Canada's public sector job losses hit nearly 150,000 since May

Canada's public sector employment has contracted by nearly 150,000 workers since May under federal and provincial austerity measures. The Carney government announced in summer 2025 that it would cut $57 billion in spending and eliminate 30,000 federal positions by 2028—almost half concentrated in the National Capital Region.

September employment fell 68,000 overall, with public sector losses accounting for 70,000 of that decline. The unemployment rate reached 6.5%, while the employment rate dropped to 60.6%.

Women have borne the brunt of the cuts. Women's share of public sector job losses from May through September exceeded 80%, with women's public sector employment falling 4.2% over that span. Educational services saw the steepest losses—down 44,000 jobs—followed by public administration (down 22,000) and health care and social services (down 23,000 in September alone after holding flat through August).

The job losses concentrate in central Canada, with Quebec and Ontario shedding roughly 60,000 public sector positions combined during the summer months. Manitoba lost 11,000 and Alberta the same.

The cuts extend beyond government. Steel producer Stelco announced September 28 it would idle parts of its Hamilton and Nanticoke operations, potentially impacting up to 500 workers. Ron Wells, president of United Steelworkers Local 1005, said Hamilton: "I hate using 'we're disappointed'—we're disgusted." A Stelco line worker at Hamilton, whose spouse is a union representative with the Canadian Union of Public Employees, told the source the family has four children.

Ontario's health funding, already rising only 0.5% this year, is forecast to decline 1.6% in the following year.