The return of Parliament means focus is intensifying on upcoming budget cuts, but how will the local workforce and economy be affected?
Carleton University professor Ian Lee said Ottawa's economy won't grind to a halt after expected public service layoffs.
"These stories that Ottawa's going to become a ghost town, that it's going to be deserted . . . this is just nonsense," he said.
Lee authored a study of federal cuts in the 1990s, which he calls the biggest downsizing in Canadian history.
However, he said back then Ottawa's housing prices rose and unemployment barely budged because of severance.
"Most of (those laid off) were near retirement, very close to retirement or actually eligible for retirement," he said. "They took that cheque and then they rolled over onto their pension, their pension started coming in and they continued to buy groceries and all the other things that we do with our salaries."
The Conference Board of Canada estimates 9,000 public service jobs will have been eliminated by this year.
One estimate said between 11,000 and 22,000 total public service jobs could be cut in the capital region.
A local grocer said people are starting to change their buying habits,
"Basic broccoli (is selling) but French beans, not as quick as they used to be," said Isaac Farbiasz. "We see quite a few people during the day; how it affects them, they lose their jobs . . . it's going to affect them."
The Canadian Taxpayers Association said the public service has grown by 30,000 jobs since Stephen Harper became Prime Minister, so there's room to cut.
"The number one industry in Athens was the Greek government too," said Gregory Thomas. "Unless the government can afford to meet that payroll it's not good for anybody, so we'd like to see the government balance its budget."
Harper has promised that transfers to provinces and cities won't be cut.
With a report from CTV Ottawa's Norman Fetterley
