New Zealand's government plans to cut 14% of public sector jobs to slash spending

New Zealand National-led coalition government, under Prime Minister Christopher Luxon, is initiating a significant overhaul of its public finances, planning to cut approximately 9,000 public sector jobs, representing 14% of the workforce, by 2029. This drastic measure is a core part of its strategy to slash government spending, reduce the budget deficit, and pave the way for promised tax cuts. The previous Labour government had overseen a substantial expansion of the public service, which the current administration views as unsustainable. This move reflects a global trend of fiscal consolidation post-pandemic, as governments grapple with persistent inflation and elevated debt levels. For New Zealanders, these cuts signal a shift towards austerity, aiming to curb the nation's ongoing cost of living crisis and restore fiscal discipline. It underscores a strategic pivot in economic policy, moving away from increased state spending towards a smaller government footprint.