Public Sector Growth Surges Under Trudeau While Private Sector Lags, Raising Economic Concerns

The number of workers in Canada's public sector has soared under Justin Trudeau's government, led by growth in the federal civil service. Meanwhile, private sector employment has weakened.

Economists warn this trend is not sustainable long-term for government finances or the economy. Public sector hiring may be masking weaknesses in the job market and weighing on productivity.

Reasons for the surge include demographics, the pandemic response, and new spending programs. But not all the growth can be easily explained.

It's unclear if Canadians are getting better services for the growing cost. Performance on government targets has been mixed, while public satisfaction has declined.

With deficits still elevated, there are signs the public sector expansion is slowing. But if private sector weakness persists, it could be a drag on the economy.