06/13/2012 12:15 EDT | Updated 08/13/2012 05:12 EDT

P.E.I. expects loss of 10-12% of federal jobs

Around 400 federal civil service jobs and more than $50 million in economic activity are at stake in federal cuts on P.E.I. coming in the next three years, a new study by McInnis Cooper estimates.

"This study shows that the large number of federal jobs cuts on Prince Edward Island is out of proportion with cuts in other areas," said Innovation Minister Allen Roach in a news release.

"We want the Federal Government to re-think its approach."

The consulting firm looked at 35 federal government units (departments, agencies, crown corporations etc.) on P.E.I. that employ 3,827 people.

The study estimated that

- Over the next three years 379 to 458 positions (between 10 and 12 per cent of the federal workforce on P.E.I.) will be eliminated.

- This will result in additional non-government job losses of between 247 and 298 for a total job loss projection ranging from 626-756 positions.

- This represents a P.E.I. GDP decline of between $50.46 and $61.02 million, or about 1.01 to 1.22% of the provincial GDP.

"Through these cuts, the federal government is putting our economic recovery and the viability of small communities at risk," said Chris Aylward, national executive vice-president of the Public Service Alliance of Canada.

The study was released Wednesday at a joint news conference of the P.E.I. government, the City of Charlottetown, the Public Service Alliance of Canada, and the Professional Institute of the Public Service of Canada.