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@lemmy.nz
    2·
    6 months 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.

    • Dave@lemmy.nzM
      1·
      6 months 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@lemmy.nz
        2·
        6 months 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.