The federal government announced $450 million in new funding to retrain workers affected by tariffs and trade disruptions, part of a broader $1.9-billion package aimed at stabilizing Canada’s workforce amid rising unemployment.
Secretary of State for Labour John Zerucelli unveiled the measures during a visit to the International Brotherhood of Electrical Workers in Mississauga on Friday. The initiatives target workers and small businesses struggling with tariff impacts as the national unemployment rate reached 7.1 per cent in August, according to the government.
The $450-million investment will flow through Labour Market Development Agreements over three years, delivered in partnership with provinces and territories. The training programs will focus on workers affected by tariffs and global market shifts, according to the announcement.
Extended EI benefits for laid-off workers
The government extended temporary employment insurance measures until April 11, 2026. Changes include waiving the one-week waiting period for approximately 700,000 claimants and suspending treatment of separation payments, which will support close to 175,000 additional claimants, according to the release.
Long-tenured workers will receive up to 20 extra weeks of income support, raising the maximum to 65 weeks. The government estimates this $1.6-billion investment over five years will support nearly 190,000 workers.
“Canadian workers are facing a global economy that is changing rapidly but that holds significant opportunity for our workforce and for our country,” Zerucelli said in the release.
Support for small and medium businesses
The government will expand the Regional Tariff Response Initiative to $1 billion over three years, offering flexible support terms and non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors.
A separate $382-million investment over five years will fund Workforce Alliances and a Sectoral Workforce Investment Fund. The initiative brings together government, employers, unions and industry groups to develop workforce strategies, according to the announcement.
Digital jobs platform planned
The government committed $50 million over five years to modernize Job Bank and create a new online training platform. The digital tool will connect workers to jobs and training resources more quickly, according to the release.
Job Bank currently advertises more than 100,000 jobs monthly and has 300,000 registered employers, the government said.
Employment and Families Minister Patty Hajdu said the investments equip workers “with the tools they need to succeed today, and the confidence to lead tomorrow.”
The government introduced temporary EI measures in March in response to tariffs on Canadian goods. Work-sharing program flexibilities announced earlier this year remain in place until March 2026 and have helped prevent more than 12,600 layoffs, including in manufacturing, according to the release.
A recent evaluation of Labour Market Development Agreements showed that each dollar invested in skills development generated $1.54 in social benefits per person, according to the government.
