Why 15% Cuts Could Cost Canada Everything

The federal government is barreling ahead with a plan that could reshape the public service for a generation — and not in a good way. Prime Minister Mark Carney has tasked departments with cutting 15% of their program spending by 2028–29. On paper, it’s being sold as “finding efficiencies.” In reality, it’s carving deep into the backbone of the public service — and by extension, the Canadian economy.

These cuts come at a time when we should be mobilizing every resource we have to respond to global threats like inflation, climate instability, and rising protectionism from our largest trading partner. Instead of standing together, we’re turning inward — and turning on the very workers who hold this country together.

Thousands of Jobs, Gone

We’re already seeing the fallout. Nearly 12,000 federal public service jobs have been cut so far in 2025, and that number is expected to climb to 57,000 by 2028. Departments like CRA, Immigration, and ESDC — the ones Canadians rely on every day — are being told to do more with much, much less.

These aren’t abstract numbers. These are jobs in our communities. These are the people processing your EI claim, your pension, your tax refund. These are the folks keeping food safe, inspecting borders, supporting veterans, and helping newcomers settle into Canadian life. And now they’re being told they’re expendable.

Services Will Suffer

We’ve seen this movie before — in the 1990s, when Paul Martin’s budget cuts gutted social programs and hollowed out departments. It took decades to rebuild, and some parts of the system never fully recovered.

Cutting 15% of program spending in today’s context means slower services, longer wait times, and reduced capacity to respond to emergencies. It means fewer audits at CRA, fewer support staff in immigration, and fewer frontline workers delivering services to the most vulnerable. And all this while our population is growing, our needs are increasing, and the world is becoming more unpredictable.

A Blow to the Economy

Let’s be clear: slashing public service jobs is not just a hit to the workers affected — it’s a blow to the entire Canadian economy.

Public service workers pay rent, buy groceries, shop local, and contribute to their communities. When you cut tens of thousands of good-paying, stable jobs, you pull millions of dollars out of the economy. Local businesses feel it. Municipal services feel it. Families feel it.

And the kicker? Outsourcing the same work to private consultants often ends up costing more, not less. Studies have shown that privatization and contracting out can increase costs by 20% or more. So we lose the jobs, we lose the expertise, and we don’t even get the savings we were promised.

At the Worst Possible Time

The timing couldn’t be worse.

With Trump’s habit of imposing new tariffs seemingly every other week, Canada needs every ounce of institutional muscle it can muster. Fighting tariffs isn’t just a matter of diplomacy — it takes public servants: trade lawyers, customs officers, policy analysts, and program administrators who help affected workers and businesses navigate the fallout.

This is where the contradiction becomes impossible to ignore. We’re slashing the very public service jobs that would be needed to protect our economy from external shocks. It’s like gutting your fire department because you haven’t seen a blaze — while smoke rises on the horizon.

Labour is Speaking Out

Unions across the country are raising the alarm.

PSAC National President Sharon DeSousa summed it up in a recent op-ed:

“The growing threats by U.S. President Donald Trump to Canada’s economy, security and sovereignty will impact all of us. In times of uncertainty, workers and families rely on public services more than ever.” – PSAC National President, Sharon DeSousa

She’s right. If we want to weather what’s coming — from trade disruptions to climate disasters — we need a fully staffed, well-resourced, and empowered public service.

CUPE, UTE, and other unions have echoed that message. They’ve also pointed out better ways to find savings:

• End costly return-to-office mandates that don’t improve productivity.
• Cut back on private consultants who charge inflated rates for work public servants can do better.
• Stop the relentless contracting out of core government services.

These are real solutions that don’t involve pink slips or gutting service delivery.

The Stakes Are Too High

This isn’t just about jobs — though the jobs matter. This is about the future of our public institutions. It’s about whether we still believe in government’s ability to serve people. It’s about whether we face crises with collective strength or retreat behind broken ideologies of austerity.

Because the truth is, we can’t cut our way to prosperity. And we certainly can’t fight U.S. protectionism by turning against our own workforce.

We need to push back — not just in bargaining rooms, but in the court of public opinion. These cuts don’t serve the public. They don’t build resilience. And they don’t reflect the kind of country we claim to be.

So let’s call this what it is: a political choice with devastating consequences. One that undermines workers, weakens public services, and leaves Canada exposed at a time we should be united.

We can still change course. But only if we raise our voices now — before 15% becomes everything.