False Economies

  • 27 May 2019

Budget-cutting political leaders regularly target the jobs and incomes of public sector workers as the first and most politically convenient target of their austerity measures. A new report considers the unintended consequences of one prominent austerity measure: the cap on public sector wage increases that has been in place in New South Wales since 2011.  The crusade to balance the books by downsizing headcounts, intensifying work, and freezing the pay of the workers who deliver essential public services can backfire. These are the unintended consequences of NSW public sector wage restraint.