Shots fired across Australia’s bloated public service

Australia’s unemployment rate is currently at a historically low 4.3%, and the Reserve Bank of Australia’s (RBA) most recent Statement of Monetary Policy predicts that it will continue around this level until the end of 2027.

The fundamental reason for Australia’s low unemployment rate is that government spending has resulted in a record increase in government-funded jobs.

Data from the Australian Public Service Commission (APS) shows that the number of federal public servants increased by 7.4% in 2024-25, to a record high of 198,529. The public service headcount has increased by 24.7%—or 39,350 people—since Labor took office in May 2022.