Is it job creation if government is doing most of the hiring?

COVID brought with it huge government expenditures, and the end of the crisis didn’t end the growth of government. Over the four years of 2019-2023, there was a steep increase in new government jobs, contrasted with relatively little growth in the private sector. Data compiled by the Fraser Institute reveals that new jobs created by the country’s federal and provincial governments increased by 13 percent, more than three times greater than the 3.6 percent increase in private sector jobs.

But it is the contrast between the provinces that is the most striking. Alberta and Nova Scotia, run by conservative governments, both had a greater percentage of growth in the private sector. Compare this with BC, where under the NDP, government jobs grew by 22% compared to just 0.5% for the private sector.

In their report “Economic Recovery in Canada before and after COVID,” the Fraser Institute compared the data with five previous recessions and slowdowns and found that “none of those recoveries were nearly as reliant on job creation in the government sector.”

Governments have always been interested in growing – 3,000 years ago the Lord warned Israel that the king they were demanding would want all sorts of servants (1 Sam. 8:11-18) – and times of hardship are often used to justify larger government reach. Checks and balances, including elections, are a crucial part of restraining a government. Unfortunately, in recent elections, the public has been rewarding parties who pledge to increase government debt rather than rein it in.