TORONTO – The cost of salary and benefits for Ontario public sector workers has increased by 47% in less than a decade, growing at a significantly faster rate than either inflation or the provincial economy, according to a new Fraser Institute report.
How Compensation Spending Consumes Government Resources in Ontario concluded that even with current government restraint measures, up to three-quarters of all new spending on programs goes to cover staff pay.
“The compensation of government employees in Ontario currently consumes more than half of all program spending,” said the report, which was released Wednesday. “Ontario’s finances have become increasingly precarious due to the government consistently spending more than the revenue it collects. The growth in compensation spending has played a role in adding to the strain in the government finances.”