The federal government has heralded the largest decline of any kind in its public service workforce. Their total payroll went down employee by employee from 367,772 to 357,965 in a single year. This reduction amounts to a historic reduction of almost 10,000 employees. It was indicative of the broader issue that government departments and agencies are dealing with as they prepare for increasing operational costs and extreme fiscal pressures.
The majority of job losses occurred in short-term positions. From 2024 to 2025, about 8,000 workers were terminated. In addition, the government experienced a loss of about 3,000 casual workers and 1,750 student staff. This troubling trend puts the long-term health of the federal workforce and its ability to provide quality public services at risk.
Notably, more than three-quarters of those who exited the federal public service last year were under the age of 35. Of those, 4,413 workers were 25 to 29 years old and 3,354 were 20 to 24. Among these losses were 563 workers between the ages of 30 and 34 and 246 employees younger than 20 years old. This dramatic generational shift is perhaps one of the most critical long-term determinants of the public service’s recruiting and retaining future talent.
Sure, the total number of employees went down, but the stable, permanent federal public service was on an overall upward trajectory. It lost over 40,000 employees during that period. The 2024 budget projections bring some very bad news. The government still plans for a net loss of an additional 5,000 full-time jobs over four years. This long-awaited cut matches perfectly with the federal government’s plan to rein in the operating costs as fiscal pressures continue to build.
In dollar amounts, to put it into perspective, the federal government spent $43.3-billion on the salaries of public servants in the fiscal year 2023-24. When counting additional employee compensation as well like pensions, overtime and bonuses, total expenditures ballooned to $65.3 billion. The average salary for a full-time public servant clocked in at $98,153 in 2023.
Beginning April 1, 2025, departments and agencies will face escalating operational costs. They will be expected to absorb these higher costs by stretching their existing funds. This unfunded requirement further complicates the development and implementation of effective workforce management strategies, likely forcing even more staffing cuts.
Lori Turnbull, a political science expert, pointed out that many contract positions serve as pathways for individuals entering the public service. The elimination of these jobs might needlessly slow the entrance of new talent into the labor market.
David McLaughlin, another expert in public administration, emphasized the implications of letting go of younger employees: “If you’re paying people out, they don’t require big packages, so they are the easiest, cheapest employees to let go.” He further cautioned about the long-term risks associated with this trend, stating, “You run the longer-term risk by letting go younger people who may be dedicating their careers to public service.”
The effective size of the federal public service has expanded considerably since its last major contraction in 2015. In that one year, employment fell by 104 from 257,138 to 257,034. This recent decline signals a renewed need for strategic planning to ensure that remaining staff can deliver essential services effectively while maintaining morale amid uncertainty.
