Canadian Government launches Worker Retention Grant to help Work-Sharing employers support employees with training and income top-ups across the country

Canadian employers navigating a changing economic landscape now have a new tool to keep their workforce intact.

On February 17, 2026, the Government of Canada opened applications for the Worker Retention Grant for Work-Sharing Employers, designed to help workers maintain income while upskilling during periods of reduced hours.

The announcement comes as businesses face global economic uncertainties, supply chain disruptions, and tariff pressures that continue to impact sectors such as steel, lumber, and automotive manufacturing.

With layoffs looming in some industries, the new Grant provides employers a way to keep valuable talent on board while giving employees the chance to improve skills relevant to today’s job market.

How the Worker Retention Grant Works

The Grant targets employers who already have an active Work-Sharing agreement in place.

These agreements allow companies to temporarily reduce employees’ work hours while providing them with Employment Insurance (EI) Work-Sharing benefits to compensate for lost income.

Under the new Grant, employers can top up employees’ reduced income while encouraging participation in essential skills training.

With the funding, income replacement for employees who take part in training can increase from 55% to roughly 70% of their normal pay.

This approach helps workers stay financially stable while learning skills that match evolving industry demands.

To qualify, employers must:

• Have an approved and active Work-Sharing agreement.
• Commit to supporting employees’ skill development for a minimum number of weeks or until March 31, 2027, whichever comes first.
• Offer training that is relevant to business needs, including workplace safety, digital literacy, problem-solving, numeracy, or language proficiency.

Training can be delivered online, in-person, facilitator-led, or even peer-to-peer during non-work hours.

This flexibility ensures employers can choose programs that best suit their workforce and operational needs.

Supporting Businesses During Transformation

Even with temporary measures, some employers worry about retaining staff amid business transformations, restructuring, or adapting to new market pressures.

The Worker Retention Grant addresses this by helping employees gain skills that increase employability and adaptability, while businesses retain the talent necessary to remain competitive.

Funded with $102.7 million over two years, the program is expected to assist around 26,000 workers across Canada, particularly in industries affected by tariffs.

It also aligns with broader government efforts to mitigate layoffs and support economic recovery, continuing initiatives introduced in 2025 to help tariff-impacted sectors.

Finding the Right Training

Employers and workers are encouraged to use Job Bank’s Training Finder, a free resource connecting employees to thousands of upskilling opportunities tailored to industry and career goals.

This platform allows workers to discover courses that are short or long, online or in-person, ensuring that learning fits both schedules and business priorities.

Eligible training focuses on foundational skills, such as:

• Workplace safety
• Digital literacy
• Numeracy and problem-solving
• Language proficiency

By integrating training with income support, the Grant aims to make skill-building a seamless part of the Work-Sharing experience.

Work-Sharing Program and Past Measures

The EI Work-Sharing program has long helped employers avoid layoffs during economic slowdowns.

Under these agreements, employees agree to reduced hours, and EI benefits provide partial income replacement.

In March 2025, the government introduced flexibilities to help more companies access Work-Sharing, especially in response to tariffs.

That year, Work-Sharing applications doubled compared to 2024, with over 2,000 applications received.

Of these, more than 1,400 were tariff-related, helping prevent approximately 20,000 layoffs and safeguarding jobs for over 52,000 Canadian workers.

What’s Next?

Employers interested in applying should ensure their Work-Sharing agreements are approved and explore Job Bank resources to identify suitable training.

Applications will remain open until the Grant’s end date, March 31, 2027, or until funding runs out.

Analysts expect the program to provide a blueprint for how targeted grants can support workforce stability during economic uncertainty.

For employees, this is a chance not only to maintain income but also to acquire skills that could boost future career prospects.

Summary

The Worker Retention Grant is Canada’s latest effort to help employers and workers weather economic turbulence.

By combining income top-ups with flexible, skills-focused training, the program supports workforce retention, reduces layoffs, and strengthens employee adaptability.

With $102.7 million in funding and expected reach to 26,000 workers, it promises to bolster sectors hit hardest by global market changes and tariffs.

Employers benefit from retaining skilled talent, workers gain critical skills, and the Canadian economy gets a tool to maintain stability during ongoing transformation.