Government recruitment in Australia is moving into a more selective phase.
The public sector remains one of Australia’s largest employers, and frontline workforces continue to expand in areas such as health and education. However, the latest vacancy data, Victorian workforce reforms and government budget decisions point to greater scrutiny of non-frontline recruitment, organisational structures and workforce costs.
For public sector hiring managers, the market increasingly demands precision. Roles need a clear business case, approved funding and well-defined capability requirements. For candidates, government continues to offer stability, purpose and flexibility, but recruitment activity varies considerably between jurisdictions, agencies and occupational groups.
Indicator | Latest available figure | Reference period |
|---|---|---|
Australian public sector employee jobs | 2,597,300 | June 2025 |
Commonwealth government employee jobs | 385,900 | June 2025 |
State government employee jobs | 1,993,400 | June 2025 |
Local government employee jobs | 218,000 | June 2025 |
Australian Public Service employees | 198,529 | June 2025 |
Public sector job vacancies | 35,700 | May 2026 |
Victorian state public sector headcount | 393,663 | June 2025 |
Victorian state public sector FTE | 322,266 | June 2025 |
Victorian public sector flexible work participation | 71.0% of survey respondents | 2025 |
Victorian public sector ongoing employment | 78.7% | June 2025 |
These figures come from different statistical collections and should not be treated as directly interchangeable. For example, the ABS figure of 385,900 Commonwealth government employee jobs includes Defence Force personnel and other Commonwealth public sector employers, while the Australian Public Service had a headcount of 198,529 employees at June 2025.
Australia recorded 2,597,300 public sector employee jobs in June 2025, an increase of 3.3 per cent from June 2024.
This included:
385,900 Commonwealth government employee jobs
1,993,400 state government employee jobs
218,000 local government employee jobs
State governments accounted for approximately 77 per cent of all public sector employee jobs, reflecting the scale of state-delivered services such as health, education, emergency services and transport.
The national figure measures employee jobs rather than unique people. A person holding more than one public sector position may be counted more than once.
The most current indicator of government hiring demand is the ABS Job Vacancies Survey.
There were 35,700 seasonally adjusted public sector vacancies in May 2026, down:
7.9 per cent from February 2026
4.9 per cent from May 2025
By comparison, private sector vacancies declined by 1.4 per cent over the quarter and 1.8 per cent over the year.
This does not mean government recruitment has stopped. It indicates that the number of vacant public sector positions being actively recruited at a particular point in time has eased.
Hiring conditions will continue to differ between frontline services, core departments, statutory authorities, councils and specialist occupations.
At June 2025, the Victorian state public sector employed 393,663 people or 322,266 full-time equivalent employees. This represented approximately 9.9 per cent of Victoria’s labour force on a headcount basis.
Victorian public sector FTE employment increased by 2.3 per cent during the year. However, most of that growth occurred outside the core Victorian Public Service:
Victorian Public Service FTE increased by 1.5 per cent, or 833 FTE
Public entity employment increased by 2.5 per cent, or 6,557 FTE
Government school employment increased by 4.5 per cent, or 3,582 FTE
Public healthcare employment increased by 1.8 per cent, or 2,087 FTE
This supports a more nuanced description than simply saying Victorian government employment is expanding or contracting.
Frontline and service-delivery workforces have continued to grow, while many central and non-frontline functions are facing tighter scrutiny.
The Victorian Government’s Independent Review of the Victorian Public Service recommended approximately $5 billion in savings over four years, including a reduction of more than 2,000 ongoing FTE across the VPS and broader public sector.
The government has also committed to reducing 332 executive and similar roles and lowering the proportion of senior VPS5 and VPS6 positions. It has stated that workforce changes will be managed through workforce planning, natural attrition and employee consultation.
A formal policy introduced in July 2026 also sets out how Victorian departments are expected to implement budget reprioritisations affecting activities and resources across the VPS.
For recruitment teams, this is likely to mean:
More scrutiny before roles are approved
Greater focus on replacement and essential capability hiring
Reduced appetite for duplicated leadership or corporate functions
More internal mobility and redeployment
Continued demand in frontline and priority service areas
This is a workforce rebalancing rather than a uniform freeze across the entire Victorian public sector.
The Australian Public Service employed 198,529 people at June 2025, of whom 184,442, or 92.9 per cent, were ongoing employees.
Ongoing APS engagements decreased by 15.4 per cent during 2024–25, while movements between APS agencies decreased by 15.9 per cent. The APS nevertheless remained larger than it had been one year earlier.
The 2026–27 Federal Budget forecasts an Average Staffing Level of 217,256 across General Government Sector agencies, compared with a revised estimate of 215,941 for 2025–26.
The government describes overall staffing as broadly steady, with increases concentrated in priorities such as frontline service delivery, defence capability, integrity, fraud prevention and the establishment of new government functions. Some staffing growth also reflects the conversion of externally performed work into public service positions.
Government recruitment is becoming less about general headcount growth and more about securing capability that supports service delivery, reform and major government priorities.
The APS Data, Digital and Cyber Workforce Plan 2025–30 identifies growing demand for employees who can deliver digital services, use government data effectively and manage cyber security risk.
The plan establishes a coordinated approach to attracting, developing and retaining specialist data, digital and cyber capability across the APS.
The APS has established three additional professional streams:
Complex Project Management
Evaluation
Procurement and Contract Management
These were created to strengthen capability in areas considered critical to effective public administration.
Victorian government schools and public healthcare were two of the largest contributors to state public sector workforce growth in 2025. National public sector employment also increased in both education and training and health care and social assistance between June 2024 and June 2025.
Government investment in integrity, regulatory administration, contract management and fraud prevention is likely to sustain demand for professionals with governance, audit, legal, compliance, risk and investigation experience. This is an inference based on current Commonwealth budget priorities and the establishment of procurement, evaluation and project management as formal APS capability areas.
In the Victorian public sector at June 2025:
78.7 per cent of employees were ongoing
14.2 per cent were fixed-term
7.1 per cent were casual
45.8 per cent worked part-time
However, not every part of government offers the same level of security. Project funding, machinery-of-government changes, workforce reforms and budget reprioritisations can affect the duration and certainty of individual positions.
Hiring organisations should clearly state whether a position is ongoing, fixed-term, externally funded or tied to a specific program.
In 2025, 71 per cent of Victorian public sector People Matter Survey respondents reported using a flexible work arrangement, up from 70.2 per cent in 2024.
Flexible work was even more common in the Australian Public Service, where 80 per cent of 2025 APS Employee Census respondents accessed at least one flexible arrangement. This included 68 per cent who worked away from the office at least some of the time.
These results should not be interpreted as evidence that every role can be performed remotely. Operational, frontline and public-facing responsibilities will continue to influence what arrangements are practical.
For office-based and specialist positions, agencies should communicate the actual working model rather than relying on broad statements such as “flexible work available”.
During 2025, 43,300 non-casual employees separated from a Victorian public sector employer, down 9.4 per cent from 2024.
New starters also declined, with 50,164 non-casual employees joining a Victorian public sector employer, down 14.8 per cent.
These figures point to lower overall workforce movement. They do not establish why employees are staying or why fewer people are commencing.
Possible influences may include fewer available positions, greater employee caution, public sector stability or changing workforce approval processes, but the available data does not isolate these factors.
The proposed 8.3 per cent gender pay gap should be removed.
The VPSC reported that, in 2025:
The mean Victorian public sector gender salary gap was 5.6 per cent
The median gender salary gap was 1.7 per cent
Australia’s commonly cited national gender pay gap was 11.5 per cent in November 2025, based on mean weekly ordinary-time earnings for full-time adult employees. However, this is calculated using a different workforce population and earnings methodology, so it should not be directly compared with the VPSC figures without qualification.
Finalise the position description, funding, classification, reporting line and approval pathway before advertising or commencing a search.
Consider the outcomes the organisation needs over the next two to three years. The right replacement may not have the same background or position design as the person who previously held the role.
Merit, fairness and transparency remain essential, but they do not require unnecessary delay or repetitive assessment stages. Current APS guidance supports recruitment processes that are both responsive and capable of withstanding scrutiny.
Confirm interview dates, panel membership and delegate availability before the campaign begins. This reduces delays between application close, assessment, reference checking and offer.
Advise candidates about expected timeframes, approval dependencies, workplace attendance, employment status and any factors that could delay an appointment.
Merit lists, talent pools and proactive market mapping can reduce the need to restart recruitment for every recurring or difficult-to-fill position.
Government continues to offer meaningful career opportunities, but candidates should not assume hiring conditions are consistent across the sector.
Candidates should:
Confirm whether a role is ongoing, fixed-term or project-funded
Understand the agency’s workplace attendance expectations
Address the stated capabilities and selection criteria directly
Demonstrate measurable service, policy, project or organisational outcomes
Research the agency’s current priorities and operating environment
Ask about approval timeframes and the expected recruitment process
Professionals with transferable capability in digital transformation, data, cyber security, complex project delivery, procurement, evaluation, governance and frontline services are likely to remain relevant across multiple government settings.
Australia’s government employment market is best described as large, stable and increasingly selective.
National public sector employment increased through June 2025, but public sector vacancies fell in the latest quarter. Victoria continues to expand frontline workforces while reducing or restructuring parts of its non-frontline public service. Commonwealth staffing is expected to remain broadly steady, with recruitment concentrated around priority capability and service delivery.
For hiring organisations, the challenge is not simply attracting more applications. It is identifying the capability genuinely required, reaching suitable candidates and completing a fair recruitment process without avoidable delays.
For candidates, government continues to provide purpose, stability and flexible employment options, but appointment opportunities will increasingly be shaped by funding priorities, workforce reform and demonstrable specialist capability.
W&Co Search partners with government departments, local councils, public entities and for-purpose organisations to identify leadership and specialist talent.
Our team provides targeted search, market mapping, salary guidance and recruitment advice designed around the governance, transparency and capability requirements of the public sector.
Contact W&Co Search to discuss an upcoming appointment, workforce requirement or public sector career opportunity.
Australia had approximately 2.597 million public sector employee jobs in June 2025. This included Commonwealth, state and local government employment.
Public sector recruitment has moderated overall. Public sector vacancies fell to 35,700 in May 2026, down 7.9 per cent over the quarter and 4.9 per cent over the year. Demand still varies significantly by jurisdiction, agency and occupation.
The Victorian state public sector employed 393,663 people, equivalent to 322,266 FTE, at June 2025.
Current government workforce priorities include data, digital, cyber security, complex project management, evaluation, procurement and contract management. Frontline health and education workforces also continue to grow.
Approximately 78.7 per cent of Victorian public sector employees were ongoing at June 2025. Fixed-term employees represented 14.2 per cent and casual employees represented 7.1 per cent.