Prime Minister Mark Carney spoke in Ottawa on Sunday, September 14, 2025, to announce the new federal agency Build Canada Homes. The Canadian Press
Prime Minister Mark Carney reassured Canadians Sunday that any reduction in the federal public service will occur naturally through attrition. He spoke to reporters in Ottawa while announcing a new housing initiative.
Managing Workforce Through Attrition
When asked if the government would stick to the Liberal pledge to cap public service size, Carney said the government will “manage through” employees leaving their jobs.
“The cap relates to the overall level and the adjustments that will happen naturally through attrition,” Carney explained. “There’s a certain age cohort in the public sector. People leave employment, whether it’s in the public or private sector for a variety of reasons. Attractive opportunities outside, retirement on the other side. So we’ll be managing through that.”
Budget of Austerity and Investment
Carney has described the upcoming federal budget as a mix of “austerity” and “investment.” This has raised questions about potential job reductions, especially with billions planned for defence and tariff supports.
The Liberal platform also promises to protect programs like child care, dental care, and pharmacare, while eliminating $15 billion annually by 2028 to balance revenues with spending.
Government Officials Weigh In
Government House Leader Steven MacKinnon told a television interview that the budget will involve “tough choices,” but clarified that the spending review is not aimed at cutting jobs.
Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali asked ministers this summer to identify up to 15 per cent in operational savings over three years. Champagne said earlier this month that “there’ll be adjustments in different places,” fueling speculation about workforce reductions.
Public Service Spending Trends
A Parliamentary Budget Officer report in August estimated that the federal government will spend $71.1 billion on public service personnel in 2024–25, rising to $76.2 billion by 2029–30.
The public service has grown by more than 100,000 employees over the past decade, from 257,034 in 2015 to 357,965 in 2025. However, the workforce has shrunk by nearly 10,000 employees since last year.
