Liberal democracies are cutting public-service jobs. How does Canada stack up?

4 days ago 17

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During the pandemic, Lofgren said New Zealand’s public service swelled to support a bureaucracy to administer vaccines.

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According to the current government, the commitment to cutting jobs is part of an effort to bring the size of the public service back down to one per cent of the country’s population, which was roughly where it sat pre-pandemic.

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Rather than framing the cuts around what the government should do, the choice to attach a specific number to the job losses is interesting, Lofgren said.

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Ahead of a November election, and with cracks forming in the governing coalition, he said highlighting the number was an act of political signaling.

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“It’s about showing to the core electorate of the three coalition parties that we want to cut back on the state,” he said. “That’s what it’s all about.”

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An embattled Starmer and the rise of Reform

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In the U.K., promises to drastically reform Whitehall, London’s central government district, are longstanding.

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“There’s been a sense in the U.K. for a long time that the state isn’t working,” said Hannah Keenan, associate director at the Institute for Government, a think tank that studies the British civil service.

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Once in power, administrations of all political stripes are known to vent their frustrations over dysfunction in Whitehall.

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Prime Minister Keir Starmer has described his relationship with the civil service as one where he pulls a lever and nothing happens.

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In December 2024, Starmer tasked new cabinet secretary Chris Wormald with “nothing less than the complete rewiring of the British state.”

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That rewiring, Keenan said, hasn’t yet come to pass.

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“Lots of different administrations have said that they are going to change the way that Whitehall and the civil service works,” she said. “Few have turned around the kind of long-term workforce trends — and Labour hasn’t.”

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The current Labour government has brought in some “sensible” and “positive” changes, Keenan said, such as a shift in how funding is allocated and a rollout of useful pilot projects on artificial intelligence.

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But none of those changes have scaled.

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Keir Starmer British Prime Minister Keir Starmer leaves Downing Street on June 03. Photo by Dan Kitwood /GETTY IMAGES

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Unlike in Canada, Starmer’s government hasn’t put a hard number on how many jobs it plans to cut amid efforts to transform government.

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Keenan praised that approach.

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“We think numbers are really crude and tend not to work really well,” she said, explaining that a headcount target may force out talented, cheap, young and mobile staff.

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Instead, the government is squeezing departmental administration budgets, which primarily go toward paying staff. Its current commitment is to trim those budgets by 16 per cent over a decade.

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The result, according to an analysis by the institute, could be a reduction of between 29,000 and 40,000 jobs over that time, a range that would top out at about 7.5 per cent of the workforce.

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“It’s a reasonably big reduction,” Keenan said. “It’s not the biggest reduction we’ve had historically.”

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Even in recent memory, British politicians have called for deeper cuts.

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In 2022, former prime minister Boris Johnson set a target of 91,000 job cuts, a goal Rishi Sunak dropped later that year when he took over the job.

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Currently, both major right-wing opposition parties, Reform UK and the Conservative Party, have set targets for how many civil servants they would cut if they were voted into power.

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The populist Reform, which is leading in the polls, has pledged to chop 13 per cent of full-time civil service jobs for projected annual savings of around £5 billion ($9.3 billion Cdn).

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