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Time of India
5 days ago
- Business
- Time of India
Government job cuts could reach 57,000 as Ottawa slashes spending
Canada's federal public service may face significant job cuts. A report projects up to 57,000 positions could be eliminated by 2028. This follows government directives for spending reductions. Departments like the Canada Revenue Agency may be affected. The Ottawa-Gatineau region is expected to be heavily impacted. The government aims to streamline operations. Previous cuts have already reduced federal employment. The federal public service could lose up to 57,000 jobs by 2028 as Ottawa orders sweeping spending cuts, with key departments and the National Capital Region expected to be hardest Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The federal public service in Canada could shrink dramatically over the next four years, with a new report forecasting up to 57,000 job cuts by 2028. The report, released Thursday(July 24) by the Canadian Centre for Policy Alternatives (CCPA), comes as the federal government pushes for sweeping spending reductions across cuts stem from a directive issued earlier this month by Finance Minister François-Philippe Champagne , who instructed cabinet ministers to identify 15 percent in program spending reductions by the 2028–29 fiscal projected layoffs would affect a wide swath of federal departments, including the Canada Revenue Agency, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada, all of which have already seen declining staff numbers in recent warned that Canadians should expect longer wait times, higher error rates, and reduced capacity to resolve service issues. The Ottawa–Gatineau region, which hosts nearly half of Canada's federal workforce, is expected to take the hardest federal government says the cuts are part of a broader effort to 'return to core responsibilities' while maintaining fiscal discipline. Barb Couperus, spokesperson for the Treasury Board of Canada Secretariat, confirmed that a lower 2 percent savings target will apply to the Department of National Defence, the RCMP, and the Canada Border Services like the Office of the Auditor General and Supreme Court Registrar are exempt due to their independent emphasized that ministers have been instructed to review all spending in their portfolios and prioritize programs that are core to the federal mandate, avoiding duplication with other levels of government. Statutory transfers to provinces and individuals will be maintained, but most other spending, including Crown corporations, is subject to job reductions follow an earlier round of cuts introduced in Budget 2023, which are expected to reach peak impact by 2026–27. Federal employment already fell by nearly 10,000 workers in 2024, dropping from 367,772 to 357, Minister Mark Carney had promised during the spring election campaign to 'cap' but not cut public service employment. However, the commitment was always likely to give way to real reductions, especially after the government committed to large-scale defence spending and tax cuts report also suggests that departments may offer retirement buyouts and eliminate term and casual positions, potentially impacting younger and newer workers disproportionately.
Toronto Sun
5 days ago
- Business
- Toronto Sun
Number of federal public service jobs could drop by almost 60,000, report predicts
Published Jul 24, 2025 • 1 minute read Canada Revenue Agency national headquarters on Mackenzie Avenue in Ottawa. Photo by Errol McGihon / POSTMEDIA 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. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account Earlier this month, Finance Minister Francois-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.' Sports Ontario Wrestling World Canada
Hamilton Spectator
18-07-2025
- Business
- Hamilton Spectator
Carney budget cuts could hit Indigenous communities, veterans, report warns
OTTAWA — The Carney government's plan to cut around $25 billion from the federal budget in three years could bring deep cuts to money set aside for provinces and municipalities for public services, as well as funding for Indigenous communities, veterans, newcomers, research and foreign aid, a new report warns. The analysis released Thursday from the progressive Canadian Centre for Policy Alternatives suggests such cuts could be unavoidable under the Liberal government's plans , which are nearly double what they promised during the spring election campaign, raising questions about why Prime Minister Mark Carney did not make the extent of those plans clear then. So far, no final decisions on cuts have been made yet, and the federal government has asserted that it would target programs that are 'underperforming, not core to the federal mandate, duplicative, or misaligned with government priorities,' despite warnings that the proposal could lead to job losses and service cuts. 'Half of these 'savings' are just cuts to somebody else, right? So it's not like you are cutting your own staff or your own professional services utilization,' economist David Macdonald, the author of the report, said in an interview. 'You're just pushing the problem onto somebody else's lap, whether that's veterans for disability supports, whether that's province or municipalities, whether it's First Nations governments, and then it's their problem to make cuts to their social services or health-care programs or whatever to make up for what you cut to them.' Many government departments would have no choice but to make such cuts because the vast majority of their spending goes toward transfer payments to other levels of government or organizations, says the report, which examined the roughly $190 billion pool of funding the federal government said is under review. The findings came as Carney, who met Thursday with First Nations leaders from around the country in Gatineau for a summit on the contentious major projects law the government fast-tracked through Parliament, faces significant pushback from Indigenous groups already frustrated over the lack of consultation by the government. Cindy Woodhouse Nepinak, the national chief of the Assembly of First Nations, called on Carney to exempt transfers to First Nations from the coming federal cuts. While the government has said statutory transfers to provinces and individuals, like the Canada Health Transfer and the Canada Child Benefit, are exempt, funding for First Nations is not. In Ottawa, First Nations chiefs who gathered to protest the summit also slammed the government's proposed cuts. 'We manage poverty as leaders of our nations,' Chief Gary Lameman of Beaver Lake Cree Nation said. 'To hear that we're going to be getting more cuts to our programs is devastating.' Under the federal government's plan, which comes amid a pledge to 'spend less' and 'invest more' while committing tens of billions of dollars more to the military and cutting income taxes, nearly all government departments and federally funded organizations and Crown corporations are expected to propose 'savings' of up to 15 per cent of their spending in the next three years. Thursday's report suggests that more than half of the cuts will come from transfer payments to other levels of governments, non-profits and businesses, with one in five of the dollars cut being from money that now goes to First Nations governments for education, health care, policing and community infrastructure. Indigenous Services Canada has already warned staff that meeting its targets will impact jobs and programs, CBC has reported. Nearly $1 billion could come from income, disability and other health-care supports for veterans. Another $800 million could come from international aid, while around $500 million could come from both newcomer supports and research and science funding. Indigenous Services Minister Mandy Gull-Masty attempted to downplay those concerns on Thursday, saying it's her duty to offer the 'greatest level of service and program delivery' possible. 'For me, that means efficiency and refining that service delivery,' Gull-Masty told reporters. 'To me, that doesn't mean what I think the story is in the media right now.'
Toronto Star
18-07-2025
- Business
- Toronto Star
Carney budget cuts could hit Indigenous communities, veterans, report warns
OTTAWA — The Carney government's plan to cut around $25 billion from the federal budget in three years could bring deep cuts to money set aside for provinces and municipalities for public services, as well as funding for Indigenous communities, veterans, newcomers, research and foreign aid, a new report warns. The analysis released Thursday from the progressive Canadian Centre for Policy Alternatives suggests such cuts could be unavoidable under the Liberal government's plans, which are nearly double what they promised during the spring election campaign, raising questions about why Prime Minister Mark Carney did not make the extent of those plans clear then.
16-07-2025
- Business
Income inequality hit record high at start of 2025, Statistics Canada says
The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year. It's not a surprise, said Katherine Scott, a senior researcher focused on gender equality and public policy at the Canadian Centre for Policy Alternatives. Scott said the current economic uncertainty is contributing to a lot of economic distress, in particular for young people seeking employment. Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. For the first quarter of 2025, it said the increase came as the highest-income households gained from investments, while the lowest-income households saw wages decline. Scott said many individuals at the higher end of the income scale didn't see their incomes decline during the pandemic, with many staying in their jobs. But more importantly, they were in a position to take advantage of the huge run-up of the investment markets that happened at that time and have continued to increase ever since, Scott said. Disposable income gap widens Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago, as their average wages edged down 0.7 per cent. The lowest-income households also saw the largest drop in net investment income as their earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent. The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group as they benefited from a 7.7 per cent increase compared with a year earlier. The highest-income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income. Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canadians' total net worth in the first quarter, averaging $3.3 million per household. The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household. Scott highlighted that following the 2008-09 recession, there was a real discussion regarding rising income inequality, which doesn't appear to be taking place currently. This kind of information, the largest gap ever, it's a wake-up call. We can't sustain it, we have to pay attention to the structure of our economy and the distribution of that, she said. We have to grow the pie, but we have to talk about the distribution of the pie. It matters that people are able to live a decent quality of life with dignity. I think that's a really important public policy goal, which seems to be lost in the current conversation.
