Canada Launches Workforce Retention and Retraining Program to Counter Tariff-Driven Layoffs
The Government of Canada launched the Workforce Retention and Retraining Program on October 22, 2026, offering up to $1,000 per employee for training and expanded work-sharing support. The initiative is expected to prevent 20,000 layoffs and benefit up to 66,000 workers amid ongoing economic challenges caused by tariffs.
On October 22, 2026, the Government of Canada officially launched the Workforce Retention and Retraining Program (WRRP), making an online application form available to employers facing economic challenges, particularly those caused by tariffs. 
The WRRP is part of a $3.5 billion investment in Rapid Response Supports for Workers and Employers announced by the federal government in August 2026. The program is expected to help prevent an estimated 20,000 layoffs and support more than 2,300 employers. Up to 66,000 workers are expected to benefit from the WRRP, with approximately 50,000 receiving retraining supports.
Under the program, eligible employers can receive up to $1,000 per participating employee to cover training and administration costs. To qualify, employers must commit to providing training opportunities for at least 40 per cent of the agreement period. Employees participating in the WRRP can maintain incomes closer to normal levels through Employment Insurance (EI) Work-Sharing benefits combined with an income top-up while working reduced hours. The program allows for successive agreements, temporarily permitting up to 152 cumulative weeks of support for employers and employees facing tariff disruptions.
Employers currently participating in Work-Sharing or receiving Worker Retention Grant support will be seamlessly transitioned to the WRRP without needing to apply. Since January 2025, temporary flexibilities to the Work-Sharing Program helped avert around 25,000 layoffs through approximately 1,600 agreements.
Alongside the WRRP launch, temporary Employment Insurance measures have been extended by up to one year. These extensions include waiving the standard one-week waiting period and providing an extra 20 weeks of EI for long-tenured workers. The rule on monies on separation has also been temporarily suspended, allowing workers to access EI benefits immediately after job loss even if they receive severance or vacation pay. Additionally, a new EI measure simplifies rules on reasons for separation for one year, ensuring workers who recently changed jobs are not penalized when accessing EI if their most recent job loss was not their fault.
In related efforts to address global trade pressures, the Regional Tariff Response Initiative (RTRI) provides support to small and medium-sized businesses affected by tariffs to strengthen competitiveness and address liquidity pressures.