The South Australian Government has announced a partial freeze on recruiting non-frontline public sector workers, with the measure set to be a key feature of the upcoming 2026-27 State Budget.
Under the plan, State Government agencies will only be permitted to fill one in every two vacancies that arise in non-frontline areas over the next 12 months. The Government says the move is designed to improve productivity, reduce expenditure and help ease workforce pressures facing the private sector.
Importantly, frontline positions including teachers, police officers, doctors and nurses will be exempt from the recruitment restrictions.
The Government estimates the measure will result in around 1,000 fewer full-time equivalent positions than would otherwise have been created, delivering annual savings of approximately $120 million.
Premier Peter Malinauskas says, “Our state is at full employment, and our businesses are in desperate need for workers as they look to grow their productivity. This challenge is only set to grow with a massive program of mining, AUKUS and other growth opportunities ahead of us.
“Now is not the time to have public sector growth crowding out the private sector.”
The Government has stressed that the measure does not involve forced redundancies and will instead rely on natural staff turnover.
According to Treasury forecasts, the policy is intended to maintain essential government operations while encouraging skilled workers to move into industries experiencing labour shortages.
Treasurer Tom Koutsantonis said, “An efficient and streamlined public sector is important in pursuing improved productivity. With AUKUS, Olympic Dam and a new era for Whyalla on the horizon, reducing the public sector intake will help the private sector to fill crucial jobs at a time when the labour market is tight and demand for labour is high.”
The hiring restrictions will sit alongside the Government’s existing annual efficiency dividend measures, which aim to encourage agencies to deliver services more effectively while managing budget pressures.
While the policy is expected to generate substantial savings for the State Budget, the Government maintains that frontline services will continue to grow, with further investment planned in health, education and policing.
