Major APS Departments Reduce Graduate Hiring Amid Government Savings Push
Nearly all of the Australian Public Service's ten largest employing departments have significantly cut their graduate intake for the coming year compared to 2025 recruitment levels, according to recent analysis. This reduction comes as the Albanese government implements a substantial belt-tightening initiative across federal agencies, targeting annual savings of up to $5.6 billion.
Departmental Graduate Numbers Show Consistent Decline
The Department of the Prime Minister and Cabinet has reduced its graduate intake to just 23 positions this year, down from 28 in the previous year. According to departmental statistics, approximately 57 percent of these new graduate hires are women, with the remaining 43 percent being men. All PM&C graduate positions remain based in the national capital of Canberra.
The highly competitive graduate program reportedly received over one thousand applications last year alone, indicating continued strong interest despite the reduced opportunities.
The Department of Foreign Affairs and Trade has confirmed hiring 64 graduates for the current year, representing what a spokesperson described as a "slight decrease" from their 2025 numbers. The department declined to provide specific comparative figures from the previous year.
Multiple Departments Follow Similar Recruitment Patterns
Treasury has substantially reduced its graduate intake, accepting just 32 new employees compared to 44 in the previous year. The Department of Social Services shows a similar pattern, confirming it has hired 40 graduates this year, down significantly from the 56 offers extended in 2025.
The Education Department has taken on only 25 graduates for the current year, compared to an intake of 34 in the previous year. This department's graduate cohort consists of 17 men and eight women, with the majority based in the Australian Capital Territory.
Australian Taxation Office Bucks the Trend
In contrast to the broader public service trend, the Australian Taxation Office has dramatically increased its graduate recruitment. The ATO has nearly doubled its intake from 250 graduates last year to 420 positions this year.
This expansion continues a pattern of growth at the Tax Office, which reached a record high of 530 graduate hires in 2023. A spokesperson noted that graduate employees now comprise approximately 2 percent of the ATO's total workforce.
Expert Analysis on Recruitment Strategy
Former finance deputy secretary Stephen Bartos commented that departmental moderation of graduate intake was unsurprising given the current financial constraints across the Australian Public Service.
"Departments reducing recruitment is what you would expect, but if it's relatively smaller that's also an indicator that it might be associated with what's reported to be a smaller reduction in departmental expenses," Bartos observed.
He emphasized that while agencies must manage costs, complete hiring freezes create problematic staffing gaps. "They can never afford to stop recruitment completely because you need a continual flow through of more experienced people who have been around longer," Bartos explained.
Federal Versus State Public Service Comparisons
The reductions in Commonwealth public service graduate recruitment appear relatively minor when compared to state-level cuts. In New South Wales alone, more than 1,500 positions were eliminated across the state's public sector last year.
However, staffing costs within the federal public service have increased substantially under the current government. Employee-related expenses at the sixteen largest departments and two major agencies exceeded $18 billion in the previous financial year.
Ahead of recent economic announcements, Treasurer Jim Chalmers maintained that government spending was not a primary driver of persistent inflation pressures, despite the ongoing focus on budgetary restraint across public service agencies.
