Governments throughout Atlantic Canada spend more on public sector employment

Public Sector / Economic Analysis

Atlantic Canadian provincial and municipal government sectors were larger than the national average in 2024, which resulted in $2.7 billion in extra costs for taxpayers, according to a new report published by the Fraser Institute.

“Larger government workforces mean a larger public sector wage bill for taxpayers,” said Ben Eisen, Fraser Institute senior fellow and co-author of 'Measuring the Size and Cost of Atlantic Canada’s Government Workforce'. 

The study finds that across Canada, sub-national (provincial and municipal) government sector employees accounted for 18.4 per cent of all jobs in Canada in 2024. All four Atlantic provinces exceeded that percentage, with Newfoundland and Labrador at 26.5 per cent, followed by Prince Edward Island (22.5), Nova Scotia (22.3), and New Brunswick (20.4). Measured on a per-capita basis, the four Atlantic provinces also exceeded the national average. Whereas the national average was 94 provincial and municipal employees per 1,000 residents, PEI and NL had 117, NS had 110 and NB had 97.

It should be noted that while the Atlantic provinces may have more employees per capita, with a smaller overall population, this is necessary to be able to provide all of the services and supports required of a provincial government.

The following is a breakdown of insights from this report:

• Past analyses have shown that Atlantic Canada’s public-sector workforce is unusually large compared with the national average and that high levels of government employment impose significant costs on taxpayers. This bulletin uses Statistics Canada data to quantify the size of Atlantic Canada’s public sector and estimate the fiscal implications of elevated public-sector employment in the region.
• In 2024, public-sector employment accounted for 20.1% of all jobs nationally. In Atlantic Canada, the average was substantially higher at 25.4%. All four Atlantic provinces recorded public-sector employment shares above the national average.
• Elevated public-sector employment, combined with higher-than-average compensation premiums, means that government workers receive a disproportionately large share of total labour income in Atlantic Canada compared with the rest of the country.
• If subnational public-sector employment rates in Atlantic Canada had matched the national average in 2024, the four Atlantic provinces would have employed approximately 35,000 fewer government workers, reducing their combined public-sector wage bills by an estimated $2.7 billion. For context, the combined operating deficits projected for these provinces in 2025/26 total $2.9 billion.

Click here to download: Measuring the Size and Cost of Atlantic Canada’s Government Workforce

New Brunswick Truck Driver PNP: The Easiest Path to Canada PR for Truck Drivers 

Transportation / Immigration

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There is an acute shortage of competent truck drivers in Canada, which has improved immigration chances significantly. Out of all the Canadian provinces, New Brunswick Truck Driver PNP immigration program has become one of the most lucrative ways of becoming a PR candidate.

The best provinces for truck drivers include: New Brunswick, Saskatchewan, Alberta, Ontario and Nova Scotia. Out of these provinces, New Brunswick is unique since it offers a dedicated truck driver route and an employer-focused system. This province has a constant requirement for truck drivers because of logistics and business operations.

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Legislative Sitting Concludes with Budget, Powering the Economy Act Passed  

Government / Funding

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Budget 2026–27 key investments include $47.5 million to hire more paramedics and emergency medical responders across the province, $47.1 million to pay more to family doctors – including those covering shifts in long-term care facilities, hospitals and rural emergency departments – and $1.2 billion for the Halifax Infirmary Expansion Project and the Cape Breton Regional Municipality Health Care redevelopment project.

The government is investing $873.8 million toward its plan to build 5,700 new and replacement long-term care spaces by 2032. Seven new facilities are expected to open this year in communities from Bridgetown to Arichat. Operating funding of $20.8 million will support those new facilities, and an additional $26.5 million will go to the Home Support Direct Funding Program to help more seniors stay in their homes. The Seniors Care Grant program continues with $26.5 million in funding.

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P.E.I. tourism operators mull how to keep workers as Holland College programs end 

Tourism / Education

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P.E.I.'s tourism and hospitality industries will no longer be able to rely on hiring graduates from a number of Holland College programs, which were suspended in 2025. They include hotel and restaurant operations management, marketing and advertising management, and tourism, travel and event management. The final class of students in those programs is set to graduate this spring. 

"It will be a big hit to our industry," said Corryn Clemence, the CEO of the Tourism Industry Association of P.E.I., noting that the hiring rate out of those programs is very high. "If you look at those three programs specifically, we're looking at about 90 to 100 students per year that would be educated and trained and ready to enter the workforce."

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Newfoundland and Labrador named Provincial‑Territorial Co‑Chair of the Forum of Ministers Responsible for Immigration

Government / Immigration Policy

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Newfoundland and Labrador has begun its three-year term as the provincial-territorial co-chair of the Forum of Ministers Responsible for Immigration, joining the permanent federal co-chair, Immigration, Refugees and Citizenship Canada. The forum brings together federal, provincial and territorial ministers responsible for immigration to advance shared priorities that support a flexible, timely and effective immigration system and strengthen the economic and social benefits of immigration across Canada.

The federal and provincial-territorial co-chairs work alongside provincial and territorial partners to advance multilateral discussions related to immigration priorities, including but not limited to immigration levels planning, economic immigration and settlement and integration, consistent with the shared jurisdiction of immigration in Canada.

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Canadian Job Development Network

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Government pushes employers to hire youth

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This week for

#MotivatingMondays, we talked about steps Employment and Social Development Canada is taking to make it more challenging for employers to hire temporary foreign workers. As of April 1, 2026, employers applying for a Labour Market Impact Assessment (LMIA) under the low-wage stream of the Temporary Foreign Worker Program must advertise positions for a minimum of eight consecutive weeks — double the previous four-week requirement. Forcing employers to look closer at domestic candidates, specifically youth, will create opportunities for job developers.

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IN CASE YOU

MISSED IT

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Read the Apr. 13th Job Development Pulse

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Watch it on Youtube

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We make these sessions available EVERY WEEK on YouTube and most podcast platforms for people who can't attend in person. This is a sequel every week and just as enjoyable as the Super Mario Galaxy Movie. 

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Email:

csaintcyr

@labourmarketsolutions.ca

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Website: 

www.JobDevelopment.org

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Atlantic Labour Market Report

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