Question Period Note: Comprehensive Expenditure Review

Budget 2025 set out direction for the public service flowing from the Comprehensive Expenditure Review – reducing inefficiency, focusing on core priorities, and adjusting its size.Through Budget 2025, ESDC funding is being reduced by $780.5 million by 2028-2029 and ongoing. Funds for the Canadian Centre for Occupational Health and Safety (CCOHS) are being reduced by $0.9 million by 2028-29 and ongoing.

ESDC savings targets were assigned based on 2025-26 Main Estimates levels. As part of the Department’s commitment to fiscal sustainability, ESDC is planning the following reductions:

$156.8 million in 2026-27

$519.8 million in 2027-28

$780.5 million in 2028-29

In total, 5,313 positions are being eliminated at ESDC, plus 98 executive positions.

More specifically, as it relates to workforce adjustment, 3,028 indeterminate employees have received affected letters, which will result in a reduction of 931 positions, plus 39 executive positions that will be reduced through career transition. The remaining positions will be eliminated through a combination of attrition and by ending term contracts. All affected employees have been informed.

ESDC is unable to provide details for some programming elements at this time as reduction plans remain under discussion and have yet to be confirmed.

ESDC’s central role and mandate is to support workers and families through the disruptions we are seeing in the economy and meet ongoing affordability challenges. This will help to position Canadians for significant new opportunities ahead. 

Reductions in spending will focus on delivering better results for Canadians by:

Increasing the uptake of new technologies, such as using artificial intelligence to automate internal processes and streamline operations.

Integrating the services delivered by Service Canada to enhance efficiencies and drive improvements to ensure seamless client experiences.

Streamlining program delivery, such as by merging the Canada Service Corps and Supports for Student Learning Program, to lower administrative costs.

Streamlining administrative functions and processes.

Enhancing controls on discretionary spending in areas such as travel, conferences, and professional services.

IF PRESSED (Workforce Adjustment)

Achieving these savings require a reduction in staffing levels. This includes indeterminate positions and the executive complement.  

ESDC is committed to completing the workforce reduction process in a timely way to provide certainty for everyone involved.

Wherever possible, the goal throughout this process will be to maintain indeterminate employment for employees who wish to remain in the public service.

The Department is taking great care to ensure that the workforce continues to be inclusive and representative of the diverse population of Canada.

ESDC will continue to uphold its obligations under the Official Languages Act, ensuring that services will operate in both official languages.

The government is committed to restraining the growth of day-to-day operational spending to make investments that will grow the economy and benefit Canadians. Employment and Social Development Canada will achieve these reductions by doing the following:

Implementing a new Digital Roadmap for ESDC to better harness technology, such as leveraging artificial intelligence to automate internal processes and streamline operations.

Modernizing Service Canada by fully integrating our service channels, enhancing efficiencies and driving service improvements to ensure seamless client experiences.

Streamlining program delivery through changes to departmental grants and contributions programs, such as by merging Canada Service Corps and Supports for Student Learning, to lower administrative costs.

Streamlining administrative functions and processes.

Enhancing controls on discretionary spending in areas such as travel, conferences and professional services.

None