New research from the Centre for Future Work shows that cutting public sector jobs and wages would directly undermine the delivery of essential public services at a challenging time in Queensland’s history, and hurt the state’s economic recovery.
Key Findings:
- Some 480,000 positions are supported, directly and indirectly, by the provision of state-funded public services in Queensland — including 331,000 direct public sector jobs and over 150,000 private sector positions
- For every 10 direct jobs in state-funded public services, another 4.5 jobs are supported in the private sector
- Regional and remote Queensland is most reliant on state public sector workers, who account for almost 12% of total employment in remote regions
- Fiscal austerity could cause cumulative losses (over three years) of $9–$16 billion in state GSP and the loss of 20–35,000 person-years of private sector employment
“A more constructive response to the COVID crisis is to expand the economic and social footprint of government, not shrink it,” said Dan Nahum, Economist at the Centre for Future Work.