Budget 2025 Ushers in a Transformational Era for Federal Public Service
The 2025 federal budget aims to reduce the size of the public service workforce while introducing incentives and new technologies to improve operations across government.
Workforce Reductions Planned
The budget promises to cut approximately 16,000 full-time equivalent positions over the next three years, which represents about 4.5% of the current federal workforce. Among these cuts, up to 1,000 executive roles will be eliminated. By 2028-29, the total reduction is expected to reach around 40,000 workers compared to the peak workforce size in 2023-24.
Early Retirement Incentive Program
One notable change is the introduction of a voluntary early retirement incentive (ERI) program through the Public Service Pension Plan. This program targets employees as young as 50 who have at least 10 years of employment and two years of pensionable service, making them eligible to apply.
Less Reliance on External Consultants and New AI Implementation
- The budget emphasizes reducing dependence on external consultants.
- A made-in-Canada artificial intelligence tool will be developed and deployed across the federal government to enhance efficiency and services.
Vision for the Future
"This is a transformational time for the public service to revisit how we work, how we can improve services to Canadians and how we can build for the future,"
— Budget document
Many of these changes will directly impact public servants in the National Capital Region, where the federal government stands as the largest employer.
Author's summary: Budget 2025 sets a course to reshape the federal public service through workforce reductions, early retirement incentives, and innovative AI tools, marking a significant shift in government operations.