Canada extends worker support benefits through October 2026 to counter US tariffs

Ottawa on Friday announced a six-month extension of temporary Employment Insurance measures, ensuring continued income support for workers impacted by tariff-related economic pressures.

The announcement was made by Patty Hajdu, Minister of Jobs and Families, who said the move reflects the government’s focus on strengthening economic resilience amid global uncertainty.

“The EI programme remains a critical safety net, designed to be there when Canadians need it most,” Hajdu said. “As we navigate uncertain times, these measures will help workers access the income support they need.”

Originally introduced in March 2025, the measures were designed to improve access to EI for workers whose jobs were affected by shifting trade dynamics, particularly U.S. tariffs.

Under the extension, the government will continue to waive the one-week waiting period for EI claims, allowing workers to receive benefits immediately.

It will also maintain provisions that enable claimants to access EI without first exhausting severance or separation pay. In addition, long-tenured workers will remain eligible for up to 20 additional weeks of benefits.

Officials said the extension will ensure “reliable and timely” support for workers across sectors and regions facing economic disruptions.

According to government estimates, approximately 632,000 claims are expected to benefit from the waived waiting period, while 136,000 claims will be supported by the suspension of separation payment rules.

A further 43,500 long-tenured workers are expected to receive extended benefits.

The EI measures are part of a broader federal response to global trade volatility. The government has also extended flexibilities under the Work-Sharing Program until March 2027, allowing businesses to reduce hours instead of laying off employees.

Since early 2025, about 1,500 applications have been approved, covering more than 54,000 workers and preventing an estimated 20,000 layoffs.

In addition, a Worker Retention Grant, announced earlier by Mark Carney, allows employers participating in work-sharing agreements to top up workers’ incomes while they undergo training, covering up to 70% of lost wages.

The government is also rolling out six Workforce Alliances focused on priority sectors, including housing, advanced manufacturing, energy, mining and the care economy, aimed at strengthening long-term labour market resilience.

These initiatives are backed by a $570 million investment through the Canada–Ontario Workforce Tariff Response and other federal programmes, funded through EI contributions by workers and employers.

Officials said the combined measures are intended to help workers remain employed, upgrade skills and transition into new opportunities as industries adapt to changing global conditions.