Canada’s federal bureaucracy expanding rapidly at your expense

Why do we need 80 per cent more bureaucrats to regulate and centrally plan employment in Canada when total employment is only up 15 per cent?

The increased bureaucratization and socialization of Canada’s economy since 2015 is well illustrated by the Treasury Board of Canada secretariat’s new statistics on the federal public service. All across the economy there’s massive bureaucratic expansion to fulfill political demands while the private sector, which fulfills consumer demands for goods and services, is crowded out and its relative importance reduced.

There are now 39,089 federal employees at Employment and Social Development Canada, up 80 per cent from 2015. Meanwhile, total employment in Canada across all industries is up only 15 per cent. Why do we need 80 per cent more bureaucrats to regulate and centrally plan employment in Canada when total employment is only up 15 per cent?

Next, consider the agriculture sector. From 2015 to 2024, the headcount at the federal department of Agriculture and Agri-Food increased 11 per cent while total employment in agriculture fell 18 per cent. That’s 11 per cent more agricultural bureaucrats and central planners while the number of people actually producing agricultural goods is down 18 per cent.

Considering dairy in particular, there are now 75 people employed at the Canadian Dairy Commission, up 34 per cent versus 2015. Meanwhile the number of dairy cows in Canada as of 2023 (the latest year of available data) is only up two per cent versus 2015, and the number of farms that ship milk is actually down 20 per cent. So, 34 per cent more dairy bureaucrats versus two per cent more dairy cows and 20 per cent fewer dairy farms.

Similarly, the Canadian Transportation Agency’s headcount rocketed to 377 in 2024, up 20 per cent from the prior year and up 56 per cent since 2015. Yet since 2015, total employment in transportation and warehousing in Canada increased by a much more modest 17 per cent.

In 2024, a year with no federal election scheduled, there are 1,250 employees at Elections Canada, nearly double the headcount of 630 in 2015, which had a federal election. But while the number of Elections Canada employees has nearly doubled, the number of voters in Canada has not. From 2015 to 2024, Canada’s population increase is about 14 per cent.

Another example: Fisheries and Oceans Canada now employs 14,716 people, up 49 per cent since 2015, and Natural Resources Canada now employs 5,751 people, up 39 per cent since 2015. Meanwhile the number of Canadians employed in natural resources (more specifically, forestry, fishing, mining, quarrying, and oil and gas) is actually down one per cent since 2015.

As of 2024, the federal department for Women and Gender Equality employs 443 people, up 382 per cent versus 2015. But if the number of women in Canada has gone up 382 per cent in the same time period, this is nowhere reflected in any of the population statistics published by Statistics Canada—a government agency whose own headcount as of 2024 is up 48 per cent since 2015.

And total employment in our federal public administration (and separate agencies) is up 43 per cent (from 257,000 to 368,000) from 2015 to 2024. So we’re not just cherry-picking.

But perhaps the most depressing statistic from the Treasury Board of Canada secretariat’s report is the headcount growth at the Canada Revenue Agency.

There are now 59,155 people employed at the CRA as of 2024, up 48 per cent since 2015—a stark reminder of this federal government’s enthusiasm for raising taxes and expanding government control.

Author:

Matthew Lau

Adjunct Scholar, Fraser Institute

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Worst kept secret—red tape strangling Canada’s economy

Published on February 22, 2025

Todayville

From the Fraser Institute

By Matthew Lau

In the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S.

According to a new Statistics Canada report, government regulation has grown over the years and it’s hurting Canada’s economy. The report, which uses a regulatory burden measure devised by KPMG and Transport Canada, shows government regulatory requirements increased 2.1 per cent annually from 2006 to 2021, with the effect of reducing the business sector’s GDP, employment, labour productivity and investment.

Specifically, the growth in regulation over these years cut business-sector investment by an estimated nine per cent and “reduced business start-ups and business dynamism,” cut GDP in the business sector by 1.7 percentage points, cut employment growth by 1.3 percentage points, and labour productivity by 0.4 percentage points.

While the report only covered regulatory growth through 2021, in the past four years an avalanche of new regulations has made the already existing problem of overregulation worse.

The Trudeau government in particular has intensified its regulatory assault on the extraction sector with a greenhouse gas emissions cap, new fuel regulations and new methane emissions regulations. In the last few years, federal diktats and expansions of bureaucratic control have swept the auto industry, child care, supermarkets and many other sectors.

Again, the negative results are evident. Over the past nine years, Canada’s cumulative real growth in per-person GDP (an indicator of incomes and living standards) has been a paltry 1.7 per cent and trending downward, compared to 18.6 per cent and trending upward in the United States. Put differently, if the Canadian economy had tracked with the U.S. economy over the past nine years, average incomes in Canada would be much higher today.

Also in the past nine years, business investment in Canada has fallen while increasing more than 30 per cent in the U.S. on a real per-person basis. Workers in Canada now receive barely half as much new capital per worker than in the U.S., and only about two-thirds as much new capital (on average) as workers in other developed countries.

Consequently, Canada is mired in an economic growth crisis—a fact that even the Trudeau government does not deny. “We have more work to do,” said Anita Anand, then-president of the Treasury Board, last August, “to examine the causes of low productivity levels.” The Statistics Canada report, if nothing else, confirms what economists and the business community already knew—the regulatory burden is much of the problem.

Of course, regulation is not the only factor hurting Canada’s economy. Higher federal carbon taxes, higher payroll taxes and higher top marginal income tax rates are also weakening Canada’s productivity, GDP, business investment and entrepreneurship.

Finally, while the Statistics Canada report shows significant economic costs of regulation, the authors note that their estimate of the effect of regulatory accumulation on GDP is “much smaller” than the effect estimated in an American study published several years ago in the Review of Economic Dynamics. In other words, the negative effects of regulation in Canada may be even higher than StatsCan suggests.

Whether Statistics Canada has underestimated the economic costs of regulation or not, one thing is clear: reducing regulation and reversing the policy course of recent years would help get Canada out of its current economic rut. The country is effectively in a recession even if, as a result of rapid population growth fuelled by record levels of immigration, the GDP statistics do not meet the technical definition of a recession.

With dismal GDP and business investment numbers, a turnaround—both in policy and outcomes—can’t come quickly enough for Canadians.

Matthew Lau

Adjunct Scholar, Fraser Institute

Business

‘Out and out fraud’: DOGE questions $2 billion Biden grant to left-wing ‘green energy’ nonprofit`

Published on February 22, 2025

Todayville

From LifeSiteNews

By Calvin Freiburger

The EPA under the Biden administration awarded $2 billion to a ‘green energy’ group that appears to have been little more than a means to enrich left-wing activists.

The U.S. Environmental Protection Agency (EPA) under the Biden administration awarded $2 billion to a “green energy” nonprofit that appears to have been little more than a means to enrich left-wing activists such as former Democratic candidate Stacey Abrams.

Founded in 2023 as a coalition of nonprofits, corporations, unions, municipalities, and other groups, Power Forward Communities (PFC) bills itself as “the first national program to finance home energy efficiency upgrades at scale, saving Americans thousands of dollars on their utility bills every year.” It says it “will help homeowners, developers, and renters swap outdated, inefficient appliances with more efficient and modernized options, saving money for years ahead and ensuring our kids can grow up with cleaner, pollutant-free air.”

The organization’s website boasts more than 300 member organizations across 46 states but does not detail actual activities. It does have job postings for three open positions and a form for people to sign up for more information.

The Washington Free Beacon reported that the Trump administration’s Department of Government Efficiency (DOGE) project, along with new EPA administrator Lee Zeldin, are raising questions about the $2 billion grant PFC received from the Biden EPA’s National Clean Investment Fund (NCIF), ostensibly for the “affordable decarbonization of homes and apartments throughout the country, with a particular focus on low-income and disadvantaged communities.”

PFC’s announcement of the grant is the organization’s only press release to date and is alarming given that the organization had somehow reported only $100 in revenue at the end of 2023.

“I made a commitment to members of Congress and to the American people to be a good steward of tax dollars and I’ve wasted no time in keeping my word,” Zeldin said. “When we learned about the Biden administration’s scheme to quickly park $20 billion outside the agency, we suspected that some organizations were created out of thin air just to take advantage of this.” Zeldin previously announced the Biden EPA had deposited the $20 billion in a Citibank account, apparently to make it harder for the next administration to retrieve and review it.

“As we continue to learn more about where some of this money went, it is even more apparent how far-reaching and widely accepted this waste and abuse has been,” he added. “It’s extremely concerning that an organization that reported just $100 in revenue in 2023 was chosen to receive $2 billion. That’s 20 million times the organization’s reported revenue.”

Daniel Turner, executive director of energy advocacy group Power the Future, told the Beacon that in his opinion “for an organization that has no experience in this, that was literally just established, and had $100 in the bank to receive a $2 billion grant — it doesn’t just fly in the face of common sense, it’s out and out fraud.”

Prominent among PFC’s insiders is Abrams, the former Georgia House minority leader best known for persistent false claims about having the state’s gubernatorial election stolen from her in 2018. Abrams founded two of PFC’s partner organizations (Southern Economic Advancement Project and Fair Count) and serves as lead counsel for a third group (Rewiring America) in the coalition. A longtime advocate of left-wing environmental policies, Abrams is also a member of the national advisory board for advocacy group Climate Power.