The Province of Ontario has altered their hiring in order to curb the "who do you know" type deal. All applications are reviewed at regional hiring centres, before being traded off to local management to interview - so the regional centres arrange your interviews.
The public sector has seen a huge, HUGE increase in overall wages in the last ten years - so the public believes. However, this does not match the rapid decline in public sector wages in comparison to the private sector during the 90's. Therefore, private sector is still making much more than the public sector on average.
Contrary to what they all say, your Hons. degree does help you. A lot.
But remember, gov't hires based on the "point" system. The application and interview are not like a business process, where you just make yourself look good. Everything is graded. What goes on the job posting information is there for a reason. So everything on there, you match in your cover letter and resume. I.E. if it says they are looking for someone with tact and people skills, list how/where you have demonstrated tact and people skills!
The applications with the most check marks get the interview. At the interview, the questions are all point based. Whoever gets the most check marks, gets the job.