Updated
Updated · Toronto Sun · Aug 24
Canada Employment Department Spends $998.5 Million on Consultants, 10% Above Average Despite 20% Cut Vow
Updated
Updated · Toronto Sun · Aug 24

Canada Employment Department Spends $998.5 Million on Consultants, 10% Above Average Despite 20% Cut Vow

1 articles · Updated · Toronto Sun · Aug 24

Summary

  • $998.5 million in 2025 consultant spending put Canada’s Department of Employment about 10% above its six-year average of $910 million, despite Prime Minister Mark Carney’s pledge to cut such spending by 20%.
  • An April 21 briefing binder defended the hiring, saying consultants offer rapid, flexible access to specialized skills needed for operations, internal systems and departmental transformation efforts.
  • The department had already argued in a 2024 memo that no employees were available for some work, even though it then employed 34,410 staff.
  • The spending sits within a broader federal pattern: Ottawa spends about $25 billion a year on consultants, while the 2025 public-sector payroll reached $84.9 billion for 611,874 employees.

Insights

Why did Canada spend nearly a billion dollars on external consultants while already employing over 34,000 internal staff?
Can new AI tools and automation truly replace the government's heavy reliance on a booming consulting industry?