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OTTAWA • Remember all that talk of “dead money” on corporate balance sheets and too few people on company payrolls?

[np_storybar title=”Record public sector layoffs slam Canada’s job market in July” link=”http://business.financialpost.com/2013/08/09/canada-loses-39000-jobs-in-july-as-jobless-rate-rises-to-7-2/”]OTTAWA — Government policy penchants for reducing the size of the public sector have cut a major swath through Canada’s employment rolls.

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In July alone, 74,000 fewer people received government pay cheques — most of them were working in the healthcare sector and social assistance programs.

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And how with businesses not investing enough on machinery and workers, Canada’s economy was having to rely on meager job creation from a restrained public service to help sustain any kind of recovery?

Well, now it’s crunch time.

That record 74,000-job crash in the public sector that we heard from in July may have brought with it some new clarity — and urgency — to the country’s post-recession reality.