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Federal public service has lost 23,000 staffers in two years: budget watchdog report
The watchdog’s new tracker says 9,505 workers were cut in one year, with most losses hitting permanent positions.
On Tuesday, Sept 15, 2026, the Office of the Parliamentary Budget Officer released a tracker estimating 344,970 federal employees in the second quarter, down 6.5 per cent from two years earlier after shedding more than 23,000 staffers.
Government efforts to shrink the public service, as outlined in Budget 2025, drove this contraction through an early retirement program that processed more than 9,400 successful applications from 10,006 submissions.
Parliamentary Budget Officer Annette Ryan noted that 90 per cent of job cuts over the last year eliminated permanent positions, marking a shift from earlier reductions that targeted term, casual, and student workers.
Employment and Social Development Canada cut 3,221 workers, the largest reduction, while National Defence and the Canadian Space Agency each grew their headcounts, creating divergent staffing patterns across departments.
Ryan designed the tracker to provide parliamentarians with objective, timely data to review employment changes and question Ministers about the impact of these workforce reductions on public services to Canadians.