New federal retraining program offers employers up to $1,000 per worker

Canadian employers facing temporary economic pressure can now apply to a new federal Workforce Retention and Retraining Program designed to help them keep employees while providing training.

The program can contribute up to $1,000 per participating employee for training costs. Eligible workers may also receive income support through the existing Work-Sharing program while their hours are reduced for training.

Employment and Social Development Canada says successive Work-Sharing agreements can extend to a cumulative 152 weeks under the initiative. The program is open across sectors and is scheduled to run from October 2026 through March 2028.

The measure forms part of the federal government’s $3.5-billion Rapid Response initiative announced in August. Employers must apply through the federal process; the announcement does not guarantee approval or funding for every applicant.

Source: Government of Canada announcement, published October 22, 2026.

Illustrative photo: Sam Moghadam / Unsplash licence. Cropped and resized.