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What public-sector skills will be most in demand in the private sector? We ask HR experts

February 10, 2026

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Federal civil servants with skills in high-demand areas could be snapped up by private-sector employers in the current labour market, while those with more general backgrounds may need to think about re-skilling, HR observers say. The 2025 federal budget outlined plans to cut nearly 40,000 public service positions by 2028-29. Since last fall, thousands of public servants in various departments and agencies across Ottawa have received workforce adjustment notices, meaning they could be in a layoff situation. Kathryn Tremblay, co-founder and owner of Ottawa’s Altis Recruitment, says it’s already an employer’s market in the city. “However, it’s a strange market,” she added. “There’s almost two labour markets happening right now. There is the labour market where there are a lot of people applying for work, but then in the highly specialized skills area, it’s a very small pool.” As a result, some public servants might find the transition to the private sector a little easier. Tremblay said those with “high-demand skills” should make a smoother transition, including bilingual employees as well as those in positions related to health care and project management. “The defence sector in Ottawa is really taking off. It’s always been present, but it’s expanding. With that expansion, if (ex-public servants) have worked in anything military or defence-related, what an incredible opportunity,” she said. At the same time, employees with very specific skills could struggle. “If you left the federal government after only 10 years and you were working in HR, you’re going to take a few courses, maybe reposition your scope and continue. But let’s say you were a specialist in marine-related work at Fisheries and Oceans Canada. It might be a little bit harder to position yourself in the fisheries sector, but perhaps you can take your program management experience and translate that into a different industry,” Tremblay told OBJ. Either way, HR experts say a huge shift is looming in Ottawa’s job market, one that may re-shape the city’s employment landscape. “I think Ottawa is pretty uniquely positioned for a moment like this. The federal public service has built deep strengths like policy, project management and delivery, compliance, data, tech. I think a lot of those (in the) private sector and non-profit sector are going to benefit from those in transition,” said Heidi Hauver, who has worked in HR at Invest Ottawa and Pythian and recently joined Ranovus as its vice-president of people and culture. David French, president of PMC Training, believes Ottawa is in a good position to manage this change. “We have a resilient, well-educated workforce in Ottawa. It’s just going to shapeshift a little but I think we can create a lot of new opportunities. It’s a bit of a dark cloud when we look at it from the civil service side, but there are some rays of sunshine. We have the defence sector. We have technology,” he said. Former public servants could also transition to working with organizations that have the federal government as a client, Hauver added. “Those organizations are absolutely going to be able to tap into that talent, because (former public servants) understand that ecosystem in a way that (a) private-sector organization doesn’t,” Hauver said. Whether they look for a private-sector equivalent to what they did in the civil service or transition to a new career, Tremblay said many employees will be looking to re-skill or up-skill. “Re-skilling looks like a lot of different things. If (ex-public servants) can identify two types of roles that they see themselves going into, they should look at what those jobs look like. They (should) explore what certification is required, what buzzwords or language is included and what courses are available. “They really could take some virtual, free courses outside of the public service to help them reposition their language, because the federal government has its whole distinct vernacular, acronyms and words that some of us might not be using because it’s very specialized,” she said. Employees leaving the public service should look at their current skills and how they translate to the private sector and investigate how post-secondary institutions could help fill the gaps, Hauver said. And while former public servants will need to make an effort to apply their knowledge to private-sector jobs, French said re-skilling isn’t just an employee’s challenge. “We have to invest in our workforce, because they won’t necessarily have all the skills for tomorrow. There are certain skills that are worth investing in, because they will last whatever the latest thing is, like AI. So those are transferable skills like communication, leadership, management, teamwork. They're the ones that are going to be a struggle for the next generation of workers,” French told OBJ. And while private-sector employers might have the pick of talent, French said they should review their company culture in order to retain newfound talent. “Even if there are people coming into (the job) market, if you're not a place where people would want to go work because you're just not a good workplace, it doesn’t mean they’ll stay engaged or perform their best. It’s a two-way street,” he said. Some former public servants might take the opportunity to start a new career, Hauver said. “It’s not lost on anyone that this is going to be difficult but … it can also potentially create a bit of an opportunity for people to reimagine what’s next,” she said. “(It’s about) digging deep. What are the things that you’re passionate about? This is that moment in time for some of those people to follow those interests and passions and take those transferable skills and maybe recreate what's next for them in a way that they hadn't anticipated. “(Ottawa is) a thriving centre for entrepreneurs … Our entrepreneurship community is going to benefit because we've potentially got individuals with a lot of skill sets and experience who may want to start their own business or elevate another founder or entrepreneur who's building something that they really care about,” she said. Assessing how the Ottawa labour market will change, Tremblay said she thinks the city will be able to recalibrate. “This isn’t the first time the government shrinks. That ebb and flow will always be there and I think our city will adapt very well … I think those that are re-tooling and repositioning may have to look outside of Ottawa, but I think if they look in Ottawa first, many of them will do very well.”