Canada's Government Sector Grows to Record Size

Canada's government sector has grown significantly in recent years, with 21.5% of employed Canadians working for government in 2024, up from 19.6% in 2019.

This increase is due to the expansion of government spending as a share of GDP, which rose from 40.3% in 2019 to 43.6% in 2024.

Economists measure total government spending as a share of the economy, and Canada's recent growth in government size has occurred because of choices governments made after the pandemic.

The Fraser Institute study found that large governments come with large costs, including the burden on taxpayers to fund government salaries and debt interest payments.

Research suggests that the ideal size of government for maximizing economic growth is between 24 and 32% of a jurisdiction's economy, but Canada's current size of government (43.6%) is well above this range.