Public sector wages in Australia have reached a record $232 billion, growing at the fastest rate in 15 years. This surge highlights the importance of government roles in the country’s economy—and for job seekers, it signals growing opportunities in a sector that’s both secure and impactful.
According to the Australian Bureau of Statistics, public sector salaries increased by 8% in the last financial year, reflecting both rising wages and a growing workforce. This is the biggest leap since 2008-09, and it’s clear that the public sector is investing heavily in its people.
In 2023-24, the federal government added more than 15,000 roles, including over 8700 new positions to reduce reliance on consultants and labour hire.
The federal public service now employs 365,400 people. Salaries have also grown, with Commonwealth employees earning an average of $102,130 annually—proof of the competitive remuneration available in these roles.
For job seekers, this expansion means more opportunities to join a sector that values stability, professional growth, and making a difference. Whether your expertise lies in policy development, administration, or frontline services, the federal public service offers diverse career paths.
State and Local Governments: A Hub of Opportunity
The states and territories remain the backbone of Australia’s public sector, accounting for 77% of public service jobs. With over 1.9 million employees working in frontline roles like education, healthcare, and policing, these positions directly impact communities across the country.
Queensland and Tasmania, in particular, saw substantial growth last financial year, with employee expenses rising nearly 10%. This was driven by both salary increases and workforce expansion—good news for job seekers eyeing roles in these states.
Local governments also employ over 213,500 people, offering additional opportunities for those passionate about serving their local communities.
Why the Public Sector Matters for Job Seekers
For those considering a career in the public sector, this growth is a promising sign. Public service roles offer more than just job security—they provide a chance to contribute to the well-being of communities while enjoying competitive pay and benefits.
The government’s shift toward insourcing has created opportunities in areas like IT, project management, and service delivery. If you have skills that align with these needs, now is an excellent time to explore what’s on offer.
Balancing Growth with Economic Concerns
While the public sector’s expansion is exciting for job seekers, it’s also influencing the broader economy. Economists note that increased government spending is helping to keep Australia’s labour market tight and resilient.
However, this growth isn’t without challenges. Public sector spending now accounts for a record 27.3% of GDP, with some experts cautioning that it could contribute to inflationary pressures. Governments are under pressure to balance the need for essential services with economic stability.
RBA Governor Michele Bullock recently acknowledged the careful approach governments are taking, highlighting the importance of thoughtful spending. For job seekers, this means a focus on sustainable growth and roles that deliver real value to communities.
What’s Next for the Public Sector?
Looking ahead, state governments are scrapping wage caps and investing more in their employees. These changes, combined with the federal government’s focus on insourcing, suggest continued growth in public sector opportunities.
Whether you’re just starting out or looking for your next career move, the public sector offers a unique chance to build a meaningful career. From shaping policy to delivering essential services, these roles are all about creating a better future for all Australians.
If you’re seeking stability, purpose, and a chance to make a difference, now is the time to explore the many opportunities in this thriving sector.
