Government now eats 40.5% of Canada’s economy as public sector hits 21.5% of all jobs
Public sector jobs increasingly constitute an outsized percentage of the economy in Canada.
A new study shows government in Canada isn’t just growing — it’s taking up a massive and expanding share of the entire economy, while ordinary Canadians are falling behind.
According to the Fraser Institute, government spending now consumes roughly 40.5% of Canada’s GDP, a level that surged during COVID and remains stubbornly elevated years later.
At the same time, the public sector is rapidly expanding its footprint in the workforce. Government jobs now account for 21.5% of all employment in Canada — the highest level in decades.
And the growth isn’t slowing.
- 44% of all new jobs since 2019 have been in government, not the private sector
- The public sector added 950,000 jobs between 2015 and 2024, making up about 30% of total job growth
- Public sector employment has grown twice as fast as private sector employment since 2015
Meanwhile, Canadians themselves are not seeing the benefits.
Despite overall economic growth, GDP per person has actually declined by 2% between 2020 and 2024, marking one of the worst drops in living standards since the Great Depression.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.
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COMMENTS
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Bruce Atchison commented 2026-03-20 23:47:39 -0400Get this: government jobs don’t create wealth. Only private jobs and businesses do that.
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Lynne Osborne commented 2026-03-20 10:13:34 -0400The government (CRA) certainly gets 40% of my income but I can definitely say I would not pay for 60% of the services offered, what ever they are.
