Prime Minister Mark Carney says any reductions to the federal public service will be done gradually through attrition, not mass layoffs, as his government prepares its first budget.
Speaking at a housing announcement in Ottawa on Sunday, Carney reaffirmed the Liberals’ campaign promise to cap — but not cut — the public service, saying the workforce will be “managed through” as employees retire or leave for other opportunities.
“The cap relates to the overall level and the adjustments that will happen naturally through attrition,” Carney said. “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 … so we’ll be managing through that.”
The prime minister’s comments come as his government faces pressure to rein in spending while funding new commitments, including billions for defence and tariff relief programs. Carney has described the upcoming fall budget as a mix of “austerity” and “investment,” sparking questions about whether public sector jobs would be on the chopping block.
Government House Leader Steven MacKinnon echoed Carney’s message on CTV’s Question Period, emphasizing that the spending review is not being done “with a view to reducing head count.” Finance Minister François-Philippe Champagne and Treasury Board President Shafqat Ali have instructed ministers to find up to 15 per cent in savings over the next three years.
The federal workforce has grown by more than 100,000 employees since 2015 but has already seen a reduction of nearly 10,000 positions in the past year, according to the Parliamentary Budget Officer. Personnel costs are projected to rise from $71.1 billion in 2024–25 to $76.2 billion by 2029–30.