Potential reduction of over 59,000 positions in federal public service, according to projected forecast
The Canadian Centre for Policy Alternatives has released a report in July 2025, outlining the significant impacts of the expected federal public service job cuts over the next four years. The cuts, primarily due to a directive from Finance Minister François-Philippe Champagne to reduce program spending by 15% by the 2028-29 fiscal year, are projected to affect tens of thousands of jobs, particularly in key departments such as the Canada Revenue Agency (CRA), Employment and Social Development Canada (ESDC), and Immigration, Refugees and Citizenship Canada (IRCC).
Expected Job Cuts and Affected Departments
The report forecasts up to 57,000 federal public service jobs could be lost, with the Ottawa-Gatineau Region bearing the brunt of the cuts, potentially losing up to 24,000 jobs. This region hosts nearly half of Canada's federal workforce, making it particularly vulnerable.
Service Impacts
The report warns that Canadians should expect longer wait times, increased error rates, and reduced capacity to resolve service issues due to the staffing reductions. The Canada Revenue Agency, Employment and Social Development, and Immigration, Refugees and Citizenship Canada are among the federal bodies predicted to experience job losses.
Government Perspective
The federal government frames these cuts as part of a broader strategy to return to core responsibilities while maintaining fiscal discipline. Some departments, like the Department of National Defence, the RCMP, and the Canada Border Services Agency, are subject to a lower savings target of 2%. Ministers have some flexibility in choosing where the cuts will land, with the possibility of cuts to transfers to First Nations governments, supports for veterans and newcomers, international aid, and research.
Impact on Cities
The cities of Ottawa and Gatineau are expected to bear the brunt of the job cuts, with almost half of the losses occurring in the National Capital Region. The end of all term and casual employment is expected, which may impact younger workers who aren't yet indeterminate.
Prime Minister Mark Carney campaigned on a promise to "cap" but not cut public service employment, but the report's author, David Macdonald, stated that this promise "never made sense." The savings from the "refocusing government spending" initiative will hit their peak impact in 2026-27.
The government is asking departments to find savings to help cover major military spending increases and tax cuts. The cuts are expected to result in a drastic reduction in the quality of public services. The savings from the initiative are affecting staffing levels, and the number of public servants employed by the federal government fell from 367,772 to 357,965 last year.
The federal public service could lose up to 57,000 employees by 2028, according to the Canadian Centre for Policy Alternatives. The government is considering offering buyouts to older employees to encourage more retirements. However, the exact details of the job cuts and their implementation are still uncertain.
- The expected federal public service job cuts, as proposed by Finance Minister François-Philippe Champagne, could potentially impact the retirement plans of thousands of citizens, as they may be encouraged to retire early due to the reduction in workforce.
- The significant job cuts in key departments like the Canada Revenue Agency, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada, as a result of the federal public service job reductions, might lead to subsequent changes in the way business and finance are handled within these agencies.
