Canada’s public sector has taken on a much larger share of the country’s workforce over the past decade, according to new research from the Fraser Institute.
A study led by Jason Childs, economics professor at the University of Regina and a senior fellow with the institute, outlines how government employment has expanded significantly faster than jobs in the private sector.
Between 2015 and 2024, federal, provincial and municipal governments added 950,000 jobs, representing 30% of all employment growth during that period. Public-sector employment grew at an average of 2.7% annually, compared to 1.7% in the private sector. As a result, the public sector’s share of total employment rose from 19.7% in 2015 to 21.5% in 2024.
The report notes that this pattern held in every province except Manitoba, where private-sector job growth slightly outpaced the public sector. The widest gaps were recorded in Newfoundland and Labrador, New Brunswick, Quebec and British Columbia, while Alberta and Prince Edward Island saw the narrowest differences. In Atlantic Canada, nearly 30% of all workers are now employed in the public sector; in Alberta, the figure stands at 18%.
A companion study, also authored by Childs, highlights especially rapid growth in public administration roles, positions often found in government ministries and agencies that do not directly provide front-line services. These jobs increased by 328,200 over the decade, growing at 3.5% per year on average and accounting for one-third of all public sector job growth.
The report says the expansion carries fiscal risks, particularly given Canada’s weak productivity and ongoing deficits. It warns that the increasing share of employment in lower-productivity government roles may be contributing to the country’s broader economic challenges.
According to the studies, reducing the size of the public sector workforce, both in absolute terms and as a share of total employment, will likely be necessary to improve long-term fiscal sustainability.