Size of government on the rise across Canada

The Size of Government in Canada in 2022

• This bulletin measures the size of government in Canada, by province, based on total government spending as a share of the economy, as well as public sector employment as a share of total employment, between 2007 and 2022.
• Research shows that the size of government (relative to the economy) has an effect on economic growth and social progress. This makes it important to measure and track—especially given the scope of government spending and intervention during the COVID-19 pandemic.
• In 2022, the size of government relative to the economy among the provinces ranged from a high of 63.0 percent in Nova Scotia to a low of 26.8 percent in Alberta. For Canada as a whole, the size of government represented 40.5 percent of the economy.
• From 2007 to 2022, government spending as a share of the economy increased in eight out of ten provinces. Furthermore, seven provinces experienced an increase in the size of government since the beginning of the COVID-19 pandemic.
• For Canada as a whole, public-sector employment represented 21.2 percent of total employment. From 2007 to 2022, public-sector employment as a share of total employment increased in every province.
• Provinces in the Maritimes tended to have larger governments relative to the economy, which employed a higher share of total workers, than provinces in western Canada. However, the size of government in general has been increasing across the country.