Labour market impact and EI measures

The WRRP is open to businesses across all sectors that need to transform, retool or diversify, extending its reach beyond industries directly exposed to tariffs. The federal government says the measure is intended to help companies adapt to changing demand, pursue new opportunities and remain competitive while preserving skilled labour.

Ottawa is also extending temporary Employment Insurance measures by up to one year to keep support flowing to affected workers. Those steps include waiving the one-week waiting period, adding 20 weeks of EI for long-tenured workers and temporarily suspending rules on monies on separation so workers can access benefits immediately after losing a job, even if they receive severance or vacation pay.

Together, the retention program and EI changes form part of a broader federal response to economic uncertainty. The government says it will continue working with employers, workers and communities to protect jobs and strengthen the skilled workforce needed for future growth.

In our earlier article on rising U.S. toy prices ahead of the holidays, we explained how tariffs on Chinese goods and higher energy, shipping, and raw-material costs were pushing retail prices up and squeezing manufacturers’ margins. We also noted that even when tariff rates ease, shelf prices can stay elevated because earlier, higher-cost inventories and ongoing logistics disruptions keep feeding through to consumer costs.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.