Employers
year-round business operating in Canada for at least 2 years (private business, publicly held company, or certain non-profits; public sector and Crown corporations are not eligible)
Services
Work-Sharing Program + Workforce Tariff Response Funds
Federal tariff-response workforce supports: the EI Work-Sharing Program (avoids layoffs during tariff-driven slowdowns, special measures extended to March 31, 2027), the new Workforce Retention and Retraining Program (up to $1,000 per participant for employer training and administration), and the $570M Workforce Tariff Response delivered with provinces to retrain up to 66,000 workers in tariff-hit industries.
Overview
Federal tariff-response workforce supports: the EI Work-Sharing Program (avoids layoffs during tariff-driven slowdowns, special measures extended to March 31, 2027), the new Workforce Retention and Retraining Program (up to $1,000 per participant for employer training and administration), and the $570M Workforce Tariff Response delivered with provinces to retrain up to 66,000 workers in tariff-hit industries.
Key numbers
| Item | Value |
|---|---|
| Instrument | program |
| Level | federal |
| Region | Canada |
| Administrator | Employment and Social Development Canada (ESDC) / Service Canada, with provincial delivery partners |
| Budget | $570,000,000 |
| Intake status | Ongoing; Work-Sharing tariff special measures run March 6, 2026 to March 31, 2027 |
| Non-US bias | Targets tariff-hit sectors (steel, softwood lumber, auto) to retain and retrain workers |
Eligibility
Decrease in overall work activity of at least 10% in the last 6 months, caused by factors beyond employer control (e.g. tariffs, lost contracts, unexpected market changes, supply issues)
Employers must have recovery measures to return employees to normal staffing levels and regular hours by the end of the agreement
Employees
year-round, permanent, full-time or part-time core staff, eligible for EI benefits, agreeing to reduce hours by the same percentage and share available work
Workforce Tariff Response targets workers and employers in sectors hit by tariffs (steel, softwood lumber, automotive, and other directly or indirectly tariff-affected sectors)
What it covers
EI Work-Sharing benefits for employees working reduced hours instead of being laid off (tariff special measures extended March 6, 2026 to March 31, 2027)
Workforce Retention and Retraining Program (announced Aug 2026)
combines the EI Work-Sharing program and Worker Retention Grant into one streamlined program; employers eligible for up to $1,000 per participant for training and administrative costs
Worker Retention Grant
additional income support for EI-eligible employees in approved and implemented Work-Sharing agreements where employers commit to training
Workforce Tariff Response
skills training, retraining, upskilling, and employment services delivered through province-delivered programs funded by EI-based Labour Market Development Agreements
Market and diversification rules
Work-Sharing tariff special measures run from March 6, 2026 to March 31, 2027
Workforce Tariff Response funds flow through bilateral federal-provincial agreements (e.g. Canada-Ontario $228.8M for up to 27,000 workers; Canada-Alberta $68.5M for more than 7,800 workers; Canada-Nova Scotia)
Workforce Tariff Response is a time-limited investment (fiscal years 2025-26 to 2027-28, reporting to 2029-30)
How to apply
Work-Sharing
employers apply to Service Canada with employer, employee, and union representatives, completing the application and Attachment A
Check the Work-Sharing tariff special measures for extended flexibilities before applying
Worker Retention Grant
apply once a Work-Sharing agreement is approved and implemented, committing to employee training opportunities
Workforce Tariff Response
apply through provincial delivery partners and employment/training service providers (e.g. LaMPSS in Nova Scotia, provincial LMDA networks)
Future applications under the combined Workforce Retention and Retraining Program will follow the streamlined single-offering process
Stacking notes
Work-Sharing EI benefits can be combined with provincial training supports (e.g. Workforce Tariff Response retraining while employees are on work-sharing)
The Worker Retention Grant supplements EI Work-Sharing benefits
Supports are funded through EI contributions and Labour Market Development Agreement / Workforce Development Agreement envelopes
Notes
The Workforce Retention and Retraining Program (announced Aug 2026) merges the EI Work-Sharing program and the Worker Retention Grant into a single, more accessible and generous program
Workforce Tariff Response
$570M over three years to help up to 66,000 eligible workers, announced by Prime Minister Carney in September 2025
Not an exporter-direct grant; helps employers retain workers and workers retrain in tariff-affected industries
Proposed design would give EI-eligible workers with reduced hours income support equivalent to 70% of lost earnings (vs the standard Work-Sharing calculation)
Relevant services
The services below are grant-eligible: CanExport and EDC reimburse up to 50% for incorporated Canadian exporters.
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Grant programs can reimburse up to 50% of eligible market-entry costs. In one free call we tell you honestly whether your product fits a non-US market.
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