The Government says there will be more job losses in the public service, on top of 2100 jobs cut over the past two years.
Figures released on Thursday show the number of fulltime jobs has fallen by 2100 to 36,771.
The National-led Government capped the core public service at 38,859 in December 2008.
State Services Minister Tony Ryall says the cap allows the Government to move resources to frontline services.
Mr Ryall warned on Thursday at least another 500 jobs will go in the next year as chief executives operate within budgets and without baseline funding increases.
While employee numbers have fallen in many government departments, he says the number of police, probation and corrections officers have all risen.
However, the Public Service Association says total job losses in the state sector are more than 6000.
PSA national secretary Brenda Pilott says another 1000 people in the wider state sector have lost jobs, 600 Auckland council workers have lost jobs this week in the super city merger, and the Government plans to cut 2500 public service vacancies.
