Government Jobs Increase Three Times More Than Private Sector During COVID-19 Pandemic, Finds Report

According to a recent report, Canadian public sector jobs grew by 13 percent during the COVID-19 pandemic, whereas the private and self-employed sectors only saw a growth of 3.6 percent.

Fraser Institute senior fellow Ben Eisen, who co-authored the report, stated, “Canada’s job creation has been predominantly driven by government employment rather than the private sector.”

Eisen and co-author Milagros Palacios highlighted that government employment as a share of total employment is currently at its highest level since the 1990s, with public sector job growth surpassing that of the private sector in recent years.

They noted, “The current economic recovery heavily relies on government job growth, which is unusual compared to past economic recessions and slowdowns.”

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In Manitoba, public sector jobs grew by 10.6 percent, while the private sector saw a growth of 7.8 percent.

Quebec experienced a 10.8 percent increase in government jobs and a 4.7 percent increase in the private sector.

Ontario’s public sector job growth was three times that of the private sector, with government employment increasing by 14.6 percent compared to 4.8 percent in the private sector.

British Columbia saw a 22 percent growth in the public sector and a marginal 0.5 percent increase in the private sector.

New Brunswick reported a 19.7 percent increase in public sector jobs, while the private sector only saw a 3.9 percent increase.

In PEI, public sector jobs grew by 25.5 percent, while the private sector grew by 7.7 percent.

Newfoundland and Labrador had a 7.2 percent increase in government employment and a 0.6 percent increase in private sector employment.

Saskatchewan added 15.8 percent more public sector jobs compared to a 3.6 percent increase in the private sector.

However, there were exceptions to this trend. Nova Scotia saw a 4.7 percent increase in government employment, while the private sector grew by 7.7 percent. In Alberta, the public sector expanded by 4.4 percent, while the private sector saw a 9.2 percent growth.

US Comparison

The report also compared Canadian job growth with the United States, highlighting significant differences between the two countries.

“In the United States, the private sector has been the primary source of new jobs, with nearly equal job creation rates in the private and government sectors,” the report noted.

Between 2019 and 2023, the public sector accounted for 46.7 percent of total job growth in Canada, while in the US, it represented only 16.1 percent.