IBEC has urged the Government to cut public service jobs by 15,000 over the next three years through non-replacement, voluntary retirement and redeployment.
It says this could achieve savings of over €850m in current spending.
IBEC says 26,000 new jobs were created by September 2003, with 20,000 in the public sector. 'Anyone with an ounce of sense should see that this is unsustainable,' it says.
The employers' group says public service numbers have been allowed to increase by about 30,000 between 2000 and 2002 and continued to increase into 2003 even after the imposition of a cap.