The federal public service in Canada could shrink dramatically over the next four years, with a new report forecasting up to 57,000 job cuts by 2028. The report, released Thursday(July 24) by the Canadian Centre for Policy Alternatives (CCPA), comes as the federal government pushes for sweeping spending reductions across departments.
The cuts stem from a directive issued earlier this month by Finance Minister François-Philippe Champagne, who instructed cabinet ministers to identify 15 percent in program spending reductions by the 2028–29 fiscal year.
The projected layoffs would affect a wide swath of federal departments, including the Canada Revenue Agency, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada, all of which have already seen declining staff numbers in recent months.
Economists warned that Canadians should expect longer wait times, higher error rates, and reduced capacity to resolve service issues. The Ottawa–Gatineau region, which hosts nearly half of Canada’s federal workforce, is expected to take the hardest hit.
The federal government says the cuts are part of a broader effort to “return to core responsibilities” while maintaining fiscal discipline. Barb Couperus, spokesperson for the Treasury Board of Canada Secretariat, confirmed that a lower 2 percent savings target will apply to the Department of National Defence, the RCMP, and the Canada Border Services Agency.
Agencies like the Office of the Auditor General and Supreme Court Registrar are exempt due to their independent status.
Couperus emphasized that ministers have been instructed to review all spending in their portfolios and prioritize programs that are core to the federal mandate, avoiding duplication with other levels of government. Statutory transfers to provinces and individuals will be maintained, but most other spending, including Crown corporations, is subject to review.
The job reductions follow an earlier round of cuts introduced in Budget 2023, which are expected to reach peak impact by 2026–27. Federal employment already fell by nearly 10,000 workers in 2024, dropping from 367,772 to 357,965.
Prime Minister Mark Carney had promised during the spring election campaign to “cap” but not cut public service employment. However, the commitment was always likely to give way to real reductions, especially after the government committed to large-scale defence spending and tax cuts post-election.
The report also suggests that departments may offer retirement buyouts and eliminate term and casual positions, potentially impacting younger and newer workers disproportionately.
