Politics Blog - from 19 May, 2026

Thousands of public sector jobs could disappear under Government plans to shrink the size of the public service, with unions warning frontline services and Wellington’s economy will pay the price.

In a pre-Budget speech today, Finance Minister Nicola Willis is expected to outline proposals to merge departments, expand the use of AI and reduce the public service workforce to about 1% of the population by 2029.

Based on Stats NZ population projections of 5.5 million people, the Public Service Association says that could mean a workforce of about 55,000 - a reduction of up to 10,000 roles.

“This is an act of wilful destruction,” PSA national secretary Duane Leo said.

“It will devastate the services New Zealanders rely on every single day.”
Leo said New Zealanders deserved to know before the election which services could be affected.

“Will there be fewer biosecurity officers keeping pests and diseases out of the country? Fewer social workers protecting vulnerable children? Fewer people stopping online harm, child exploitation and scams?”

He said linking AI to staffing reductions risked turning technology “into a threat rather than a tool”.

“An arbitrary headcount target is not a plan. You don’t plan a workforce by picking a number that sounds good in a pre-Budget speech.”

Leo also warned further cuts would deepen the impact on Wellington, which he said had already been hit by two years of public service job losses.

“If the Government is so confident this is the right path, it should tell voters exactly what it means for them. Show us the evidence.”