THOUSANDS OF FEDERAL JOB CUTS COULD RESHAPE CO-OP AND STUDENT EMPLOYMENT OPPORTUNITIES IN OTTAWA
Warnings that 26,000 federal public service jobs could be cut are raising concerns about how the changes may affect University of Ottawa students who rely on government placements for co-op and early career experience.
Ottawa’s economy is closely tied to federal public service, the city’s largest employer. For many students — especially those studying public administration, political science or international affairs — federal departments have long been a major source of internships and co-op placements.
Federal workforce adjustment notices have already placed tens of thousands of public servants at risk of losing their jobs. This uncertainty could ripple into the student employment pipeline as departments reconsider hiring plans.
The Canada Revenue Agency (CRA) said it is still evaluating what the changes may mean for future hiring.
In a statement to the Fulcrum, CRA media relations officer, Kim Thiffault said, “The Canada Revenue Agency recognizes the important role students play in building the public service workforce of the future and supports opportunities for them to develop the skills and experience they need to succeed.”
“The CRA is currently assessing how workforce adjustment measures and fiscal considerations may impact future student hiring,” Thiffault added.
Students are encouraged to continue monitoring Government of Canada job platforms for opportunities, the agency said.
Public Service emphasizes continued student recruitment
The Public Service Commission says student hiring remains a priority, even as the federal government reassess spending.
“Student hiring and co-op recruitment continue to help departments maintain continuity of services, foster innovation, and build a diverse and representative public service,” said Magdalena Bober of the Public Service Commission in a statement.
The commission’s student hiring has grown steadily over the past decade, increasing from 11,848 hires in 2015-16 to 15,155 in 2024-25. Programs like the Federal Student Work Experience Program (FSWEP) account for roughly 60 per cent of all student hiring and have also expanded over time.
Maintaining student recruitment is key to avoiding long-term skills gaps and ensuring a strong talent pipeline, even during periods of workforce reduction.
Federal government still a major co-op employer?
Despite the uncertainty, U of O officials say co-op placements remain strong — at least for now.
University president, Marie-Ève Sylvestre, said the university currently has more than 3,000 students enrolled in co-op programs, many of whom still work in federal departments.
“Our co-op program is well and thriving,” Sylvestre said. “We still have over 3,000 students who are enrolled in our co-op programs, many of them with the federal government.”
She acknowledged that some departments have reduced placements, but said others — including national defense, industry-related departments and Global Affairs — have expanded opportunities. The shift aligns with the university naming the Department of National Defense as the featured partner of its career week earlier this month.
To adapt, the university has been expanding placements beyond government, including partnerships with private companies, community organizations and NGOs in the National Capital Region.
“We’ve always had more placements than with the federal government,” she said, adding that the university has recently intensified efforts to diversify opportunities.
Diversifying placements amid uncertainty
Sylvester said the university is also exploring new experiential-learning models, such as student-led projects, hackathons and short-term “sprint” initiatives connected to government departments.
Some placements may also take the form of credit-based experiential learning rather than paid positions, she said.
The shift reflects broader labour-market changes affecting Ottawa, where thousands of residents work directly or indirectly in the public service.
Cuts to federal positions are “not good news for the national capital area,” Sylvester said, but she described the situation more as a shift than a collapse in opportunities.
“What we see is perhaps a repositioning and a shift in the trends and in the areas where there is growth,” she added.
Students still drawn to government careers
Even with uncertainty around public-service jobs, Sylvester said interest in programs connected to government work remains strong.
Applications to some social-science programs — including political science and international and public affairs — have increased between 10 and 20 per cent, she said in reference to last year’s enrollment trend.
She also pointed to other opportunities unique to Ottawa, including the city’s growing technology sector and its network of embassies and international organizations.
“The University of Ottawa is positioned in the national capital,” she said. “Of course that comes with the federal government, but there are many other opportunities here as well.”
For students in Ottawa, the stakes remain high.
The public service sector remains one of the largest employers in the region, with tens of thousands of workers in the National Capital Region.
That reliance means shifts in federal hiring can affect student job markets — from co-op placements to entry-level policy and administrative roles.
While it remains unclear how many student positions could ultimately be affected, universities and government departments say the situation is still evolving.
For now, students are being told to continue applying — but to be prepared for a changing landscape in Ottawa’s public-service job market.
