Federal department spent nearly $1 billion on consultants despite Carney’s promised cuts

The Department of Employment spent $998.5 million on consultants last year, about 10 percent above its six-year average of $910 million, according to records obtained by Blacklock’s Reporter.

The spending came as the Carney government publicly promised to rein in both the federal bureaucracy and its reliance on consultants.

“We are reducing the size of the public service by 10 percent and cutting management consultants by 20 percent,” Carney said last November, claiming the measures would contribute to $60 billion in taxpayer savings.

Department officials defended the spending in an April briefing binder, saying consultants allow for the “flexible and rapid deployment of resources with specialized skills and expertise” and help with internal systems and departmental transformation.

The department has previously acknowledged hiring consultants when its own employees were unavailable or lacked particular expertise.

A December 2024 memo said consultants were retained when “no employee was available or that specified skill sets or specialized knowledge were lacking.”

At the time, the department employed 34,410 people.

The spending is part of a much larger reliance on outside contractors across Ottawa. According to figures cited by Blacklock’s, the Procurement Ombudsman has estimated federal consulting expenditures at roughly $25 billion annually.

Consulting costs have grown alongside the federal payroll. Treasury Board estimated total government payroll costs at $84.9 billion, covering salaries, benefits and pensions.

The government counted 611,874 employees across federal departments, the Canadian Armed Forces, RCMP and Crown corporations including Canada Post and VIA Rail.

Carney previously pledged a different approach to federal finances, declaring in 2024: “I have a simple rule: spend less, invest more.”

He also promised to balance Ottawa’s operational budget within three years.

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