Public service sheds 12,600 jobs under Carney cuts

The federal government has shed more than 12,000 public service positions over the past year, putting Prime Minister Mark Carney on track to meet his downsizing targets, according to new Treasury Board data.

As of March 31, the federal public service employed roughly 345,000 workers—down by more than 20,000 from a peak at the end of 2023-24. The government is aiming to reduce the headcount by around 30,000 positions by 2028-29, a target experts say is within reach. "The curve is bending, and it will only bend downwards for the next two or three years," said Michael Wernick, a former clerk of the Privy Council.

The National Capital Region has been hit hardest. Ottawa-Gatineau was home to approximately 146,000 public servants at fiscal year-end—nearly 10,000 fewer than at the end of 2023-24, though still higher than headcount at the end of 2021-22.

Experts warn the longer-term impact remains uncertain. Some departments face knowledge gaps as experienced staff retire or depart through the Early Retirement Incentive program. Others experience a "musical chairs" effect as workforce adjustments force workers to compete for positions or seek private-sector roles. "A lot of people are close to retirement," said Lori Turnbull, a management professor at Dalhousie University. "They put their hands up, they all want to leave, and pretty soon you've got a significant gap in knowledge and service."