Canada is in danger of becoming a bureaucratic state, where the government eats an ever-growing share of the economy. This trend has been accompanied by a productivity crisis and regulatory uncertainty, which has discouraged entrepreneurs and investors. Midway through 2025, however, there is a glimmer of hope that the ship could be turning around.
For the first time in a decade, the size of the federal public service shrank over the past year, shedding nearly
. It is a small step towards correcting the excessive, ideologically driven growth of the Canadian government during the Trudeau era.
Ideally, the public service would grow as needed to provide the infrastructure and services to accommodate a growing economy and population. This is the basis for an efficient and responsible government that can fulfill its core duties.
Yet too many bureaucrats and elected officials in both Ottawa and the provinces believe that government should instead be a mechanism for creating jobs out of thin air, and that creed is poisoning our economy.
Between 2016 and 2024, the number of people employed in the federal public service grew by
. Meanwhile, Canadian government expenditures grew to
of GDP in 2023, compared to 36 per cent in the United States.
Massive spending increases since 2015 have
longer surgical wait times and rising crime. There is a clear preference for quantity over quality in the Canadian government, and that is both wrong-headed and expensive for the citizens who fund it with their taxes.
For example, in a column published in the Globe and Mail on Monday, Andrew Coyne
that 20 years ago, the Canada Pension Plan Investment Board employed just 150 people, at a frugal cost of $118 million a year. Today, over 2,100 people work at the CPP Investment Board, which now costs over $6 billion annually and produces middling results at best.
Former prime minister Justin Trudeau’s government turned the public service into a glorified white-collar welfare program. Rather than trying to foster economic growth and attract investment, the Liberals apparently figured they could provide the jobs Canadians were seeking.
Unsurprisingly, many of Trudeau’s top
, staffers and
cut their teeth during Dalton McGuinty’s premiership of Ontario between 2003 and 2013. During McGuinty’s time as premier, the number of public-sector jobs rose by
, while the private sector grew by less than six per cent.
This trend only strengthened during the pandemic. Between 2019 and 2023, federal and provincial government employment
in Canada, while private-sector employment increased by less than six per cent. In total,
were added to the public service.
During an economic crisis, public works can be an effective way to boost employment and leave lasting, monumental pieces of infrastructure. Instead, COVID only gave birth to thousands more managers, pencil-pushers and assistants who were not needed prior to the pandemic, and certainly not after its conclusion in the midst of Canada’s
.
Among the provinces, British Columbia stands out as the most enthusiastic collaborator of this bureaucratic regime. Between 2019 and 2023, the number of government jobs in B.C. grew by
, while private-sector job growth stood at a paltry 0.5 per cent.
As in Ottawa, B.C. has a two-tier system, as most government jobs are reserved for credentialed managers and post-secondary graduates. On the other hand, blue-collar workers in forestry and mining have seen their
as government regulations and taxes destroy jobs in those sectors.
In April, the province’s credit rating was
for the fourth time in four years, cut from AA- to A+ by S&P due to “a lack of a credible medium-term plan outlining how the province will tackle its structural budgetary shortfall.”
With health-care wait times
and public-school class sizes ballooning, British Columbians have gotten little in return for the money spent on their behalf. In many ways, B.C. and its troubled resource economy is a microcosm of the same issue that is affecting the rest of the country.
It does not have to be this way, and the Canadian economy need not be defined by its bureaucrats.
There is a
of critical minerals and other valuable natural resources in Canada that could lead to an economic renaissance, but only if Ottawa and the provinces follow through on their pledges to
in the “national interest.”
Becoming a dominant supplier of critical minerals to the world should be a pillar of Canada’s destiny. That is well within reach, but only if the Liberal government commits itself to becoming a useful partner of the private sector, rather than trying to permanently encroach upon it.
For example, infrastructure is required for Canada to be able to extract many of the resources in the
and other remote regions. The private sector may still be reluctant to undertake that given the costs and the risks, even if the federal government creates a less hostile environment for mining and mineral exploration.
Investing public money into building up that infrastructure could employ thousands of blue-collar Canadians who have been mostly shut out of the decade-long public hiring spree, and who could help open the door to Canada’s future as a stronger, mineral-exporting giant.
A bureaucratic regime will never lead to a better country, and terminating the fantasy of it will not be painless. Nonetheless, it will be necessary if Canada is to become a happier, more prosperous and fairer country for all.
National Post