New Zealand Plans Big Public‑Sector Cutback

The government says it will cut about nine thousand public jobs by 2029, a drop of fourteen percent. Finance Minister Nicola Willis explained that the plan will save two point four billion dollars over three years. Willis also wants to trim the number of government departments from thirty‑nine to an unspecified lower figure. The cuts will focus on agencies that can adopt artificial intelligence faster, according to her speech in Auckland. Wellington will see its public workers fall from seventy‑two thousand to fifty‑five thousand by the end of 2025. That means only one percent of New Zealand’s people will be in the public sector, down from one point two. The ministry says the military, teachers and doctors will be protected.Willis said the reductions are “unsustainable” and “out of step with international trends. ” Opposition parties and unions protest the move. They warn that shrinking staff will hurt frontline services. Some union spokespeople called the plan “willful destruction. ” The National Party blames earlier Labour rule changes for the growth in public employment. It argues that removing a job cap led to more contractors and consultants being hired instead of full‑time staff. If the government wins the November election, each of the next two budgets will cut agency funding by five percent. The plan also urges a faster adoption of digital tools to keep the sector efficient.