BUDGET 2024: Public service ranks to be reduced by 5,000 people over four years

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Canada’s federal public service population is expected to decline by about 5,000 people over the next four years as the government seeks to save through attrition.

The federal budget presented Tuesday said that, based on historical attrition rates, the number of full-time equivalent positions was anticipated to fall to about 363,000 from an estimated population of 368,000 at the end of March.

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“As our country grows and demographics change, such as millennials recently surpassing baby boomers as the largest age group, the government must adapt to the changing needs of Canadians,” the budget said. “That’s why the government continually assesses demand for services and programs, and adjusts investments accordingly, ensuring Canadians have the support they need, when they need it.”

Speaking to reporters, Deputy Prime Minister Chrystia Freeland said the government believes it is important to be careful in how it spends Canadians’ money.

“They rightly expect us to put a lot of thought into how we spend the funds,” Freeland said. “That’s why it was really important for me, in this budget, to announce that, in four years, we will see a decrease in the size of the public service.”

Last year’s budget and the Fall 2023 Economic Statement announced a total of $15.8 billion in savings over five years, and $4.8 billion ongoing, to be reallocated and used for things like health care and housing.

While the government has already identified how and where it would find some savings, focusing on travel and consulting, the budget indicated that the second phase of the government spending reorientation initiative would seek to achieve savings “primarily through natural attrition in the federal public service . “

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“Beginning April 1, 2025, federal public service organizations will be required to cover a portion of increased operating costs through their existing resources,” Budget 2024 said.

Chris Aylward, national president of the Public Services Alliance of Canada, said in an interview that the job losses were “unfortunate.”

“Minister Anand, when he announced this last year, said, and I’m quoting him, that it’s not about doing more with less, it’s not about losing jobs,” Aylward said. “Now it seems we are talking about job loss.”

Aylward said the union would have to wait for the budget implementation bill to see what exactly this announcement means for members.

“It’s not a big number, of course, but I mean, it’s a number that we’re going to follow very closely and watch very carefully,” Aylward said.

According to the Government of Canada website, the federal public service population was much smaller in 2015 than it is now, with 257,034 employees working for the government at the time. Canada’s population has also grown significantly since then, however, since 35 millions to more than 40 million.

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In a statement after the budget was released, Renaud Brossard of the Institut économique de Montréal said the “explosion” in the number of public servants was “symptom of a government that has lost all control over the growth of its spending.”

NDP Leader Jagmeet Singh said at a news conference that he was “concerned” about the loss of 5,000 public sector employees.

“We have serious concerns,” Singh said. “I want to hear from the prime minister what his plan is to address those concerns. What is his plan to address the fact that we are losing what his budget is going to cut, 5,000 public sector employees? How do you ensure we continue to serve Canadians well?

Taking into account attrition, the budget said the government could achieve “remaining savings” of $4.2 billion over four years from 2025-26 and $1.3 billion ongoing towards the public spending reorientation target.

The document, which included other public service-related funds such as a government-wide cybersecurity strategy, for recruiting and training for Canada’s foreign service and to continue work on a potential next-generation pay solution, It said the loss of staff would not affect the delivery of benefits to Canadians and would be implemented “in a way that continues to support regional representation and a diverse workforce in the public service.”

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“Going forward, the government will continue to review spending across all departments and on key initiatives to ensure the government operates effectively and efficiently for Canadians,” the budget said. “Ongoing reviews of government spending and programming are an important component of managing public finances prudently and responsibly.”

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