Canada Lost 84,000 Jobs in February 2026: Here Is How to Apply for EI If You Have Been Laid Off

On March 13, 2026, Statistics Canada reported that the Canadian economy shed 84,000 jobs in February, the largest monthly decline outside the pandemic in years. The unemployment rate climbed to 6.7%, up from 6.5% in January. Full-time employment alone dropped by 108,000 positions.

If you are one of the Canadians affected by recent layoffs, this guide covers what is happening, what EI benefits you can claim, and exactly how to apply.

What Is Happening in the Canadian Job Market

The Numbers (February 2026)

84,000 net jobs lost (economists expected a gain of 10,000)
108,000 full-time positions eliminated
Unemployment rate: 6.7%
Youth unemployment (15-24): jumped to 14.1%, with 47,000 positions lost
This follows a loss of 25,000 jobs in January, making it two consecutive months of decline

Hardest-Hit Sectors

Wholesale and retail trade: -18,000 jobs
Other services (personal care, repair, maintenance): -14,000
Construction: -12,000
Manufacturing: -9,200 (tariff and trade war impact)

Hardest-Hit Provinces

Quebec: -57,000 jobs (first significant decline in over 4 years)
British Columbia: -20,000
Saskatchewan and Manitoba: also declined

Why It Is Happening

US tariffs: Steel, aluminum, and auto sectors hit hard. Algoma Steel reported shipments down 31% and confirmed 1,000 layoffs. Canadian auto suppliers face a 70% sales collapse in some regions.
Public sector cuts: Over 26,000 federal public servants have received workforce adjustment notices as part of a plan to cut 28,000 positions by 2029.
Telecom contraction: BCE cut 1,700 jobs as the industry contracts.
Stellantis: More layoffs at the Brampton assembly plant.
Trade uncertainty: CUSMA review set for July 2026 has frozen hiring across many industries.

What Is Employment Insurance (EI)?

EI regular benefits provide temporary income to workers who have lost their job through no fault of their own (layoff, company closure, shortage of work). It is not available if you quit voluntarily or were fired for misconduct, although there are appeal processes for disputed situations.

EI Regular Benefits: 2026 Key Numbers

Item	2026 Amount
Maximum weekly benefit	$729/week
Benefit rate	55% of average insurable weekly earnings
Maximum insurable earnings	$68,900/year
Benefit duration	14 to 45 weeks (depends on hours worked and regional unemployment rate)
Waiting period	1 week (currently waived under temporary measures)

Do You Qualify?

To receive EI regular benefits, you generally must:

Have been employed in insurable employment
Have lost your job through no fault of your own
Have been without work and without pay for at least 7 consecutive days
Have accumulated enough insurable hours in the past 52 weeks (the “qualifying period”). The required hours range from 420 to 700, depending on your region’s unemployment rate
Be ready, willing, and capable of working each day
Be actively looking for work

How to Apply: Step by Step

Step 1: Get Your Record of Employment (ROE)

Your employer must issue an ROE within 5 calendar days of your last day of work. Most employers submit electronically to Service Canada. You can check if yours has been filed through My Service Canada Account.

Do not wait for the ROE to apply. You can (and should) file your EI claim immediately.

Step 2: Apply Online

Go to canada.ca/ei and select “Apply for EI benefits.” You will need:

Your Social Insurance Number (SIN)
Your mailing address and postal code
Your banking information for direct deposit
Names and addresses of all employers in the last 52 weeks
Dates worked and reason for separation
Your ROE details (if you have them)

Important: Apply as soon as possible after your last day of work. You should apply within 4 weeks of losing your job. Late applications may reduce your benefit period.

Step 3: Complete Bi-Weekly Reports

Once your claim is active, you must complete bi-weekly reports through My Service Canada Account or by phone. These reports confirm you are still looking for work and report any earnings during the period.

Missing a report means your payment stops. Set a calendar reminder.

Step 4: Wait for Processing

Service Canada aims to process claims within 28 days. Under the current temporary measures, the 1-week waiting period is waived for eligible claims, meaning your first payment may arrive faster than usual.

Temporary Measures in Effect (2026)

The federal government has enacted several temporary EI enhancements relevant to recent layoffs:

Waiting period waived: Eligible claimants may receive benefits from day one instead of waiting one week
Severance allocation suspended: For claims in the temporary window, severance pay or pay-in-lieu may not reduce your EI benefits during the initial period
Extra weeks for long-tenured workers: Eligible claimants may receive up to 20 additional weeks (max 65 weeks total)
Work-Sharing program expanded: Employers can reduce hours instead of laying off staff, with EI covering the shortfall. Over 50,000 workers are currently in Work-Sharing agreements

What About Severance Pay?

If you received severance, it normally affects your EI start date (benefits are delayed by the number of weeks of severance). However, under the current temporary allocation suspension, some separation payments may not delay your EI benefits. Check your specific claim dates against the temporary window.

How EI Benefits Are Taxed

EI benefits are fully taxable income. Federal and provincial tax is withheld at source, but often at a rate lower than your actual marginal rate. If you worked part of the year and received EI for the rest, you may owe additional tax when you file your return.

EI repayment (clawback): If your 2026 net income exceeds $86,125, you may have to repay 30% of your EI benefits. First-time EI claimants may be exempt from the repayment provision for special benefits.

Government Relief Programs Beyond EI

Canada-Ontario Workforce Tariff Response: $228.8 million fund to retrain 27,000 workers in steel, lumber, and auto sectors (announced March 10, 2026)
Provincial training programs: Most provinces offer retraining support for displaced workers. Check your provincial employment services website.
GST/HST credit and Canada Workers Benefit: If your income drops, you may qualify for or receive higher amounts of these benefits when you file your tax return

What to Do Right Now

Apply for EI immediately — do not wait for your ROE
Register on Job Bank (jobbank.gc.ca) — it is free and may be required
Set up direct deposit for faster payments
Complete bi-weekly reports on time — missing one stops your payments
Keep records of your job search activities
Check temporary measures — your claim timing affects waiting period and severance treatment
Plan for taxes — EI is taxable, set aside funds or request additional withholding

Lost your job and need help navigating EI and tax implications? Contact FinGems.ca for guidance on benefits, tax planning, and making the most of a difficult situation.