Size of gov’t at every level continues to outpace Canada’s economy: study

The study measured the size of provincial governments based on total spending as a share of the economy and public sector employment as a share of total employment.

The size of Canada’s government at every level has increased in relation to its economy in recent years, preventing optimal economic growth, according to a new study from the Fraser Institute.

“The size of government relative to the size of the economy has been increasing across the country in recent years, with all 10 provinces seeing increases since 2019,” said Jake Fuss, director of fiscal policy at the Fraser Institute and co-author of The Size of Government in Canada in 2024.