Quotulatiousness

November 30, 2024

It’s not just your imagination, the Canadian government is much bigger and much less efficient now

Filed under: Bureaucracy, Cancon, Government — Tags: , , — Nicholas @ 05:00

At The Audit, David Clinton shows that the Canadian federal government has gone through significant growth in staff at the same time as just about everything it does is now being done slower and less effectively1 than it was ten or twenty years ago:

Change is normal. The world around us isn’t sitting still and that’s got to have an impact on what’s needed by Canada and Canadians. So we can expect a government’s size and shape to evolve over time, but we’d certainly prefer that the changes were rational.

So let’s take a few minutes to understand how the size, cost, shape, and mandates of our government have been changing over the past few years.

Public service employment

Governments provide a set of services that don’t change dramatically from year to year. Sure, as the population grows they’ll need to process more passport applications and oversee the movement of greater numbers of international travellers across our borders. But task complexity shouldn’t increase faster than the population itself.

Therefore you would expect that the public service should grow in proportion to the overall population. Well, that’s not really true. Due mostly to digital automation, Canada’s private sector labour productivity rose steadily between around 1990 and 2014 and has maintained its peak level ever since. So in fact, since we can now do more with fewer people, you’d really expect public sector employment not to keep pace with rising population levels.

However, the actual proportion of federal employees to Canada’s total population has been growing noticeably over the past six years. Because of the scale I chose for its y-axis, the graph below does exaggerate the changes a bit, but you can see how the federal workforce grew from around 0.72% of the total population in 2017 to 0.9% in 2023. That means about one out of every 59 employed Canadians now works for the federal government.

Which means that – worker-for-worker – Canada’s public service is significantly less productive than it was ten years ago. And the growth in absolute numbers from 257,034 workers in 2015 to 357,247 in 2023 can be accurately characterized as bloat. Unforgivable bloat.

Departmental employment

Since 2011, by my count (and based on Treasury Board data), 11 new federal departments or agencies have come into existence and 18 have been shuffled off to wherever it is old bureaucracies go when they die. In some cases, the change represents nothing more than a technical realignment. The move from the Canadian Polar Commission to Polar Knowledge Canada is probably one such example.

I’m mildly curious to know how much such changes cost, even in terms of simple details like outsourcing designs for a new letterhead and getting IT to set up (and secure) a new website and email domain. I’m sure those don’t come for free.

It’s noteworthy that 11 of those 18 shutdowns took place in 2015 and 2016. That suggests they were the result of the incoming Liberal government’s policy implementations. Nevertheless, those changes don’t explain the scope of civil service employment growth since 2015.


    1. I’m sure you’re all completely sick of me saying it, so I’ve relegated it to a footnote: the more the government tries to do, the less well it does everything.

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