It's not just the public sector feeling the pain - and there is more to come across the country, economists say.

Surely all these people losing decent paying jobs will have no impact on the economy right? Definitely not a recession right?

  • @TagMeInSkipIGotThis
    2•28 days ago

    Yeah if 26k are dropped from the public service then there will definitely be businesses that supply the public sector that will also downsize as a result. Then there’s the indirect impact - particularly in Wellington - of fewer public services spending money with local businesses that will then also cause a contraction in their profits.

    • @DaveMA
      1•28 days ago

      But the article doesn’t say 26k public service workers, it says 26k people total. So the 26k forecast must surely include flow on impacts of the 4k+ public service jobs lost?

      • @TagMeInSkipIGotThis
        2•28 days ago

        Oh right, sorry I didn’t catch that part.

        I guess its hard to know - because 26k probably includes people made redundant as part of the general downturn triggered by the reserve bank.