Ottawa loses 15,000 jobs in 18 months as federal cuts reshape local economy
The capital's employment fell to 690,700 from 705,500 since March 2025, the steepest drop of any Ontario city.
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Ottawa's employment has collapsed. The city lost approximately 15,000 jobs in the last 18 months, dropping from 705,500 to 690,700, marking the steepest decline of any Ontario city.
Federal budget cuts to the public service are the main driver. The federal government announced last year it would shed approximately 30,000 jobs across the public service over several years. Since the second quarter of 2024, almost 24,000 of those positions have already been cut, according to Canada's budget watchdog online tracker.
"Much of that loss is actual federal public admin losses that's driving this cratering of the job market in Ottawa," said David Macdonald, senior economist at the Canadian Centre for Policy Alternatives. He noted the federal government's impact has been more severe than other economic pressures. "So everyone's concerned, as they should be, about some of the implications of the tariff war with the U.S. But in real practical terms, what the federal government has done has been much more impactful when it comes to layoffs."
Women are being hit particularly hard. Women make up approximately 57 per cent of the federal public service in Ottawa. While women in the broader public sector earn approximately 3 per cent less than men — better than the private sector's 9 per cent gap — they face disproportionate risk of job loss. A pay equity report released October 14 found that women benefit from better pay parity in government roles than private work. But a 2024 projection from the Canadian Centre for Policy Alternatives estimated that 59 per cent of public service cuts would affect positions held by women.
"Women are getting hit hard here, right? Like this is a major employer of women. And not only are they more likely to lose their job and therefore end up getting the unemployment lines, but even if they do get a private sector job, they're likely looking at a pay cut," Macdonald said. The think tank also projected the cuts would disproportionately affect Indigenous, disabled and racialized workers.
How many federal positions are left to cut before the government reaches its 30,000 target?
What retraining or income support is being offered to workers being laid off?
We'll update this story as answers emerge.
The facts
How many jobs did Ottawa lose?
Ottawa lost approximately 15,000 jobs over 18 months, with employment falling from 705,500 to 690,700.
What is causing the job losses in Ottawa?
Federal budget cuts to the public service are the main driver, with the federal government shedding approximately 30,000 jobs across the public service over several years and nearly 24,000 already cut since the second quarter of 2024.
How are women affected by Ottawa's job losses?
Women make up approximately 57 per cent of the federal public service in Ottawa, and a 2024 projection estimated that 59 per cent of public service cuts would affect positions held by women. Women in the federal government earn approximately 3 per cent less than men, but face disproportionate risk of job loss and potential pay cuts if moving to the private sector.
