An Elon Musk that pushes chainsaw caused a stir in Washington earlier this year, when Donald Trump established the government’s efficiency department to reduce government spending and reduce jobs.
According to some estimates, hundreds of thousands were fired or attacked for layoffs, although Musk has left Doge and has asked some employees to return to work.
But here there is a “funny fact” that Taylor Schleich, an economist from the National Bank of Canada, has unearthed of recent data that go against popular beliefs.
Canada has reduced a greater proportion of federal jobs than the United States this year.
According to the latest employment survey, payrolls and hours of Statistics Canada, employment in the Federal Government of Canada fell 3.8 percent to July, while the Federal Work Force of the United States fell only 3.1 percent to August, he said.
The decrease in the Federal Labor Force of Canada began before 2025 and the choice of Prime Minister Mark Carney, says Schleich.
The 2024 budget under former Prime Minister Justin Trudeau was aimed at saving money through wear, and since the beginning of that year, the Federal Work Force has been reduced by approximately 5 percent.
Of course, some would argue that there was a greater range for employment cuts in Ottawa. Thanks to the increase in hiring through most of Trudeau’s mandate, Canada still uses a most federal workers, he said. This was not always the case. Before 2020, Canada had a smaller government footprint than the United States.
There is also the possibility that the public service of the United States is about to become even smaller if Trump carries out its threat of reducing more agencies and jobs in the United States during government closure now.
Schleich said if the work cutting trend continues in Ottawa is difficult to say, since we will not see federal expenses until November 4.
But returning to the size of the Federal Work Force in 2015 before Trudeau took power would require reducing 14 percent of employees or around 50,000 jobs, he said.
“It is difficult to imagine that this develops since the Government plans to expand its reach big (for example, through the new homes of Build Canada or the Office of Main Projects),” he said.
“What is clear is that fewer federal workers will not be enough to compensate for the cost of a growing list of expense commitments and losing income through tax cuts.”
The parliamentary budget officer last week predicted that the Federal Government will publish an annual deficit of $ 68.5 billion this year, compared to $ 51.7 billion last year.
Which leads us to another of the revelations of national economists “believes or not.”
Canadian, provincial and federal governments are currently taking advantage of debt markets as aggressively as the United States, whose growing obligations have alarmed investors worldwide.
Five months after the fiscal year, the Government of Canada has auctioned $ 138 billion of new bonds, 44 percent more than the previous year, National said. Add the $ 81.5 billion of the provinces, and the large total reaches $ 220 billion in bond supply, a monthly rate equal to 1.4 percent of the gross domestic product.
The $ 2 billion in the supply of the Gross Treasury of the USA. In the same period, on the other hand, they amount to 1.3 percent of GDP.
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Another change that the age of AI has that electricity is becoming a greater impulse of inflation.
“The voracious appetite for the energy of the data centers has sent a demand for electricity that once sleeps is demanded towards the sky,” said Douglas Porter, chief economist of BMO Capital Markets, in a recent note.
This really appears in the United States, where electricity prices have risen an average of 6.5 percent per year in the last five years. The weight of electricity in the consumer price index is approximately 2.5 percent, so the increase has added 0.15 percentage points to inflation, he said.
Canada has not seen the same increase mainly because the prices here are more regulated and demand less “sparkling,” Porter said. Canadian costs increase only 1.4 percent in the last year, and the average annual increase in the last five years is approximately half of the United States.
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If you have “specific foreign property”, where the total cost at any time of the year is more than $ 100,000, the form T1135, the state of verification of foreign income with its declaration of personal taxes.
Although most of us would agree that a Swiss bank account must be informed with a value of more than $ 100,000 in you, it is possible that it does not realize that the actions of foreign corporations such as Apple Inc. or NVIDIA Corp. must also be revealed, even if they remain in an unregistered Canadian brokerage account.
Tax expert Jamie Golombek fills us in a case in which a taxpayer was beaten with $ 5,000 in CRA penalties for making a mistake when informing the US holdings. Continue reading
Mclister in mortgages
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Today’s position was written by Pamela Heaven with additional reports of Financial Post, Canadian Press and Bloomberg.
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