Commentary
By Tegan Hill and Taylor Oliver

The British Columbia election is approaching the home stretch.

And according to new Statistics Canada data, from September 2025 to September 2026, B.C. lost 61,700 private-sector jobs (on net). For one of Canada’s largest provinces, endowed with abundant natural resources and supposedly dynamic hubs of economic activity, losing private-sector jobs (while the government sector continues to grow) should be frontpage news and a key concern on the campaign trail for all parties.

Specifically, in B.C. government-sector employment (including federal, provincial and local governments) increased by 25,600 jobs (4.2 per cent), self-employment increased by 21,500 jobs (5.0 per cent) while private-sector employment decreased by 61,700 jobs (-3.2 per cent). In other words, despite growth in self-employment, it was not nearly enough to offset massive losses in the private sector.

 The national contrast is stark. Across Canada (excluding B.C.), private-sector jobs (including self-employment) grew by 1.8 per cent over the same period while the government sector declined by -3.6 per cent.

Moreover, in 2025 government-sector employment (again, federal, provincial and local) in B.C. accounted for more than 20 per cent of total employment in the province. That means more than one in five jobs is in the government sector. This reflects rapid growth in government jobs over roughly the last decade, outpacing private-sector job growth. At the same time, compensation for government workers in B.C. grew by $22.2 billion or 32.5 per cent.

Even when you look at only one type of government-sector job growth, the trends are troubling. For example, from 2015 to 2024, the number of “public administration” jobs—which include workers that administer government programs and regulations—across all levels of government in B.C. grew by 4.2 per cent each year (on average) while private-sector employment grew by just 2.2 per cent (on average).

Put differently, bureaucratic bloat—not simply more nurses and teachers—is driving growth of the government sector in B.C.

Not surprisingly, the provincial government is responsible for a substantial portion of government job growth in B.C. From fiscal years 2015/16 to 2025/26, the government added 153,604 fulltime equivalents or FTEs (a measure of staff employment—two half-time employees equal one FTE).

Again, this growth far outpaced growth in the private sector.

And of course, the private sector must pay for government jobs. As the government sector grows relative to the private sector, taxpayers face a larger burden to support it, leaving less money for saving, investment and business expansion—and a less dynamic economy with fewer opportunities and private-sector jobs.

With the B.C. government already facing a projected $13.8 billion budget deficit in 2026/27, growth of the government will only increase the burden on taxpayers, particularly when private-sector job-creation just isn’t keeping up.

In B.C., while the private-sector bleeds jobs, government-sector employment continues to grow. This is bad news for British Columbians. The province needs a stronger private sector that can create jobs, attract investment and generate the economic growth needed to support government services.

The next B.C. government, regardless of political stripe, must help create an economic environment that prioritizes private-sector growth, the key to widespread prosperity.

Tegan Hill is Director, Alberta Policy at the Fraser Institute. Taylor Oliver is an intern at the Fraser Institute.