'The impact of tariffs and the resulting economic uncertainty are beyond their control'
The federal government is temporarily expanding Employment Insurance (EI) coverage to support Canadian workers affected by the economic uncertainty triggered by the U.S. tariffs.
Specifically, Ottawa is artificially boosting the regional unemployment rates used to determine access to and duration of EI benefits. The rate will be boosted by one percentage point in all EI regions, with no region seeing an unemployment rate of less than 7.1%.
This temporary measure will reduce the hours required to qualify for regular benefits to no higher than 630 hours and increase the weeks of entitlement by up to four additional weeks.
“Canadian workers have always shown resilience in the face of significant challenges, but the impact of tariffs and the resulting economic uncertainty are beyond their control,” said Steven MacKinnon, minister of jobs and families. “That’s why the Government of Canada is acting swiftly to make changes to critical programs that protect Canadian jobs and workers and the Canadian economy.”
The move comes after more than 100 labour unions in the country called on the federal government to make some changes to the EI system amid the US tariffs.
The new policy will be in place for three months.
The federal government is also allowing claimants to receive EI benefits sooner. Ottawa is suspending the rules around treatment of severance, vacation, and other monies upon separation from employer so that they do not need to be used up before claimants are able to start receiving EI benefits.
This measure will be in effect for six months.
Also, Ottawa is waiving the waiting period so that workers will be 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.
This measure will be in effect for six months.
These measures are in addition to the EI Work-Sharing Program temporary flexibilities that the government announced earlier this month. To avoid temporary or permanent workforce reductions amid the US tariffs, an employer can register for the federal Work-Share Program if certain requirements are met, noted one expert.
The EI program functions as an “economic stabilizer,” including during economic downturns, according to the federal government.
For example, during the COVID-19 pandemic, the rules involving EI have been temporarily changed by the federal government to accommodate the increased number of lay-offs and unemployment.
Before the federal government's announcement, Unifor, the Canadian Union of Public Employees (CUPE) and Labour Studies at Simon Fraser University – along with the rest of the more than 100 groups – said they are hoping that Ottawa will reinstate the EI “temporary flexibilities” introduced in 2020-22, which they said should not be confused with the Canada Emergency Wage Subsidy (CEWS) or the Canada Emergency Response Benefit (CERB).
The flexibilities include:
“Given the economic disruption and job displacements, it is also urgent that the federal government restore and enhance the EI Part 2 supplements that were eliminated from provincial Labour Market Agreements in the last budget,” said the groups. “Provincially administered retraining and employment programs are more important than ever.”
Previously, Ottawa introduced a bill to amend the Department of Employment and Social Development Act to create an Employment Insurance (EI) Board of Appeal to establish what it calls a more client-centric appeal process.
Dainty Foods – which has been in business for 142 years – may not survive U.S. President Donald Trump’s tariffs, according to a report from the New York Times. Canada’s unemployment rate could surge because of the US tariffs, according to one expert from TD Bank.
