Job Cuts in Budget Worry Federal Public Service Unions
Federal public service unions criticize the Carney government's 2025 budget proposal, which includes thousands of job cuts, early retirement incentives, and increased use of AI. They warn these measures risk destabilizing the workforce and lowering service quality.
Proposed Workforce Reductions
The budget plans to eliminate 16,000 jobs over more than three years, starting next year, aiming to reduce the federal workforce to about 330,000 by March 2029. This would be approximately 40,000 fewer than the peak of 370,000 public servants recorded in March 2024.
As of March 2025, Canada had around 358,000 public servants nationwide, with over 40% located in the Ottawa-Gatineau region.
Government Perspective
Prime Minister Mark Carney’s administration states that if enacted, these cuts would streamline operations and free funds for reinvestment.
Union Leaders' Concerns
“Behind every cut is a service delay, a slower emergency response, or a system that’s one failure away from crisis,” said Sean O'Reilly, President of the Professional Institute of the Public Service of Canada (PIPSC). “These cuts don’t make us leaner — they make us more fragile.”
“When governments make big promises, somebody needs to deliver on them,” added Nathan Prier, President of the Canadian Association of Professional Employees (CAPE).
The unions argue that the proposed reductions will impair an already efficient public service system and undermine the government's ability to fulfill its commitments.
Summary: Federal public service unions warn that the 2025 budget’s proposed job cuts and AI expansion threaten workforce stability and service quality, risking a fragile and less effective public sector.
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