07:15 AM EDT, 07/15/2025 (MT Newswires) -- Beneath Canada's strong June Labour Force Survey (LFS) of Friday was the fact that public administration employment continues to grab an increasing share of the job market, said Bank of Montreal (BMO).

Since 2016, public administration employment has been up almost 40%, or more than twice the growth seen in the rest of the job market, note the bank. BMO uses public administration since it will pick up health care and education jobs too.

While the COVID-19 pandemic widened the gap, public administration has been outpacing on job growth both before the disruption and after 2022, stated the bank.

Looking ahead, this source of job growth is likely to flatten out, with federal hiring expected to pull back, pointed out BMO. The Liberal platform targeted $13 billion in savings from "government productivity" by FY28/29, and some of that is presumably going to be pulled forward due to more immediate budget pressure elsewhere.

Even if there aren't "drastic" outright public administration job cuts, the bank expects hiring to flatten, which would leave other areas of the job market -- such as the private sector -- to make up the gains.