Bureaucracy hits peak before cuts

The federal bureaucracy grew to its largest-ever size at the beginning of this year, despite signs that a harsh budget was looming.

A new profile of the Australian Public Service’s workforce says it added 1347 employees between June 30 and December 31 last year, employing 167,721 staff in total.

The headcount also shows the senior executive service grew slightly over the six months, even though the government capped its ranks.

The government employed 2828 senior executives at the beginning of the year compared with 2790 in June 2011.

Former prime minister Kevin Rudd imposed the cap in 2010, though the Public Service Commission can still permit agencies to employ extra SES officers if they can justify the positions.

The latest APS headcount is likely to mark a high point that will not be reached again for many years.

This month’s federal budget shows the government hopes to shed about 4200 full-time-equivalent jobs in 2012-13; the first significant reduction of the bureaucracy in 15 years.

The budget papers also indicate further losses of up to 8000 full-time staff in the following two years if the government maintains its economy drive.

Finance Minister Penny Wong acknowledged this month it was “a significant reduction”.

“We take no pleasure in this, but regrettably if we’re going to achieve the budget surplus and the fiscal strategy over the long term then we have to apply discipline across government, and that includes to the public service.”

She said she expected agencies to avoid forced redundancies, as there was “a lot of natural attrition in the public service”.

Labor reined in the bureaucracy’s rapid expansion after it won office, slowing its annual growth rate to 1.8 per cent during its first four years in government.

By comparison, the public service grew at a rate of 4.6 per cent a year during the Coalition’s last eight years in office.

The latest data also shows the median federal public servant is employed at APS level 5.

However, in Canberra, where two in five of the bureaucracy’s staff work, the median job is an APS6 position with a base salary of about $80,160.

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