Slovenia Prime Minister proposes public sector restructuring

Slovenian Prime Minister Janez Janša has raised concerns regarding the rapid growth of the public sector and its impact on the national economy. Data presented indicates that the number of public sector employees has risen from approximately 125,000 at the time of independence to 196,000 today, representing a nearly 56 percent increase.

Janša argues that this growth has led to a misallocation of human capital, contributing to a shortage of approximately 150,000 workers in the private sector. He noted that this imbalance results in both labor shortages in the economy and a “bureaucratic swamp” caused by an excessive number of national regulations. The Prime Minister highlighted that while sectors such as healthcare, defense, and social welfare required growth, other areas like general administration and education have seen disproportionate increases.

To address this, the government is proposing a “soft restructuring” of the public administration. Rather than mass layoffs, the goal is to encourage a shift of personnel toward the private sector where labor needs are higher and wages may be better. The plan also includes the rationalization and decentralization of state administration to reduce the concentration of civil servants in Ljubljana.