From the Fraser Institute

By: Ben Eisen and Milagros Palacios

The number of government jobs in British Columbia grew by 22 per cent (the highest percentage in the country) compared to just 0.5 per cent in the private sector. In Ontario, the number of government jobs grew by 14.6 per cent compared to 4.8 per cent in the private sector.

Across Canada, government employment has exploded, dwarfing job-growth numbers in the private sector and raising serious questions about the affordability of this government hiring spree.

Specifically, according to our new study, from 2019 to 2023 employment in the government sector (which includes federal, provincial and local governments nationwide) increased by 13.3 per cent compared to just 3.6 per cent in the private sector (including self-employment).

Among the provinces, during the same four-year period, the number of government jobs in British Columbia grew by 22 per cent (the highest percentage in the country) compared to just 0.5 per cent in the private sector. In Ontario, the number of government jobs grew by 14.6 per cent compared to 4.8 per cent in the private sector. Eight out of the 10 provinces experienced a faster rate of job growth in the government sector than in the private sector over the four-year period. Alberta was the only large province where the private sector had a faster rate of job growth (7.2 per cent) than the government sector (4.4 per cent).

Moreover, during the four-year period, almost half of the total job growth in the Canadian economy took place in the government sector. As a result, the number of government jobs (as a share of total employment) increased by 21.1 per cent. In case you’re wondering, you can reasonably attribute this growth in government to the pandemic as most of the growth occurred post-COVID. As a result, government employment (again, as a share of total employment) in 2022 and 2023 was higher than at any point since the start of the fiscal reforms of the early 1990s.

So, why is this a problem?

Because the private sector pays for the public sector including the wages and salaries of government employees. And when you increase the size of the government-sector workforce, you increase the strain on government finances. If the share of workers employed by government continues to grow, the government must extract more money from the private sector to pay for a growing government wage bill—either in the form of higher taxes today or new debt that must be either repaid or financed indefinitely by future taxpayers. That’s the last thing taxpayers need, considering the state of government finances across the country. The federal government, for example, expects to run budget deficits of at least $20 billion for the next five years.

Taken together, these job growth numbers tell us an important story about the state of Canada’s labour market and economy. While there was substantial variation between provinces, almost all of them experienced a faster rate of job growth in the government sector than in the private sector over four years. This raises serious questions about the health of the private sector in Canada and the effect of an increasingly expensive government wage bill on taxpayers who must ultimately foot the bill. Policymakers should consider these questions before making any future decisions about budgets and government-sector job growth.

Ben Eisen

Senior Fellow, Fraser Institute

Milagros Palacios

Director, Addington Centre for Measurement, Fraser Institute

By Garry Clement

Former Senior Mountie Argues Geopolitics of Ottawa’s Relations with Beijing Loom Behind Trump Threats

The threat of a 25% tariff on goods from Mexico and Canada, announced by President-elect Donald Trump, highlights a harsh reality: Canada’s vulnerability to fentanyl is deeply intertwined with its close ties to China.

Chris George, a government relations advisor and writer, has highlighted the Liberal Party’s connections with Chinese leadership. He notes that the party’s relationship with the Chinese Communist Party is significantly influenced by Power Corporation, the Desmarais clan’s flagship enterprise.

The ties between the Liberal Party and Power Corp have allegedly become so entrenched they are virtually indistinguishable:

• André Desmarais, son-in-law of former Prime Minister Jean Chrétien, serving as President and co-CEO of Power Corp.
• Former Prime Ministers Paul Martin, Jean Chrétien, and Pierre Trudeau holding positions within Power Corp.
• Jean Chrétien acting as a Power Corp. lobbyist in China.
• John Rae, brother of former Liberal leader Bob Rae, being a long-serving senior manager.
• Senator Peter Harder, a key advisor to Prime Minister Justin Trudeau on China, previously serving on the board of Power Financial Corporation, a subsidiary of Power Corp.

Peter Harder also served as President of the Canada-China Business Council, a business advocacy group founded in 1978 with significant support from Paul Desmarais and Power Corporation. He left the council upon his Senate appointment by Prime Minister Trudeau. The Council is now chaired by Olivier Desmarais, grandson of Paul Desmarais and Jean Chrétien. These connections are also explored in my book, Undercover: In the Shady World of Organized Crime and the RCMP.

Recent reports reveal strong ties between Chinese leaders, the People’s Republic of China, and the Premier of British Columbia. Chinese companies have been acquiring Canadian logging operations and vast tracts of farmland. In Prince Edward Island, properties are being purchased under the guise of a monastic group called Bliss and Wisdom.

Evidence suggests that China’s leadership is complicit in producing fentanyl precursors, fully aware of their shipment to Mexico—and now Canada. It is widely suspected that fentanyl money laundering is facilitated through the “black market peso exchange,” a method funneling illicit proceeds into North America. Wealthy Chinese buyers then use fentanyl profits to purchase property, while the manufacturers of precursors are paid in Chinese renminbi.

Traditional media outlets, across the political spectrum, seem to have fallen under the same spell as the Liberal Party, failing to report on these pressing issues with any legitimate objectivity.

The tariffs proposed by President-elect Trump will undoubtedly impact us all. But perhaps, by remaining silent for so long, Canada is now facing the consequences it deserves. It is time for the silent majority to hold this failing government accountable. Canada needs greater transparency, accountability, and a complete re-evaluation of its foreign and domestic policies—especially those concerning China.

Garry Clement consults with corporations on anti-money laundering, contributed to the Canadian academic text Dirty Money, and wrote Undercover, In the Shady World of Organized Crime and the RCMP