Canada’s Federal Public Service Shrinks for Second Consecutive Year
The federal public service has recorded a second straight year of job losses, breaking a decades-long pattern of growth in the ranks of Canada’s public employees.
As of the end of March 2026, the federal government employed 345,282 public servants, down from 357,965 the previous March. That represents a decline of 12,683 positions, or just over 3.5 percent, according to figures released this week by the Treasury Board of Canada Secretariat.
A Two-Year Decline of More Than 22,000 Jobs
The latest drop follows a similar contraction the year before. In March 2024, the headcount stood at 367,772, meaning the combined decline over two years totals 22,490 workers — a decrease of 6.1 percent. Over that same period, Canada’s population also fell slightly, dipping by just over 132,000 people to 41.47 million between March 2025 and March 2026. As a result, the share of Canadians employed in the public sector slipped from 0.86 percent to 0.83 percent.
Not All Departments Are Shrinking
While the overall numbers moved lower, the picture varies considerably from one department to the next. The Department of National Defence, for instance, added 2,717 employees over the year — a gain of just over nine percent — bringing its workforce to 31,838. The Communications Security Establishment saw a similar upward trajectory, growing from 3,686 to 4,029 staff.
Correctional Service Canada and the RCMP held relatively steady in headcount. Meanwhile, the Canada Revenue Agency (CRA) experienced the single largest reduction, shedding 3,725 employees over the year to land at 48,774 in March 2026 — a seven percent decline.
Government Targets Further Reductions Through 2028-29
When Prime Minister Mark Carney’s government tabled its first budget last November, it outlined plans for a “reduction of approximately 40,000” federal public service positions by the end of the 2028/29 fiscal year. That figure includes jobs already eliminated since the public service reached its peak size in 2023-24. The stated goal is to bring the total down to roughly 330,000 employees by 2028-29.
Union Warns CRA Cuts Could Cost Revenue
The plan has drawn pushback from public sector unions. In March, the Professional Institute of the Public Service of Canada (PIPSC) issued a statement cautioning that reducing staff at the CRA would undermine the government’s ability to enforce tax laws and recover lost revenue.
“These are the people who make sure everyone pays their fair share,” said PIPSC President Sean O’Reilly. “Cutting them doesn’t save money. It costs money.”
