How Did Public Services Fare? A Review of Australian State Public Service Labour Markets During the Global Financial Crisis

Abstract

Public employment was traditionally seen as a ‘good job’, and governments were seen as ‘model’ employers. That reputation has faded in recent years due to factors including public management reforms that changed traditional public service employment. This research considers how the Australian public service labour market fared compared to the private sector during the global financial crisis. The research compares public and private sector outcomes in Australian states, focusing on two indicators of the size of the public service and wage outcomes. It finds that the global financial crisis did not enhance job prospects or conditions in Australian state public services, and potentially further detracted from public perceptions of governments as ‘model’ employers and the desirability of public service jobs. The crisis also highlighted the institutional tensions and complexities of the contemporary public employment environment.