Department of Employment increases consultant spending after PM vows to cut it

It's estimated the feds spend $25 billion yearly on consultants

Published Aug 24, 2026  •  2 minute read

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Even after Prime Minister Mark Carney promised to cut consultant spending by 20%, records show the Department of Employment spent 10% above average in 2025, reports Blacklock’s Reporter.

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The department, one of the biggest federal spenders on consultants, spent $998.5 million last year and most recently defended doing so.

The same department had a six-year average expenditure on consultants of $910 million.

“We are reducing the size of the public service by 10% and cutting management consultants by 20%” Carney said last November.

“A series of tough, responsible choices will save Canadian taxpayers a total of $60 billion by restructuring operations, consolidating internal services and right-sizing programs.”

However, the Department of Employment Briefing Binder defended consultant hiring in an April 21 Briefing Binder.

“What is the rationale for hiring consultants?” asked the department.

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“Consultants provide a flexible and rapid deployment of resources with specialized skills and expertise to support the department’s operational requirements and internal systems, specifically providing guidance for the department’s transformation efforts, and to help ensure programs and services are delivered efficiently, effectively and prudently.”

This same department said in a 2024 memo it had to hire consultants because none of its employees were “available,” while at the time had 34,410 employees.

Consultant spending by the feds costs $25 billion yearly 

According to the Procurement Ombudsman, federal spending on consultants totals $25 billion a year.

“How does the department ensure value for money in professional services contracts?” asked the Employment Department’s Briefing Binder.

“To strengthen oversight and ensure value for money in professional services procurement, new measures have been introduced for contracts based on hourly or daily rates. These include enhanced benchmarking against market standards and clearer expectations for cost effectiveness.”

The Treasury Board estimated costs increased even as cabinet grew the federal payroll to $84.9 billion with 611,874 employees in 2025 including the Canadian Armed Forces, RCMP and Crown corporations like Canada Post and VIA Rail.

The figure included salaries, benefits and pensions.

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