“Australians are in recession following six consecutive quarters of negative per capita GDP growth, yet they are being forced to pay for a ballooning public service, which is placing further pressure on taxpayers already facing a cost-of-living crisis,’’ said Daniel Wild, Deputy Executive Director of the Institute of Public Affairs.
New Australian Bureau of Statistics (ABS) public sector employment and earnings data for the 2023-24 financial year, released today, show the dramatic increase in the size and cost of the public service at state and federal levels. IPA’s analysis of the data shows:
- The total number of public sector employees as of June 2024 was 2,517,900.
- Since June 2022, there has been an additional 169,500 people employed in the public sector.
- Public sector wages and salaries cost taxpayers $232.1 billion in FY 23-24.
- Since June 2022, there has been an additional $31.1 billion spent on public sector wages and salaries, or a 15.5 per cent increase.
- The sectors that experienced the largest increases in the number of public sector employees were education and training, public administration and safety, and health care and social assistance. Since June 2022, there has been an additional:
- 52,300 public sector employees within education and training.
- 50,800 public sector employees within public administration and safety.
- 43,000 public sector employees within health care and social assistance.
“You would be forgiven for thinking the only growth industry left in Australia is bureaucracy. Of course, what follows is the bigger the bureaucracy, the more rules, red tape, and regulation of the productive sectors of the economy and small business especially,’’ said Mr Wild.
“The cost of Australia’s public sector is exorbitant, and over just the past two years alone there has been an additional $14 billion spent on public sector wages and salaries for no discernible improvement in service delivery to the community.”
“Most Australians understand there has to be a certain number of people employed to maintain public order and ensure the efficient running of government. However, today’s data shows the current size and cost of Australia’s public sector is simply unsustainable,” said Mr Wild.
The ABS data reinforces previous IPA research that demonstrated the need to implement regulatory reforms that lower the size of government, as well as reducing red tape, and streamlining approval processes to make it easier for private business to flourish.
“Our political leaders need to be reducing the size of government and cutting red tape to unleash prosperity and lift Australians out of recession,” said Mr Wild.
“While federal and state governments continue to spend billions of dollars employing more public servants, Australians know all too well that the quality of public services in local communities have not improved, rather, they have significantly deteriorated.”
“With Australia in a prolonged cost-of-living crisis, alongside a bleak economic outlook and personal recession, governments at all levels should be focused on policies that will create productive jobs within the private sector, not simply expanding their own departments,” said Mr Wild.
To download the IPA’s previous research click here.
