The government workforce in 2025 is navigating budget constraints, shifting skill expectations, and the slow but steady rise of technology adoption. Across both Australia and New Zealand, public sector leaders are being asked to do more with less. Fifty-five percent of teams have experienced budget cuts, and only 12% report any increase in funding. This has led to workforce strategies that favour short-term hires, multi-skilled candidates, and greater reliance on automation to maintain service delivery.

While job applications for government roles have increased, hiring managers are narrowing their focus. Agencies are seeking highly specific skillsets and experience, particularly as applicant volumes surge, with many candidates lacking relevance for advertised roles. In this environment, speed, clarity, and targeted recruitment are essential.

Upskilling remains a priority—but its form is changing. Bite-sized training, digital learning, and targeted leadership development for junior professionals are becoming more common in Australia. In contrast, New Zealand’s development budgets are under pressure, with many public agencies suspending formal training initiatives altogether.

Technology, including AI and automation, is starting to reshape how public sector services are delivered. While still in the early stages of adoption—particularly in New Zealand—virtual assistants, chatbots, and natural language processing tools are increasingly being used to streamline interactions and triage service delivery. At the same time, stakeholder engagement, digital literacy, and policy responsiveness remain critical skills for professionals at every level.

“There’s a tiger holding a tail and they don’t quite know what the tiger is.”

In this trans-Tasman discussion, people2people Recruitment Consultant Nicole Consterdine is joined by Chelsea Dale, Major Accounts Manager, and Peter Crestani, Branch Manager at Frog Recruitment, to explore the evolving realities of government work.

Dale explained that in Australia, value-for-money hires are top of mind. “Hiring managers are focusing on candidates who can wear multiple hats or bring transferable skills,” she said. Particularly in state government, short-term contracts are being favoured over permanent roles, helping agencies manage headcount costs while maintaining project momentum.

Crestani, reflecting on New Zealand, shared a different trend. “Hiring managers are being more specific about what they want… very much honing in on a particular skill set.” The flood of applicants—upwards of 500 for some roles—has made this focus necessary. “Just because you get a whole lot of applicants doesn’t mean you get the right kind of people,” he added.

On professional development, Dale reported a shift toward low-cost, high-impact options. “Team leaders are encouraging more bite-sized learning… one- to two-day virtual courses, TAFE courses,” she said. These are designed to prepare junior and mid-level staff for future leadership roles. In contrast, Crestani highlighted budget cuts in New Zealand: “Development budgets… they’re often the easiest things to go,” he noted. This places the onus on individuals to seek their own growth opportunities.

In terms of essential skills, both guests agreed on the importance of stakeholder communication and digital literacy. Dale cited psychological safety, conflict management, and change management as key areas of focus—especially in light of recent legislation. “There’s a stronger push to build leadership skills,” she said, particularly at the VPS3/APS4 level and above.

Crestani echoed these themes, noting that stakeholder engagement will be “even more important” going forward. “We need that creativeness, the relationship skills, and the technology understanding,” he added. As the nature of government work evolves, professionals must balance interpersonal insight with technological fluency.

Technology’s impact, while early, is becoming tangible. Dale described widespread use of AI-powered chatbots on government websites to reduce wait times and improve user navigation. “Natural language processing is being used to sort complaints and route urgent claims faster,” she said. Crestani, meanwhile, noted that New Zealand’s government remains cautious. “They don’t quite know what the tiger is,” he said, describing AI adoption as in the “investigation” stage. However, training is now being delivered to senior leaders to prepare them for its eventual integration.



Looking ahead, Dale predicted greater emphasis on productivity over hours worked and more movement toward four-day work weeks. Environmental policy and sustainable infrastructure will also drive workforce priorities. Crestani, for his part, pointed to macroeconomic conditions, elections, and global instability as the biggest variables. “It’s going to be quite a changing market over the next five years,” he concluded.

Practical Takeaways for Government Employers in 2025

• Focus on value-for-money hires: seek candidates with multiple competencies to maximise limited headcount.

• Target professional development through low-cost, high-impact learning for junior and mid-level staff.

• Ensure clarity and precision in job ads to filter large applicant volumes more effectively.

• Invest in digital tools like chatbots and automation to support service delivery without increasing staff load.

• Prioritise stakeholder engagement and digital literacy as critical skills for current and future teams.