Canada Launches Workforce Retention Program for Businesses

Employment and Social Development Canada implemented the Workforce Retention and Retraining Program, accepting applications on October 22, 2026. The program supports employers who keep staff on reduced schedules while they receive training due to tariff and market changes. Employers may receive up to C$1,000 per employee for training and administrative costs, and employees can receive Employment Insurance Work-Sharing benefits when hours are reduced.

The initiative is part of a broader C$3.5 billion effort by the government to support workers and employers. The department estimates the program could prevent 20,000 layoffs by helping businesses retain skilled staff and allowing workers to build new skills.