Canada began accepting applications Oct. 22 for a federal program that supports employers keeping staff on reduced schedules while training them as tariff and market changes pressure businesses.
Employment and Social Development Canada said the Workforce Retention and Retraining Program is open to employers across sectors preparing to change operations, retool or diversify. Employers can choose training suited to their needs, including technical, digital or foundational skills, peer learning and instruction on the job. They may receive up to C$1,000 per participating employee for training and administrative costs.
Employees in approved arrangements can receive Employment Insurance (EI) Work-Sharing benefits when their hours are reduced. The income top-up applies when they take part in training outside work hours. The program temporarily removes the rule requiring employees to share reduced hours equally, allowing more flexibility in work schedules.
About 1,790 employers are expected to receive training and administrative funding, within a projected total of more than 2,300 employers the program could support. The department estimates the program could prevent 20,000 layoffs.
Minister of Jobs and Families Patty Hajdu said the program aims to help businesses retain skilled staff and give workers a chance to “build new skills.”
The program sits within a broader C$3.5 billion effort the government announced in August 2026, called Rapid Response Supports for Workers and Employers. That initiative also includes EI measures and workplace training investments. The Oct. 22 announcement said temporary EI measures would be extended by up to a year, including removal of the one-week waiting period, up to 20 extra weeks for eligible long-tenured workers and a suspension of deductions for separation earnings.
The government says earlier temporary Work-Sharing measures helped avert about 25,000 layoffs across roughly 1,600 agreements since January 2025. The retraining program is scheduled to run through March 2028.
