B.C. budget: 15,000 public sector jobs to be cut over 3 years

Despite across-the-board tax increases and thousands of public sector job cuts, B.C.'s budget is still filled with red ink.

The B.C. budget put forward Tuesday includes a plan to “right-size” the public sector by slashing jobs and spending over the next three years.

In total, 15,000 full-time-equivalent positions are set to be eliminated by the end of the 2028/29 fiscal year, which the province says will translate to savings of $2.85 billion.

According to the government, the cuts will not be aimed at front-line services and efforts to hire workers in education and health-care will not cease.

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An estimated 2,500 of the full-time jobs will be cut from the B.C. Public Service, which staffs core government offices and ministries. School districts, health authorities, Crown corporations, and post-secondary institutions are examples of other public sector organizations from which the remaining 12,500 positions will be cut.

“As part of the reductions in the public sector, government will be developing specific targets to reduce the number of executive positions, with a focus on Crown corporations and the health sector,” the budget document says.

The number of full-time-equivalent jobs in the public sector has increased by 80,000 since 2020, according to the province, and these cuts represent roughly 3.4 per cent of the workforce.

“To the greatest extent possible, these reductions will be achieved through attrition and voluntary departures,” the budget document said.

“However, additional measures, such as early retirement and voluntary severance incentives may be necessary to help support the transition to a leaner core public service.”

Savings from additional “expenditure management” are projected to amount to $3.51 billion over three years. Provincial reviews already underway of health authorities and post-secondary institutions are two examples the finance ministry provided of how the government is scrutinizing spending while working to improve efficiency.

Government ministries and public sector employers will be expected to review spending—with consulting fees, overhead, and administrative costs identified as areas where potential savings can be found.

Detailed “sector-specific” targets will be set as a result of these reviews, and updates will be provided on progress through the government’s quarterly financial reports.

The budget projects $85.5 billion in revenue and $98.8 billion in spending, sending the deficit ballooning to $13.3 billion.