Public services slashed by federal budget

The Public Service Alliance of Canada, Quebec Region takes a dim view of Carney’s first budget, tabled yesterday. The budget will eliminate 40,000 public service jobs over the next three years and encourage the use of artificial intelligence—and in turn outsourcing—to offset job losses.

“It’s not as though 40,000 public service workers are sitting around twiddling their thumbs,” said Sébastien Paquette, Executive Vice-President for PSAC-Quebec. “The public sector was already struggling to meet demand. These cuts will slow federal processing and response times for things like passports, tax questions, and employment insurance. This gap cannot be filled by AI.

“AI has yet to prove its worth, especially with complex analysis,” noted Paquette. “It also requires government funding, and will provide no economic benefit to Quebec’s regions. AI will replace public service workers, but it won’t be eating out in Quebec City, shopping in Saguenay, or camping in Gaspésie. These cuts will weaken both our services and the economy province-wide.”

Highest impact in the regions

At the moment, it’s impossible to tell which positions will be cut and where. But with 40,000 jobs on the chopping block, every department and agency in Quebec is likely to be affected.

“If 100 or 200 jobs are eliminated in Saguenay or Mauricie, that’s significant,” said Paquette. “The private sector won’t be able to offer positions of equivalent quality for all of these workers.”

The only upside to the 2025 federal budget is that it promises a series of new investments outside the operating budget—a Canadian first that makes sense given the ongoing trade war with the United States. These investments will be made in infrastructure, including housing. 

PSAC has over 43,000 members in Quebec, including 25,000 in the federal public service.

Survey on massive cuts in the public service

PSAC budget reaction

FTQ’s budget reaction (in French only)