The state government is dramatically lifting its spending on temporary workers and contractors in the public sector to nearly $1 billion - at the same time as it lays off more than 4000 staff.

The leap in spending on temporary workers is detailed in government contracts that reveal a big rise in the use of temporary administrative staff, information technology workers and consultants.

Illustration: Ron Tandberg.

The $930 million expected to be spent from 2011 to 2014 compares with the government's outsourcing contract for 2006-2008, which was worth about $200 million.

Among the firms to benefit from the current outsourcing contract are labour hire giants Hays, Hudson and Randstad.