Employment Insurance claims have surged by as much as 400% in Canadian communities battered by U.S. tariffs, with nearly 90,000 jobs potentially at risk, according to new federal government figures.Blacklock's Reporter said cabinet disclosed the figures Wednesday in a Regulatory Impact Analysis Statement issued by the labour department, warning that American trade restrictions continue to threaten Canadian workers and businesses.“The tariff situation remains unpredictable with an ongoing risk of considerable job losses,” said the department.The government has extended a temporary waiver of the Employment Insurance waiting period until October 9, 2027, citing mounting pressure on workers in industries dependent on American markets.“Foreign tariffs have already significantly affected Canadian industries reliant on trade with the United States including lumber, steel and aluminum, automobiles and agriculture,” said the notice.Employment Insurance claims have climbed sharply in regions dependent on those industries, including Northern Ontario, where claims among steelworkers increased 44%.“The Employment Insurance region of Oshawa, for example, saw a 400% increase in regular claims,” said the department.Federal officials warned that American tariffs could threaten approximately 87,000 Canadian jobs, including 52,000 positions directly tied to exports and another 35,000 in supply chains and service industries.“United States tariffs could place approximately 87,000 Canadian jobs at risk including roughly 52,000 direct exporter jobs and approximately 35,000 jobs linked to suppliers and service industries,” said the Analysis Statement..The estimate was taken from an August 26 report published by The Hub, entitled New U.S. Tariffs On $28 Billion In Canadian Goods Put 87,000 Jobs At Risk, Economist Estimates.The report cited University of Calgary economist Trevor Tombe, a former Privy Council consultant, whose analysis examined the potential employment consequences of tariffs on Canadian exports.Federal officials said the estimates were consistent with rising unemployment claims in industries most exposed to American trade restrictions.“These findings are broadly consistent with Employment Insurance data showing elevated claims growth in tariff-exposed sectors and regions,” said the department.The government also acknowledged unemployed Canadians are having increasing difficulty finding work.Of the 1.5 million Canadians unemployed in August, 24% had been without work for at least 27 weeks, compared with 23% in August 2025 and 20.5% in August 2024.The figures indicate a growing proportion of unemployed workers are remaining out of work for extended periods as tariffs continue to disrupt major Canadian industries.The labour department's warning contrasts with comments made September 2 by Bank of Canada Governor Tiff Macklem, who suggested Canadian businesses and workers were adapting to the trade dispute.“Businesses, workers, they’re adjusting,” Macklem told reporters. “Canadians are adjusting to this higher tariffed, more uncertain environment.”Macklem acknowledged the challenges facing employers but said businesses were finding ways to operate despite American trade restrictions.“It’s not easy,” said Macklem. “It’s difficult, but they’ve got businesses to run. They are getting on. They are finding ways to do business.”“That has put the Canadian economy on a better footing going into this latest new wave of U.S. tariffs.”.The Bank of Canada has maintained its key interest rate at 2.25% since October 28, 2025.Its next scheduled interest rate announcement is October 28.The federal government's latest assessment underscores the continuing uncertainty surrounding Canada's trade relationship with the United States, particularly for workers in manufacturing, forestry, agriculture and other export-dependent industries.The 87,000-job estimate represents positions potentially at risk from tariffs, rather than a confirmed count of jobs already lost.
