New Zealand to Cut 14% of Public Sector Jobs in Austerity Drive

(CNA, Wellington, 19th, Comprehensive Foreign Report) The New Zealand government has announced it will cut nearly 9,000 public servant positions, equivalent to 14% of the public sector, by mid-2029 to reduce government spending. Finance Minister Nicola Willis stated the move is expected to save NZ$2.4 billion. According to the Associated Press, Willis said the government will also implement three consecutive years of budget cuts for most of the public sector, "significantly reduce" the number of agencies, and require departments to accelerate the adoption of artificial intelligence (AI) technology. Speaking to the business community in Auckland, the country's largest city, she said the austerity measures are expected to save the government NZ$2.4 billion (approximately NT$44.5 billion) during this period. According to Willis, the current size of the public sector is "not only unsustainable but also out of step with international trends." Authorities plan to reduce the number of public servants by 8,700 from December 2025 levels to 55,000. In the nation of 5.3 million people, this will lower the proportion of public servants from 1.2% to 1%. Positions such as military personnel, teachers, and doctors are exempt from the cuts. The downsizing will not begin immediately, and Willis did not detail the criteria for the layoffs. The center-right government, which took office in 2023, campaigned on shrinking the public sector and now faces a new general election on November 7. With New Zealand's economy stagnating, Prime Minister Christopher Luxon is hoping to show signs of recovery before the election and has made a series of promises to cut the public sector. Luxon said today that a more efficient public sector is "exciting," and he emphasized that "the public sector is not a job creation agency." However, opposition parties and unions have strongly criticized the layoff plan. Former Prime Minister and Labour Party leader Chris Hipkins warned that significant cuts would weaken frontline public services, and a union representing thousands of public servants criticized the move as "deliberate sabotage." (Compiler: Shih Shih) 1150519