The public sector in New Zealand is currently facing a wave of job cuts as the government aims to reduce spending and increase efficiency. The Finance Minister, Nicola Willis, has directed public service departments to identify savings options of either 6.5 or 7.5 percent, with departments that have grown by more than 50 percent since 2017 allocated the higher percentage. This directive has led to a significant number of job losses across various ministries and agencies.
At Budget 2024, the government announced that it had met its baseline savings target of $1.5 billion average operating savings per year. However, Finance Minister Willis has not ruled out further job losses, with Minister for Regulation David Seymour indicating that the number could be up to 7500. Prime Minister Christopher Luxon has stated that savings across the public sector are being reinvested in frontline services and tax reductions.
Ministries and agencies have been announcing job cuts, with some citing tough economic times as the reason for the reductions. Beyond the core departments, other public sector agencies have also made cuts despite not being directed to do so by the Finance Minister. Crown entities such as WorkSafe, Callaghan Innovation, and Niwa have all announced job cuts as part of their cost-saving measures.
The impact of these job losses is being closely monitored by RNZ, with roles being counted across the wider public sector. It’s important to note that not all cuts are the result of government savings requirements; some are due to projects no longer going ahead under the coalition government, while others are vacancies that are not being filled.
Several key ministries and agencies have announced significant job cuts. The Ministry of Education is proposing to cut 755 positions, the Department of Corrections has disestablished 107 back-office jobs, Oranga Tamariki is cutting 419 roles, and ACC is cutting 300 jobs. Other agencies such as the New Zealand Qualifications Authority, Ministry for the Environment, Department of Conservation, and Transport Agency Waka Kotahi are also making significant reductions in their workforce.
Overall, the public sector in New Zealand is undergoing a period of significant change as departments and agencies adjust to meet the government’s cost-saving targets. The impact of these job cuts on public servants and the services they provide remains to be seen, but it is clear that the public sector landscape is evolving in response to the government’s directives.