Without Public Sector Hiring, Canada’s Jobless Rate Would Be Even Higher – May 2025 Unemployment Hits 7%—Highest in Nine Years
Canada’s Economic Outlook: Worsening by Design?
Canada’s economy continues to falter, with the national unemployment rate hitting 7% in May 2025, marking the highest level in nearly a decade. While global headwinds have played a role, domestic policy decisions—particularly those driven by Prime Minister Mark Carney’s administration—appear to be worsening the situation.
Despite the rising jobless rate, public sector hiring has cushioned the blow, raising concerns that the private sector is in deeper trouble than the numbers suggest.
A Government-Heavy Job Market
Much of the employment growth reported in recent months has come from government hiring, not private enterprise. In fact, public sector expansion may be masking a more severe economic problem: a sluggish or even shrinking private sector.
Prime Minister Mark Carney has leaned heavily into a centralized governance model, pledging increased bureaucracy, public spending, and regulatory expansion. Many critics argue that this approach creates barriers for entrepreneurs and private investors, especially when public sector unions gain more control over employment practices.
The Cost of Growing Bureaucracy
Public sector unions, which dominate Canada’s education, health, and civil service sectors, compete directly with the private sector for talent—but without the pressure of generating revenue. This leads to brain drain, as highly skilled professionals seek better opportunities abroad or in more competitive industries.
In one striking example, recent protests by federal employees revealed demands not only for higher wages but also for continued remote work—regardless of productivity or performance concerns. When government jobs become entitlement-driven, productivity suffers, and economic inefficiency becomes systemic.
The Role of Ideology in Economic Decline
Many Canadians are beginning to question whether ideological agendas are driving economic decisions. Mark Carney has been outspoken about his vision for a more controlled, centrally managed Canada—often doubling down on censorship initiatives and expansive government programs.
This mirrors concerns expressed by entrepreneurs who fear the stifling effect of red tape on business formation and job creation. While Carney’s policies appeal to far-left political groups and special interests, critics argue that the broader economy—especially the working-class and entrepreneurial Canadians—is paying the price.
Debt-Fueled Growth Isn’t Real Growth
Carney, a former central banker, appears to be applying a lender’s mindset to government: as long as the country can service its debt, the spending continues. But unlike a private business that must remain solvent, government spending often comes with gridlock and a bloated administrative burden.
Investments in programs like Net Zero and ESG—which may lack immediate economic value—continue to receive funding, while small businesses struggle with high taxes, limited financing, and regulatory bottlenecks.
Private Sector Suffers as U.S. Becomes More Competitive
With Donald Trump ramping up American competitiveness through reduced regulation and improved inter-state trade, Canada is in a precarious position. Shared language and close proximity make the U.S. an attractive alternative for businesses and investors.
If Canada fails to offer similar or better conditions, there is little incentive for industries like manufacturing or logistics to remain north of the border. Canada risks losing not only talent but also capital and innovation.
What Comes Next for Canada?
Unless there is a shift away from the current approach of expanding government at the expense of the private sector, unemployment in Canada may continue to rise—especially among private employers.
Carney’s campaign promises to grow the public workforce, borrow more money, and add layers of bureaucracy could result in short-term political wins, but long-term economic instability. As more Canadians turn away from Judeo-Christian values and embrace the idea that government—not God or family—is the ultimate authority, the nation risks losing its spiritual and economic foundation.
A Final Word: The Bigger Picture
Canada’s current path reflects more than just economic mismanagement—it reveals a cultural shift away from personal responsibility and toward statist dependency. When leaders remove faith and principles from governance, what replaces it is often centralized power, moral confusion, and national decline.
If you’re concerned about where Canada is headed, remember that true leadership starts with serving something greater than ourselves.
Consider making Christ your Lord and Savior—and commit to building a better future through faith, liberty, and sound values.