Cutting Public Service Saves Nothing

Australia Institute

But new research by The Australia Institute's Centre for Future Work has found that sacking public servants actually costs the country money and makes providing services less efficient.

The new briefing paper - Restoring Public Sector Capability Through Investment In Public Service Employees - debunks several of the myths promoted in the political debate around the size of Australia's public service. One such myth is that Australia's public service is "bloated" or "inefficient".

The research found that, despite claims to the contrary, most of the public service jobs created since 2022 were not based in Canberra.

It also found:

Public servants make up 0.68% of the population, comparatively low by historical levels (0.75% in 2008)

The last time public service jobs were cut, they were largely replaced by consultants, contractors and labour hire workers. The process was not only expensive, it led to high-profile integrity failures and loss of public trust

Cutting public sector jobs means longer waiting times and problems getting essential support

Most APS employees are women (around 60%) and there's a growing number of public servants under the age of 30 (currently almost 16%)

Around 36,000 public servants have been hired since the Albanese government lifted the cap on APS staffing levels in 2022, taking the overall workforce to 185,343. In 2016 there were 155,607 public servants. The $20.8 billion spent on consultants by the Morrison government in 2015-2016 equates to 53,911 additional public servants

"Promising to reduce the size of the public service is a cheap political stunt," said Lisa Heap, Senior Researcher at The Australia Institute's Centre for Future Work.

"Sacking public servants doesn't save the country a cent.

"In fact, recent experience shows that sacking public servants actually costs the country a fortune.

"The Morrison government spent more than $20 billion on consultants and contractors in one year.

"Reducing the size of the public service leads to longer waiting times and problems for Australians accessing essential support. "

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