Backgrounder on Workforce Retention and Retraining Program

On August 25th, 2026, the Government of Canada introduced a $3.5 billion investment in Rapid Response Supports for Workers and Employers, including the new Workforce Retention and Retraining Program (WRRP), to help employers and workers respond to economic challenges and prepare for emerging opportunities.

Workforce Retention and Retraining Program

The WRRP helps employers retain skilled workers, avoid layoffs, invest in workplace retraining and adapt to changing economic conditions. Flexible retention measures and retraining support help employees develop new skills while working reduced hours.

Benefits of the WRRP for Employers and Employees

• Employees participating in eligible training can maintain earnings closer to normal levels through an income top-up while working reduced hours and developing new skills;
• Employers can retain and retrain skilled workers, help avoid layoffs and support longer-term business recovery, while receiving up to $1,000 per participating employee to help offset eligible training and related administrative costs;
• Employers have flexibility to choose training that is relevant to their operational and workforce needs, including technical training, digital and foundational skills training, peer-to-peer learning and on-the-job training;
• Employers have flexibility in how available work is shared among participating employees, allowing scheduling to reflect operational needs;
• Employers can proactively adapt or transform their businesses, including undertaking retooling, market diversification and other business adaptation activities, while retaining and retraining their workforce;  
• Employees and employers can be supported for up to 152 cumulative weeks; and
• Up to 66,000 workers are expected to benefit from the WRRP, including approximately 50,000 workers expected to receive retraining supports.

Eligibility and Application

WRRP is available to eligible employers seeking to retain workers during periods of economic adjustment, including employers affected by tariffs and those undertaking business adaptation activities, such as retooling operations, market diversification or other changes to strengthen business resilience.

Employers must commit to providing training opportunities for at least 40 per cent of the agreement period. Employees must participate in training offered during their non-working hours. More information on eligibility may be found Workforce Retention and Retraining Program - Work-Sharing - Who is eligible - Canada.ca

WRRP provides employers with a streamlined single application process for both workforce retention and retraining supports.

Employers currently participating in Work-Sharing (WS) or receiving support through the Worker Retention Grant (WRG) will be seamlessly transitioned to the WRRP. Employers without existing WS or WRG agreements will need to register for the Government of Canada’s Grants and Contributions Online Services (GCOS), available on the GCOS webpage before applying for WRRP.

Training

Under the WRRP, training options are flexible, allowing employers to align training activities with their operational realities and business priorities.

Training can be delivered using an online platform or in person and can include a range of formats, such as facilitator-led or peer-to-peer training.

Examples include:  

• Training offerings that support vertical skills development specific to an employer’s operations.  
• Foundational skills such as digital literacy, workplace safety, linguistic proficiency, problem-solving and numeracy.  
• Informal training such as on-the-job training or peer-to-peer knowledge transfer that builds meaningful skills and knowledge that could support professional growth.
• Employers can work with employees, unions, and provincial and territorial representatives to identify appropriate training. In addition, further resources, including no-cost options, can be found at: Training Finder - Job Bank

The WRRP is available to eligible businesses across all sectors and is in place until March 31, 2028. Employers can learn more and apply at Workforce Retention and Retraining Program - Work-Sharing - Overview - Canada.ca