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Canada Post Delivers 60% Less Mail But Costs Taxpayers $2 Billion More

Date: May 21, 2025

**Figure:** Mail volume has dropped 60% since 2006 while costs climbed to $6.9 billion in 2023.

A new 20-year analysis of Canada Post reveals a dramatic decline in mail delivery volumes paired with rising operational costs. Since 2006, the number of letter mail items delivered has dropped by 60%, while annual operating costs have ballooned by nearly $2 billion. Despite an increasingly digital society, operational efficiency has not improved in line with demand.

According to internal projections and public data from Canada Post’s annual reports, the cost to deliver traditional mail has increased significantly per item. Canadians are relying more on digital communication and parcel delivery services, yet the structure of the Crown corporation has changed very little over the past two decades.

Key Stats

Mail volume declined from 5.5B pieces in 2006 to 2.2B in 2023
Operating costs rose from $5B to $6.9B over the same period
Labour accounts for over 70% of total costs (approx. $4.9B)
Canada Post recorded operating losses in multiple recent fiscal years
Parcel volume increases have not matched the decline in letter mail

Why This Matters

With digital communication replacing physical mail, Canadians are sending fewer letters than ever. Yet maintaining nationwide delivery infrastructure and growing parcel demand haven’t resulted in cost savings — instead, the financial burden on Canada Post has increased. The average household continues to subsidize a legacy system that is no longer aligned with public behaviour or expectations.

This data raises important questions about public accountability, operational transparency, and the sustainability of a publicly funded delivery service. Reimagining Canada Post’s business model could not only reduce the taxpayer burden but also allow for reinvestment into innovation and service improvements.

What Needs to Change?

Reform Canada Post’s mandate to reflect a digital-first economy
Streamline logistics and explore regional service partnerships
Rethink labour and delivery models for long-term sustainability
Increase automation and reevaluate rural coverage strategy
Integrate public-private delivery innovations for efficiency

About Bankruptcy-Canada.ca

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Website: https://www.bankruptcy-canada.ca

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