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Are public service jobs tariff proof?

Are public service jobs tariff proof?

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Since then, Immigration, Refugees and Citizenship Canada has announced it will slash 3,300 jobs over three years.

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The size of the public service grew significantly during the first years of the COVID-19 pandemic. According to Treasury Board data, the public service’s headcount expanded to 367,772 workers in 2024 — up from 300,450 in 2020.

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Experts agree that too many variables remain unknown to be able to forecast what changes are in store for public servants once Canada weathers Trump’s tariff storm. What party forms government and whether it has a majority or minority in the House of Commons could alter the direction of the public service.

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While Carney and Poilievre have both said spending needs to be reined in, they’re sending slightly different signals about how they would approach reforms to the public service. Poilievre’s party has mused about being able to cut 17,000 jobs annually by not hiring replacements for the workers who leave the public service each year. Meanwhile, Carney has signalled his intentions to cap the size of the public service, create efficiencies with artificial intelligence and balance the operational budget within three years.

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“Ultimately, the major force shaping the future of the public service will be politics and the political outcome,” Michael Wernick, the Jarislowsky Chair in Public Sector Management at the University of Ottawa and formerly Canada’s top civil servant, told the Ottawa Citizen.

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For Wernick, Canada is charting new territory under Trump’s tariffs and threats of annexation. An existential threat to the federation had not been seen since the 1995 Quebec referendum, Wernick added.

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“This isn’t about, you know, the economic impact of some tariffs on cars and soybeans; this is about whether we’ll be a country five years from now.”

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It’s left public servants staring down what could be two existential threats: the barrel of Washington aggression that all Canadians face; and potential cuts to the public service that a new majority government could take once the danger of Trump’s tariffs is over.

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But Savoie says it’s a natural part of the public service’s cycles that a program review take place after a decade, particularly as a new leader is set to come into power in Ottawa.

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“They will arrive with their own agenda and their own priorities, and they will need to finance what they want to do, that in itself, calls for a program review,” Savoie said.

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Still, with the double uncertainty public servants are under from the changing guards in Washington and Ottawa, it remains a question of what the next years will bring. Former program reviews from the Liberals in the 1990s saw a reduction of the public service by around 20 per cent, while in 2011 cuts under the government of Stephen Harper saw a reduction of about 10 per cent, Wernick said.

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Savoie acknowledges that being a public servant is “not easy,” especially when they see Trump advisor Elon Musk wielding a loud chainsaw at American government workers’ livelihoods.

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“A sledgehammer or chainsaw is not the way to do it, in my view,” Savoie said. “But who knows?”

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With files from Catherine Morrison

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Canada is at an economic crossroads. The FP Economy: Trade Wars newsletter brings you the latest developments from the Financial Post and across the Postmedia network every weekday evening at 7 p.m. ET. Sign up for free: https://financialpost.com/newsletters/

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