* Opposition leader cites progress after ultimatum

* Prime minister says planning to change jobless benefits

* House set to hold confidence vote Friday (Recasts with prime minister and Ignatieff reaction)

By David Ljunggren and Randall Palmer

OTTAWA, June 15 (Reuters) - Canadian opposition leader Michael Ignatieff appeared to step back on Monday, at least partially, from a threat to trigger an early election, saying progress had been made after he laid down an ultimatum to the government.

Earlier in the day Ignatieff had threatened to topple the minority Conservative government of Prime Minister Stephen Harper unless it met a series of demands, the main one of which was to detail how it would expand eligibility for jobless benefits.

Harper quickly called a news conference to reject a general easing of eligibility requirements but said he was planning to allow the self-employed to opt into the Employment Insurance system this autumn.

Ignatieff appeared on national television shortly afterwards to say Harper's announcement might go some way to meeting the Liberals' demands.

"I think we made a little progress today," he told the Canadian Broadcasting Corp. "And the progress is towards making Parliament work for Canadians."