Public Service Workforce Decline: A Comprehensive Overview
OTTAWA — The landscape of the Canadian federal public service underwent a significant transformation last year, shedding almost 10,000 employees. This shift highlights key concerns about workforce sustainability, especially within pivotal organizations like the Canada Revenue Agency (CRA) and Immigration, Refugees and Citizenship Canada (IRCC), which faced the largest losses.
Historical Context
The last contraction in the public service occurred back in 2015, a minor drop from 257,138 to 257,034 employees. However, the current decline marks a more pronounced shift, with the total number of public servants employed falling from 367,772 to 357,965 over the past year.
Major Losses by Department
The CRA experienced the most significant downsizing, losing 6,656 employees and decreasing its workforce from 59,155 to 52,499. Similarly, IRCC saw its numbers dwindle from 13,092 to 11,148, resulting in a loss of 1,944 employees. Other departments also faced cuts, notably:
- Public Health Agency of Canada: 879 employees
- Shared Services Canada: 608 employees
- Health Canada: 559 employees
- Canadian Food Inspection Agency: 453 employees
Unexpected Growth in Some Areas
Interestingly, not all areas of the federal public service saw downsizing. Certain departments like the Royal Canadian Mounted Police (RCMP) and Elections Canada expanded their workforces. The RCMP hired 911 new public servants, while Elections Canada added 479, among others.
Employee Types at Risk
A closer look at the types of employees affected reveals a trend toward the elimination of term positions. Nearly 8,000 term employees left the public service between 2024 and 2025, along with almost 3,000 casual employees and 1,750 students. While the number of permanent federal employees saw a rise of approximately 2,700, the overall trend indicates a shift toward consolidating personnel.
Age Composition of Departing Employees
Strikingly, more than three-quarters of those who departed the federal public service last year were under the age of 35. This demographic breakdown showed that:
- Ages 25-29: 4,413 employees departed
- Ages 20-24: 3,354 employees
- Ages 30-34: 563 employees
- Under 20: 246 employees
This trend raises questions about the future of institutional knowledge and innovation within the federal workforce.
Perspectives on Workforce Reduction
Lori Turnbull, a political science professor at Dalhousie University, argues that the reduction of term positions is unsurprising, as these roles typically do not require renewal. Term roles often serve as entry points into the public service, and their elimination may hinder fresh perspectives.
David McLaughlin, executive editor of Canadian Government Executive Media, echoes these sentiments, noting that younger employees are often easier and less costly to let go. He cautions that this could result in a stagnation of ideas, reinforcing older, less productive staff.
Financial Implications
The federal government allocated a staggering $43.3 billion on salaries for public servants in 2023-24 alone, amounting to a total of $65.3 billion when including pensions, overtime, and bonuses. As such, the costs associated with a contracting workforce are substantial and carry long-term implications for public sector efficiency and service delivery.
Future Outlook
Since the previous Liberal government’s announcement to focus on reducing public spending, expectations of layoffs have become a reality. In the 2024 budget, the government anticipated a downturn of around 5,000 full-time positions over the next four years. Moving forward, the government plans to implement spending caps — although specific details remain scant.
Prime Minister Mark Carney has vowed to navigate these challenges strategically, aiming for a "comprehensive" review of government spending to enhance productivity while ensuring essential services are maintained.
Conclusion
While the downsizing of the federal public service reflects an attempt to streamline operations and manage budget constraints, the repercussions of such cuts — particularly among younger and term employees — pose risks for the future of public service innovation and efficacy. As Canada moves forward, finding the balance between fiscal responsibility and workforce sustainability will be critical.
