Federal Public Service Faces Massive Job Cuts: Nearly 60,000 Positions at Risk
Ctv News1 day ago
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Federal Public Service Faces Massive Job Cuts: Nearly 60,000 Positions at Risk

INDUSTRY INSIGHTS
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Summary:

  • Nearly 60,000 federal public service jobs could be cut over the next four years as part of cost-saving measures

  • Finance Minister directs 7.5%, 10%, and 15% cuts in program spending over the next three years

  • Canada Revenue Agency, Employment and Social Development, and Immigration, Refugees and Citizenship Canada expected to be most affected

  • Ottawa and Gatineau to face nearly half of the job losses, impacting the National Capital Region significantly

  • Potential consequences include longer wait times, more errors, and reduced capacity to fix mistakes

A startling report from the Canadian Centre for Policy Alternatives reveals that the federal public service might lose nearly 60,000 jobs in the next four years. This drastic measure is part of Ottawa's strategy to significantly reduce costs.

The Plan for Spending Cuts

Finance Minister François-Philippe Champagne has directed multiple ministers to implement steep cuts in program spending: 7.5% next spring, 10% the following year, and 15% in 2028-29.

Impact on Federal Employees

According to David Macdonald, a senior economist at the Canadian Centre for Policy Alternatives, up to 57,000 federal public service jobs could be eliminated by 2028. The hardest-hit sectors are expected to be:

  • Canada Revenue Agency
  • Employment and Social Development
  • Immigration, Refugees and Citizenship Canada

These organizations have already experienced a decline in staff numbers in recent months.

Regional Consequences

The cities of Ottawa and Gatineau are predicted to suffer the most, with nearly half of the job losses occurring in the National Capital Region.

Service Delivery at Risk

The reduction in workforce is likely to lead to:

  • Longer wait times for services
  • Increased errors in service delivery
  • Fewer staff available to correct these mistakes

This analysis underscores the potential widespread impact of these cuts on public service quality across Canada.

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