THE government needs to lead by example and reduce its escalating headcount and costs, business leaders have said.
Recently published statistics revealed that the number of public sector jobs had risen by 1,570 from June 2018 to June 2023 – an increase of 20% over five years, which has been labelled “deeply worrying” by a leading business expert.
The total number of private sector jobs grew over the same period by 1,490, which was a 2.7% increase.
The government has stressed that most of the jobs in the 430 increase from last June to this June are in education. States Employment Board vice-chair Andy Jehan added that SEB was doing all it could to “recruit into essential jobs but stop unnecessary ones being created”.
Business leaders have raised concerns about higher government wages adding to inflationary pressures.
Natasha Egré, who is chair of the Jersey branch of the Institute of Directors, said that when Chief Minister Kristina Moore spoke to the IoD last year, the politician told members “that the government could not keep recruiting staff, considering current Island conditions regarding housing and productivity”.
“However, the annual Labour Market Report has shown that public sector jobs have increased significantly,” Miss Egré said. “It’s important for us to consider where these jobs have been concentrated. For example, the largest annual increase in staff has been in Children, Young People, Education and Skills, and it is clear how important it is for the Island to recruit into these roles and ensure education remains a key focus.
“However, our members do want to see increased scrutiny regarding the roles created in communications and the new Chief Operating Office, to ensure they are accountable and transparent in their objectives and deliverables.”
Miss Egré added: “I’ve heard from a number of members who are concerned about the growth in the cost of our public sector and how public sector job increases ultimately reduce resources for the private sector.
“We do not want to encourage a wage-price spiral whereby the private sector responds by offering higher wages to win back employees, as this all adds to inflationary pressure. If we are going to see an increase in public sector jobs, then at the very least we also need to see progress and less waste.
“A lean and efficient public sector is essential. The government spends around £1bn per year and we are all looking to them to lead by example in how they conduct their own business.”
Chamber of Commerce chief executive Murray Norton said the increase in public sector jobs “has been, and continues to be, a concern that Chamber has raised”.
He said: “During this period, we have heard that many of these roles are in the sectors of education and health where, understandably, we would all want the very best provision for the Island.
“In recent talks with the Chief Minister, we have called for greater data on the increased numbers outside these areas so we can see great clarity on the increases. Private sector job numbers have grown by 2.7% over the last five years, reflecting recruitment difficulties and businesses managing their costs in challenging conditions, in stark contrast to the public sector, with jobs up 20% in the same period.”
Mr Norton added: “In many cases, the public sector recruited from the private sector, further raising the issue of wage inflation. Businesses are still struggling to recruit and small steps such as greater government childcare support, would enable some of those not in employment to see it worthwhile to return to the workplace.
“Sustainable Economic Development Minister Kirsten Morel spoke to Chamber in June on the Future Economy, calling upon businesses to take up the challenge of increasing productivity to better manage the growth in a future population.
“It is the right ask, and good work from Jersey Business is helping businesses to achieve that but, as we pointed out to the minister, this challenge should also apply to the public sector.
“There are no easy answers and providing the delivery of government projects and public services we demand does need people to provide them, but reducing spending and managing the headcount are challenges government must face.”
Mortgage broker Peter Seymour was one of seven “angry men” who, in 2003, organised a protest against that year’s budget. The group kept a close eye on States’ spending and headcount for several years afterwards.
He said: “I cannot understand why this increase has happened in the way it has because, with automation, workloads are supposed be reducing, not increasing.
“We obviously don’t want more consultants to come in to see where reductions can be made, so I hope the government can find a way to get its own house in order.”
Another of the original “angry men”, Kevin Keen, who has previously been brought in by several struggling companies to help balance the books, expressed similar sentiments.
He said: “The latest numbers are deeply worrying. It is not only the added cost but I suspect some of these new jobs involve people being poached from the private sector.
“The government is telling the private sector to become more efficient and productive but it needs to start work on itself. Looking at the detail of the public sector job growth, the number of licensed jobs has increased by 54% over the last five years, and they are people who can buy a property straight away.
“The problem is, although no one objects to more nurses, teachers or police officers, we have seen jobs in the Chief Operating Office increase by 70 in the last year.
“The government has spent a fortune on IT but its headcount keeps on climbing. When will it all stop?”
