OTTAWA, ON: Taxpayers would save about $7 billion had the federal bureaucracy grown in line with population over the last decade, according to analysis from the Canadian Taxpayers Federation based on recently published government data.

“Taxpayers are still paying too much for too many paper pushers in Ottawa,” said Franco Terrazzano, CTF Federal Director. “Prime Minister Mark Carney needs to make the bureaucracy more affordable to provide meaningful tax relief and stop borrowing money.”

The federal government reduced its payroll by 12,683 employees, or 3.5 per cent, between March 2025 and March 2026, according to government data.

However, the federal government still has 86,303 more employees than it did in 2016 – a 33 per cent increase. For comparison, Canada’s population grew by 15 per cent over the same time.

The average compensation for a full-time federal bureaucrat is $161,900, according to the Parliamentary Budget Officer. Taxpayers would save about $7 billion in 2026 had the federal bureaucracy grown in line with population over the last decade.

Seven federal departments and agencies have more than doubled their number of employees since 2016, including:

• Infrastructure Canada (376 per cent)
• Women and Gender Equality Canada (301 per cent)
• RCMP External Review Committee (214 per cent)
• Financial Consumer Agency of Canada (174 per cent)
• Elections Canada (154 per cent)
• Immigration and Refugee Board of Canada (150 per cent)
• Impact Assessment Agency of Canada (116 per cent)

Employment and Social Development Canada added the greatest number of employees since 2016. The department added 13,228 employees since 2016 – a 59 per cent increase.

The Canada Revenue Agency added the second greatest number of employees over the decade. The CRA added 9,290 employees since 2016 – a 24 per cent increase.

The federal government will spend $79.4 billion on the bureaucracy this year, up from $69.2 billion last year, according to PBO projections. The cost of the federal bureaucracy increased 80 per cent between 2015 and 2024, according to the Public Accounts.

“The number of federal employees is shrinking a little bit, but Carney still has lots of work to do to shrink Ottawa’s bloated bureaucracy,” Terrazzano said.

Half of Canadians say federal services have gotten worse since 2016, despite the massive increase in the bureaucracy, according to a Leger poll. Most Canadians support cutting the size and cost of the bureaucracy, according to the poll.