Federal government extends Employment Insurance temporary measure to help workers impacted by U.S. tariffs

Cision Canada

10-07-2025

GATINEAU, QC, July 10, 2025 /CNW/ - Tariffs imposed on Canadian goods by the United States and other trading partners continue to hurt Canadian workers and employers. In response, the federal government introduced measures to support workers with timely and reliable access to Employment Insurance (EI) benefits, particularly those in sectors and regions heavily impacted by US tariffs.
Today, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, and the Honourable John Zerucelli, Secretary of State (Labour), announced the extension of the temporary adjustment to EI regional unemployment rates until October 11, 2025.
This decision continues to reduce the hours required to qualify for regular benefits to no higher than 630 hours and increases the weeks of entitlement by up to four additional weeks.
The Government continues to be engaged in negotiations on a broader trading arrangement with the United States with a primary focus on getting the best deal for Canadian workers and businesses. At the same time, it is equally important to help affected Canadian workers access the income support they need during this difficult and uncertain time.
Quotes
"Workers are the backbone of the economy, and in the face of tariffs, we are putting forward measures that make a meaningful difference to their lives. These measures will help workers access the income support they need in the current economic uncertainty. Along with our efforts to create one Canadian economy, with more opportunities for Canadian businesses and workers, we are building the foundations for a Canada strong."
– The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario
"Unjustified tariffs are hurting Canadians, but we're standing with workers. This extension ensures continued income support as we push to end harmful trade barriers and protect good jobs across the country."
– The Honourable John Zerucelli, Secretary of State (Labour)
Quick facts
On March 23, 2025, the federal government introduced new temporary EI measures to support Canadian workers whose jobs are impacted by the current economic uncertainty caused by these tariffs. These measures include:
adjusting the EI regional unemployment rates upward by one percentage point in all EI regions, up to a maximum of 13.1%, with no region seeing an unemployment rate below 7.1%;
temporarily waiving the one-week EI waiting period so that workers are able to receive benefits for the first week of unemployment, helping unemployed workers more easily adjust to a drop in income. All claimant types (regular, special, fishing) are eligible for this measure; and
suspending the treatment of monies paid on separation (e.g. severance pay), so that these do not need to be used up before claimants are able to start receiving EI benefits.
The measure extended today was set to expire on July 12, while the other two are in effect until October 11, 2025.
Over 290,000 workers are expected to benefit from this extension.
In addition to the three EI temporary measures, additional flexibilities to the Work-Sharing Program were also introduced in March 2025 to allow more businesses and employees to participate in the Program.
The Work-Sharing Program provides EI benefits to eligible employees who agree with their employer to work reduced hours due to a decrease in business activity beyond their employer's control.
This helps employers retain experienced workers and avoid layoffs and helps workers maintain their employment and skills while supplementing the reduced wages with EI benefits.
As of June 28, 2025, Service Canada has signed more than 700 Work-Sharing Agreements with businesses and workers impacted by tariffs.
These agreements cover almost 27,200 workers and are helping to avert almost 10,200 layoffs.
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The Government of Canada introduces new employment insurance measures to support Canadian workers impacted by foreign tariffs
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SOURCE Employment and Social Development Canada