Canada’s Federal Public Service Prepares for Workforce Changes
Ottawa Adjusts Public Service Workforce
Canada’s federal government is reshaping its public service employment landscape as Budget 2025 pursues cost savings and structural changes. Ottawa plans to reduce the total number of federal public service positions by about 40,000 by 2029. This represents roughly 10 percent fewer jobs than the peak workforce seen in 2023‑24.
Recent notices warning workers of potential job cuts have sparked concern across government agencies. Hundreds of employees in departments such as Natural Resources Canada, the Public Service Commission, Indigenous Affairs, and Finance have received warnings that their roles may be affected.
New Hiring Needs in Some Areas
While overall federal staffing levels are expected to decrease, other parts of the public service are preparing to hire. The Canada Revenue Agency (CRA) is seeking about 1,700 call centre staff to help handle the busy tax season. CRA aims to grow its call centre workforce to about 4,500 agents.
The Public Service Commission of Canada has also urged faster hiring processes in key areas that need more workers. Some departments struggle to compete with private-sector employment timelines, given average hiring durations of more than 200 days.
Balancing Cuts and Service Needs
Public service unions warn that workforce reductions could weaken essential services across the country. They argue that cutting staff in critical departments can slow government programs and reduce service quality for Canadians.
At the same time, certain agencies must recruit quickly for seasonal or essential services. This dual trend reflects a complex public employment environment in Canada as the federal government navigates fiscal constraints and evolving service demands.
