Federal Student Job Cuts Canada 2025: Government Slashes Positions by 20%

Olivia Carter
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The corridors of federal offices across Canada have grown noticeably quieter this year as nearly 2,000 student positions disappeared from government payrolls, representing a stark 20% reduction in youth employment opportunities within the public service.

According to documents obtained through access to information requests, federal departments and agencies employed just 7,682 students during the 2024-2025 fiscal year, down dramatically from 9,638 in the previous period. This substantial decline comes amid broader cost-cutting measures implemented by Prime Minister Justin Trudeau’s administration as it grapples with mounting fiscal pressures.

“This represents a significant lost opportunity for both students seeking valuable work experience and government departments that benefit from fresh perspectives,” said Dr. Elaine Thompson, Director of the Canadian Centre for Public Service Innovation. “Student programs have historically served as a crucial pipeline for recruiting the next generation of public servants.”

The Treasury Board Secretariat, which oversees public service employment, attributed the reduction to “budget realignment priorities” across multiple departments. However, critics argue the cuts disproportionately impact young Canadians already facing challenging employment prospects.

The heaviest reductions occurred within Service Canada and Employment and Social Development Canada, which together eliminated over 500 student positions. These departments traditionally offered frontline experience in delivering essential services to Canadians, particularly in rural and remote communities.

Parliamentary Budget Officer Yves Giroux expressed concern about the long-term implications. “Student employment programs represent a relatively small investment that yields significant returns through workforce development and succession planning. These cuts may produce modest short-term savings but could create talent pipeline challenges for years to come.”

The CO24 News analysis of departmental data reveals the cuts were not distributed evenly, with some regions bearing a heavier burden. Atlantic Canada saw student positions reduced by nearly 30%, while Quebec experienced a more modest 15% decrease.

Opposition critics have seized on the issue. “The government speaks constantly about investing in youth and creating opportunities for the next generation, yet their actions tell a completely different story,” said Conservative employment critic Janet Miller during question period last week. “How can the Prime Minister justify eliminating career pathways for thousands of young Canadians?”

The Canada News team spoke with several affected students, including Miguel Santana, a third-year political science major at Carleton University. “I had been counting on returning to my position at Global Affairs this summer,” Santana explained. “Now I’m scrambling to find alternative employment, as are many of my classmates who had similar expectations.”

Labour market experts note that federal student positions are particularly valuable because they typically pay above minimum wage and provide experience directly relevant to future careers in public service, policy development, and administration.

The federal government has defended the reductions as part of necessary fiscal restraint measures aimed at reducing the national deficit, which reached $34.9 billion in the last fiscal year. Finance Minister Chrystia Freeland has emphasized the need for all departments to identify efficiencies.

“Every department has been asked to make difficult decisions,” said Freeland during a CO24 Politics interview last month. “We remain committed to youth employment through other programs, including the Canada Summer Jobs initiative, which operates in the private and non-profit sectors.”

However, data shows the Canada Summer Jobs program has not expanded to absorb students displaced from federal positions, raising questions about the overall reduction in government-supported youth employment.

As campus recruitment season approaches this fall, university career centers report significantly fewer federal government opportunities posted for summer 2026, suggesting the reduced hiring trend may continue. This prospect leaves many wondering: in our efforts to balance today’s budgets, are we mortgaging tomorrow’s public service by cutting off the very pathways that have historically developed our most committed and experienced government professionals?

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