Public-sector scale
Public administration employment has grown 11.2 % since 2020, double private-sector job growth. Yet service delivery outcomes — from infrastructure approvals to digital permits — have stagnated.
| Metric | 2019 | 2024 | 2025 | Source |
|---|---|---|---|---|
| Public-sector employment (mn) | 3.6 | 4.0 | 4.1 | Statistics Canada Table 14-10-0202 |
| Avg. program spending growth (y/y) | +4.8 % | +6.5 % | +5.9 % | PBO |
| Citizen satisfaction (Gov’t digital services) | 74 % | 68 % | 66 % | IPSOS 2025 |
Structural issues
Duplicated functions, outdated technology, and minimal productivity metrics. Public digital transformation lags peers like the U.K. and Denmark by 3–5 years.
What leaders can do
- Implement outcome budgeting. Measure outputs per tax dollar, not departmental headcount.
- Invest in workflow automation. 30 % of administrative tasks are automatable.
- Benchmark with private-sector service levels. Use SLAs and customer KPIs internally.
- Reform procurement. Fast-track pilot programs with innovative SMEs.
Arcus Insight: Efficiency isn’t about cutting staff — it’s about managing throughput. The public sector must shift from compliance to performance management.