Public sector job growth falls to lowest pace since COVID
Australian public sector jobs grew just 2.3 per cent in 2025-26, the slowest rate since the COVID pandemic began.
Public sector job growth across Australia has stalled to the slowest pace since COVID, rising just 2.3 per cent over the past financial year. Health and social work roles led the modest hiring bump, with 29,700 new jobs and wage growth of 8.5 per cent.
Education and training added 17,400 roles with wage rises of 5.2 per cent. Wage growth overall slowed to 6.6 per cent in 2025-26, down from 7.8 per cent the year before.
The Australian Bureau of Statistics said the slowdown reflected lower growth in Commonwealth and local government jobs, though state and territory governments continued to expand. Together, health, education and public administration account for nearly 90 per cent of all public sector employment.
- 2.3 percent
- Job growth rate
- 29,700
- Health and social work jobs added
- 17,400
- Education and training jobs added
- 266.1 billion dollars
- Total public sector wage bill
Why it mattersSlowing public sector hiring signals tighter budgets and limits job security for Australians in government roles, while slower wage growth reduces spending power.
AustraliaAustralian public sector workers face tighter wage growth and fewer job opportunities, affecting millions employed in health, education and government roles across the country.
✓ Claims checked against the source. checked 1 h ago
