PEI Projected to Lose 10 to 12 per cent of its Federal Jobs

A working group made up of the City of Charlottetown, the Public Service Alliance of Canada, the Professional Institute of the Public Service of Canada and the Government of Prince Edward Island has released a report it commissioned into the scope and impact of potential federal job cuts on Prince Edward Island.

The study, completed by McInnes Cooper, was launched in February 2012, at a time of widespread speculation about the volume of federal cuts. The key findings of the report are as follows:

• There are 35 federal government units (departments, agencies, crown corporations, etc.) in Prince Edward Island which amount to 3,827 permanent federal positions.

• It is estimated that, over the next 3 years, 379 to 458 positions (between 10-12% of the federal workforce in P.E.I.) will be eliminated.

• This will generate additional non-government job losses of between 247 and 298 for a total job loss projection ranging from 626 to756 positions.

• This represents a PEI GDP decline of between $50.46 and $61.02 million or about 1.01 to 1.22% of provincial GDP.

“From the perspective of the City of Charlottetown, these study findings are a cause of significant concern. Charlottetown is home to Veterans Affairs and many federal offices, and an economic hit like this is worrisome,” said Mayor Clifford Lee.

“As a union representing these workers, we know first hand what these cuts mean. But I think Islanders will be surprised to learn just how much the services they come to rely on from the federal government will be impacted,” said Gary Corbett of the Professional Institute of the Public Service of Canada.

“Through these cuts, the federal government is putting our economic recovery and the viability of small communities at risk, said Chris Aylward, National Executive Vice-President, of the Public Service Alliance of Canada.

“This study shows that the large number of federal job cuts in Prince Edward Island is out of proportion with cuts in other areas. We want the Federal Government to re-think its approach,” said Innovation and Advanced Learning Minister Allen Roach.

The report was released at a press conference held at the Legion in Charlottetown. In attendance were a number of stakeholder groups concerned about the loss of jobs and the service reductions that islanders will experience as a result.

The working group will be sitting down with stakeholders to develop a plan for further activities aimed protecting federal jobs on the Island.

To view the report, Economic Impact of Federal Workforce Reductions in Prince Edward Island.