AI in the Federal sector, August economics ICYMI and how to win new business through outcome-based projects
đ° On tap this week
Good morning âď¸,
In this edition, a summary of August key economic points in case you missed it, further analysis on the impact of tariffs on the Canadian economy and a review of business creation (and closures) across provinces through Stats Canâs latest release.
On CSJ Exclusives, we also explore the impact of AI and Carneyâs governmentâs intentions to drop the federal public sectorâs costs by 15%, especially in which of the public branches it will hit the hardest. Finally, we present some practical plays for staffing firms to win new business by pivoting towards outcome-based projects.
Happy reading!
Minh Dang - Editor-in-Chief - The Canadian Labour and Staffing Journal
Write to: mdang@staffingjournal.ca
Staffingâs future: measured in output, not in hires
The latest Statistics Canada release shows business-sector labour productivity fell 1.0% in Q2 2025, the sharpest quarterly drop since late 2022. Business output (real GDP) contracted 0.7%, the first decline in seven quarters, while hours worked still edged up 0.3%, meaning companies produced less with slightly more time on the clock.
Tariffâs bite: a strain, not a shock
Trade protection measures, especially tariffs on certain goods, are starting to leave their mark. According to RBC, targeted industries in Canada (manufacturing, transport, warehousing) are already feeling the pinch. These are not small disruptions. Exports of products hit by tariffs have fallen sharply, particularly in steel, aluminum, aerospace, and câŚ
How many Canadian federal public service workers can AI disrupt, and where.
The Canadian federal government, under its new AI drive, plans to use artificial intelligence more broadly throughout public service operations. Stephen Burt, the Chief Data Officer, has signaled that the adoption of AI may lead to some job cuts, though he does not specify how many or in which departments. The governmentâs goal is also to reduce programâŚ
More business creation in Alberta and Nova Scotia, steady in Quebec, cautious in British Columbia
Canadaâs business landscape has been quietly shifting over the three months leading to June, revealing pockets of resilience alongside signs of strain. According to Statistics Canada, the balance between companies opening and closing has tipped only slightly, but the underlying story varies dramatically depending on where you look and which industries aâŚ