Queensland Budget 2018: Public service wages grow at more than $1 billion a year

QUEENSLAND’S public service hiring spree continues to explode as the bureaucracy swells and workers enjoy above-inflation pay rises – and the Palaszczuk Government is banking on a slowdown to ensure its spending remains in check.

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QUEENSLAND’S public service wages bill is growing at more than $1 billion a year as the bureaucracy continues to swell and workers enjoy above-inflation pay rises.

But the government is banking on a slowdown to the recent hiring spree to contain costs over the next four years.

The public service has grown much faster than population over the past three years, surging by 7.1 per cent in 2015-16 and 2016-17 followed by an estimated 3.9 per cent this year despite a promise to the cap the increase.

That means the state’s public service is likely to reach 224,169 full time equivalent workers this year — 1,530 more than forecast in the last budget.

Public service growth is set to fall back to an average of 1.7 per cent from next year in line with the expected increase in population.

Queensland Premier Annastacia Palaszczuk (right) looks on as Treasurer Jackie Trad speaks on the State Budget. Picture: AAP/Dan Peled

Staff numbers will rise to 228,002 next year and reach 239,900 by 2021-22, according to Treasury analysis.

Total wages will rise from $21.3 billion last year to $22.8 billion in 2017-18 with employee costs forecast to reach $26.5 billion by 2021-22.

The 4.2 per cent increase in wage costs next year will be driven by a combination of the growth in staff and 2.5 per cent pay rises.

The government says the extra staff hired in recent years were needed to reverse the 14,000 job cuts under Campbell Newman’s administration.

Just over 90 per cent of the public service were engaged in frontline roles such as teachers, nurses and police officers as at March this year and essential workers will continue to make up the bulk of staff, according to the government.

“Much of the increase in employee expenses in 2018-19 is the key frontline service areas of health and education reflecting increasing demand for health services and student population growth,” the budget papers say.