Contractor, consultant spending also down by 13%
The number of public servants in New Zealand has begun to decline, according to new data released by Finance Minister Nicola Willis.
Workforce statistics for the year ending June 30 reveal a 3.3% reduction in public service roles between December 2023 and June 2024, offsetting earlier growth.
The total public service workforce now stands at 63,537 employees.
"The 3.3% decrease in the overall size of the public service between December and June aligns with the government's commitment to a public service focused on performance and the delivery of essential services for New Zealanders," Willis said in a statement.
Public service numbers growth
Willis said that although the public service grew slightly by 0.7%, or 421 employees, over the year, the trend was largely influenced by decisions made by the previous government.
"The growth in public service numbers in the first half of 2023/24 was largely due to the decisions, work programmes, and priorities of the previous government," the minister said.
Spending on contractors and consultants also saw a significant drop, with a 13% reduction, amounting to $274 million in savings over the year.
"This shows the steps the government is taking to restore discipline to public expenditure and drive more value for money are working," Willis noted.
Shift in workforce structure
In addition to the overall decrease in public service numbers, the workforce structure has shifted, with fewer clerical and administrative roles but more frontline positions.
"There has been a 10.8% decline in the number of clerical and administrative staff and an 8.3% drop in policy advisors," Willis said.
But she noted that this drop has been "offset by increases in service delivery roles."
Contact centre workers, who are often the first point of contact for the public, saw a 16.9% increase.
There were also increases recorded in the number of inspectors and regulatory officers (+5.7%), as well as social, health, and education workers (+1.5%).
"We've had to make some tough decisions. I feel for anyone who has lost their job, but no government can live beyond its means indefinitely, and we have to restore discipline to public spending by spending taxpayers' money as carefully as they do," Willis said.
