Canada's Government Sector Reaches Record Size Amid Concerns Over Economic Growth

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 growth is not solely due to the pandemic, as total government spending as a share of GDP increased from 40.3% in 2019 to 43.6% in 2024.

The Fraser Institute's recent study suggests that large governments come with significant costs, including reduced economic growth and higher taxes for private sector workers.

Economists generally agree that the ideal size of government is between 24 and 32% of a jurisdiction's economy, but Canada's current size of government far exceeds this range.