Public sector risks job losses under opposition plan

The opposition’s proposal to restrict the growth of the public sector will cost jobs, say economists.

Venstre, parliament’s largest party, wants to hold the size of the public sector constant starting in 2020.

Economists said a constant public-sector budget would mean that lawmakers would need to decide whether to use funds to invest in technological advances or keep the same number of employees.

Other points of the proposal, such as privatising a number of services, would also require employees to be let go. 


SEE RELATED: Productivity commission attacks bureaucracy

Interested in receiving stories like these delivered to your inbox by 8am each weekday? Sign up for the Morning Briefing or any of our other newsletters today.