Wellington’s economy is feeling the strain of deep government spending cuts that have led to thousands of public sector job losses and stalled hiring across key sectors. As New Zealand’s conservative government prepares its 2025 budget, many ministries are bracing for continued fiscal restraint. While officials argue the strategy is necessary to keep debt low and attract investment, critics warn it’s causing a “hollowing out” of the capital’s workforce and economic base. Business closures, declining house prices, and growing unemployment have fueled concerns that the cuts are punishing not just government workers, but the broader economy.
See "New Zealand's budget cuts punish public sector, business and workers", Lucy Craymer, Reuters, May 21, 2025