This report examines trends in the Australian labour market, specifically comparing employment growth in the public and private sectors from 2014 to 2024. The analysis finds that public sector jobs make up an increasing share of the total workforce, with the vast majority of new jobs post-Covid in the public sector.

The authors argue that while headline employment figures may appear positive, the shift should be seen as a cause for concern as it indicates a weakening economy and places a growing burden on taxpayers. The report recommends further investigation into the causes and consequences of this trend.

Findings

• Between August 2014 and August 2024 the share of the workforce employed in the public sector increased from 12.5% to 17.9%
• Between August 2014 and August 2022 76.5% of new persons employed were in the private sector.
• Between August 2022 and August 2024, 82.1% of new persons employed were in the public sector.
• The total number of new public sector jobs created since August 2022 has already outstripped the number created from August 2014 to August 2022 by approximately 40%.
• The surge in public sector jobs has occurred across every state.