Think tank calls for ‘Chretien-style’ review of federal public service, resulting in thousands of job cuts

A federal office tower in Ottawa. Aug. 2, 2021. (Jackie Perez / CTV News Ottawa)

A Montreal-based economic think tank is calling on the federal government to eliminate tens of thousands of public service jobs as part of a massive review of federal programs and services.

The Montreal Economic Institute (MEI) released a report Thursday morning, calling for a “Chretien-style” review of the federal public service, which would result in the elimination of 64,000 public service jobs and reduce spending by $10 billion.

“If it is serious about reining in spending and controlling the size of its bureaucracy, Ottawa should take a page from the Chrétien government’s 1994 Program Review,” MEI said in a statement.

• Here’s a look at the campaign promises for the federal public service in the 2025 federal election

According to the Treasury Board Secretariat, there were 367,772 federal public servants across Canada in 2024, up from 257,000 in 2015.

During the election campaign, Prime Minister Mark Carney’s Liberal campaign platform “committed to capping, not cutting” public service employment. The Liberals promised a “comprehensive review of government spending in order to increase the federal government’s productivity.”

The MEI paper, written by Conrad Eder, says, “The size of the Canadian public service once again requires attention” following the “significant expansion of the federal bureaucracy” under former prime minister Justin Trudeau.

“Despite the government belatedly acknowledging the need to restrain the growth of the federal bureaucracy, more decisive action is required,” the report says.

Eder says Prime Minister Mark Carney’s government should “look to the 1994 Program Review” by the Chretien government as a “model for reform.”

“The government should adopt a thoughtful approach to ensure workforce reductions are strategic by combining voluntary departures and natural attrition with targeted reductions,” Eder writes.

The MEI paper says the results of the 1994 federal program review resulted in the reduction of the federal workforce by 42,000 jobs from 1994 to 1999, “using strategies such as voluntary exit incentives, natural attrition, privatization of services, and delegation of program responsibilities to other levels of government.”

According to Statistics Canada, the size of the federal public service dropped 29,000 employees in 1996.

“Achieving similar results today - a 17.4 per cent reduction in the size of the federal workforce over five years—would decrease the number of federal employees by approximately 64,000, effectively restoring the federal public service to its relative size prior to Justin Trudeau’s election as prime minister,” Eder writes. “Fully implemented, these workforce reductions would permanently lower federal government spending by nearly $10 billion a year.”

“By drawing inspiration from the Chrétien government’s program review, Canada can rein in its federal workforce, eliminating tens of billions of dollars in federal spending, while laying a solid fiscal foundation for the sustained economic prosperity of Canadians.”

• Federal public service union says Carney needs to invest in employees

Canada’s largest public sector union has called on Carney and his new cabinet to make public services a “top priority” for the new session of Parliament.

The Public Service Alliance of Canada (PSAC) says it will advocate for “strong, well-funded public services,” and “modern, inclusive and evidence-based remote work policies.”

“This is a pivotal moment for our new government as workers in Canada face a cost-of-living crisis and families grapple with the impact of tariffs on our jobs and economy,” Sharon DeSousa, PSAC national president, said in a statement this week. “Protecting the public services people rely on has to be at the heart of everything we do, and cabinet has a vital role to play in strengthening our public service and supporting the workers who deliver them.”

The federal Liberals’ 2024-25 budget called on the government to eliminate 5,000 public service jobs over four years.