PBO Reports on Public-Sector Employee Compensation

A recently published report of Ottawa’s notorious budget watchdog, Parliamentary Budget Officer (PBO), disclosed on Tuesday that Canadians have paid almost $114,100 in compensation for each full-time federal employee in 2011-2012. The research released on Tuesday from the office of Parliamentary Budget Officer, Kevin Page, studied the effect of federal personnel expenses in the past 22-years, in view of governments’ intention to reduce the current federal employee workforce under new austerity measures.

The report concluded that present personnel expenses are “significant,” as they surpass the limit of $43 billion in 2011-12 for a total workforce of 375,000 employees. This estimate accounted for roughly 2.5 per cent of Canada’s Gross Domestic Product, i.e. just over 38 per cent of the government’s direct program spending. Moreover, the report found the public-sector compensation to have surpassed the country’s business sector, provinces and territories, along with consumer price index, which measures Canada’s inflation rates.

Even though the growth rate of full-time employees is anticipated to reduce even lower in 2014-15 based on the study period, research points out that the sector will still cost more in the next two years, since personnel expenses and total compensation per employee are expected increases. Moreover the report pointed out loopholes in reporting and transparency since it related the federal government’s assurance of reducing the public-sector workforce by 19,200 over the next three years. Page is simultaneously currently entangled in a court battle with Parliament Hill which is aimed to access about the slated cuts.

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