The federal government has extended temporary Employment Insurance measures until October to help more than 290,000 Canadian workers affected by U.S. tariffs, as trade negotiations continue with uncertain outcomes.
Employment Minister Patty Hajdu and Labour Secretary of State John Zerucelli announced Thursday that the government will extend adjusted regional unemployment rates until Oct. 11, allowing workers to qualify for EI benefits with fewer hours and receive up to four additional weeks of support.
Reduced qualification requirements continue
Under the extended measures, workers need no more than 630 hours to qualify for regular EI benefits, down from higher thresholds that previously applied in regions with lower unemployment rates. The adjustment increases weeks of entitlement by up to four additional weeks depending on the region.
The extension affects one of three temporary EI measures introduced in March as tariffs imposed by the United States and other trading partners continue to impact Canadian businesses and workers across multiple sectors.
“Workers are the backbone of the economy, and in the face of tariffs, we are putting forward measures that make a meaningful difference to their lives,” said Hajdu. “These measures will help workers access the income support they need in the current economic uncertainty.”
Other support measures remain in place
Two other temporary EI measures introduced in March will continue until their scheduled expiry date of Oct. 11. These include waiving the one-week waiting period for all types of EI claims and suspending requirements that workers use up severance pay before receiving benefits.
The waiting period waiver allows workers to receive benefits immediately upon job loss, helping them adjust more quickly to reduced income. The severance pay suspension means workers can start collecting EI benefits without having to exhaust separation packages first.
Work-sharing program sees increased uptake
Alongside the EI changes, the government expanded the Work-Sharing Program to help businesses avoid layoffs by allowing employees to work reduced hours while receiving partial EI benefits to supplement their wages.
“Unjustified tariffs are hurting Canadians, but we’re standing with workers,” said Zerucelli. “This extension ensures continued income support as we push to end harmful trade barriers and protect good jobs across the country.”
As of late June, Service Canada has signed more than 700 Work-Sharing agreements covering almost 27,200 workers and helping to prevent nearly 10,200 layoffs.
Trade negotiations ongoing
The government continues negotiations with the United States on broader trading arrangements while providing income support to affected workers. The measures come as various sectors face uncertainty from tariffs on Canadian goods, affecting both employers and employees across the country. The announcement comes in the wake of yesterday’s announcement by U.S. President Donald Trump that he was planning a 35 per cent tariff on Canadian goods.
The regional unemployment rate adjustments increase rates by one percentage point in all EI regions, up to a maximum of 13.1 per cent, with no region seeing rates below 7.1 per cent. This technical change makes it easier for workers to qualify for benefits and receive them for longer periods.
The extension provides continuity for workers and employers who have been navigating economic uncertainty since the tariff measures began affecting Canadian businesses earlier this year.
