Photo: RNZ
Former and current public sector workers say the job market in Wellington is already tight, after a crackdown on contractors and consultants last year.
Government agencies are looking to axe hundreds of jobs over the next few months, after orders to cut down on spending.
Sally, not her real name, was a public sector contractor for eight years, until her last job ended in December. Her public sector-employed husband is currently the family's sole earner - at least for now.
The couple has had to take a hardship break from their mortgage to make ends meet.
"We've also dropped now to the minimum payments, adding over 10 years, close to 20 years to the length of our mortgage," she said.
"But in terms of impact as well, you know, obviously I'm not paying tax to anyone, and then we've just pulled back all of the expenses."
That includes things like using the local lawnmowing and hairdressing services, and pulling their son out of after-school activities.
"I think it's a blunt instrument to use a head count as a way of cutting down," Sally said.
"I've lived overseas and I think New Zealand provides good public service. I saw, for example, how many IRD call centre workers there are and already it can be a slow wait to get IRD on the phone but you do actually get them ... I see progress here."
Are you affected by the public sector cost-cutting measures? Contact soumya.bhamidipati@rnz.co.nz
Roxani Rahn was at the Ministry of Business on a fixed-term contract that ended last month. If she gets another job, it would likely be at a lower seniority level and include a 20 percent paycut. If she cannot find one, the family may have to move.
"I've been applying for over 40 jobs in the last couple of months," she said.
"But it is really, really hard. If I don't find something within the next few months then we are considering relocation because we are barely able to cover our costs on one income."
That was before the expected influx of newly redundant public sector employees.
The Public Service Commission revealed on Thursday the number of government workers increased by another 4.1 percent in the final six months of last year, despite an order to cut costs by the previous and current governments.
However, Rahn said that was probably because of the swing taken at contractor and consultant numbers.
"What has happened in the last few months is a lot of people who would usually work in contracting agreements or fixed-term agreements, they were trying to get into permanent roles to avoid not getting an extension," she said.
"The least harmful way to let someone go is to just have the contract end and not extend it, but because there are no other opportunities around, or very limited opportunities, those people are all in the job market and are all trying to get in, plus the permanent people who are being made redundant."
Renee, not her real name, was a permanent employee at Inland Revenue for 34 years before she took voluntary redundancy five years ago. She is currently temping at another government department, after the contract roles dried up last year.
She said she did not envy those being offered voluntary redundancy at the moment.
"I had a very good redundancy clause in my contract so I was okay but a lot of them aren't like that now," she said.
"You've got to almost have another job lined up. If you've only ever been in the public sector, where do you go if everything's getting cut?"
Renee's husband also worked in the public sector and his agency announced its plan to cut jobs this week. They were just one of many families feeling anxious and let down.
"Cost of living and everything is higher, you're a little bit more nervous about what that might mean," she said.
"I jokingly said to my husband, 'Well, we have to sell the house,' but it's like then where do we go? Do we go across the ditch? Do you know what's available over there? You have to start to think about the options, especially if you're in a house with just public servants in it."
The Department of Conservation and the Department of Internal Affairs were expected to be the next to announce their plans for cuts over the coming week.