Number of federal public service jobs could drop by almost 60,000, report predicts

By Canadian Press on July 24, 2025.

OTTAWA — A new report by the Canadian Centre for Policy Alternatives says the federal public service could shed almost 60,000 jobs over the next four years as Ottawa looks to cut costs.

Earlier this month, Finance Minister François-Philippe Champagne sent letters to multiple ministers asking them to cut program spending at their departments by 7.5 per cent next spring, 10 per cent the year after and 15 per cent in 2028-29.

The report, written by senior economist with the Canadian Centre for Policy Alternatives David Macdonald, says the federal public service could lose up to 57,000 employees by 2028.

The report predicts that tens of thousands of the jobs will be cut at the Canada Revenue Agency, Employment and Social Development and Immigration, Refugees and Citizenship Canada — three organizations that have already seen a drop in employees in recent months.

The report says the cities of Ottawa and Gatineau will likely “bear the brunt” of the cuts because almost half of the job losses will be in the National Capital Region.

The report predicts that service impacts will be felt across the country as a result of the job losses, adding that cuts will mean longer wait times, more errors and “fewer people to fix those errors.”

This report by The Canadian Press was first published July 24, 2025.

Catherine Morrison, The Canadian Press