For the second consecutive year, the federal public service has recorded a decrease in employment, reversing a decade-long trend of expansion. According to data released this week by the Treasury Board of Canada Secretariat, the number of federal public servants stood at 345,282 at the end of March 2026, down from 357,965 in March 2025 — a reduction of 12,683 positions, or just over 3.5 per cent.
Two-year decline totals 22,490 workers
The latest drop follows a similar reduction from the previous year. In March 2024, the government employed 367,772 federal public servants. The combined decrease over two years amounts to 22,490 workers, representing a 6.1 per cent decline. Canada's population also fell slightly between March 2025 and March 2026, by just over 132,000 people to 41.47 million. As a result, the percentage of Canadians employed by the public service declined to 0.83 per cent from 0.86 per cent.
Uneven impact across departments
Not all departments experienced the same reductions, and some actually added positions. The Department of National Defence saw an increase of 2,717 employees, reaching 31,838 in March 2026 — a rise of just over nine per cent from the previous year. The Communications Security Establishment also grew, from 3,686 to 4,029 employees. Correctional Service Canada and the RCMP remained nearly flat in terms of staffing levels.
The largest drop occurred at the Canada Revenue Agency (CRA), which shed 3,725 workers over the year to stand at 48,774 in March 2026, a seven per cent decline.
Carney government's 40,000-job reduction target
Prime Minister Mark Carney's government, in its first budget released last November, projected a decline of about 40,000 federal public service jobs by the end of the 2028-29 fiscal year. This includes positions already eliminated since the public service peaked in 2023-24. The plan aims to bring total employment down to approximately 330,000 by 2028-29.
The Professional Institute of the Public Service of Canada (PIPSC) has voiced opposition to the cuts. In a statement issued in March, PIPSC warned that reducing staff at the CRA would weaken the government's ability to enforce tax laws and recover lost revenue. PIPSC President Sean O'Reilly said, “These are the people who make sure everyone pays their fair share. Cutting them doesn't save money. It costs money.”
