Christopher Luxon is heading to his first Cabinet meeting today with a pledge to reduce the public service headcount and redirect resources to the new government's agenda. 

The Prime Minister says he wants to find savings of 6.5% from the public sector. 

JMI Wealth Director Andrew Kelleher told Mike Hosking that that's likely to push up unemployment and ease pressure on the tight labour market. 

He says unemployment was already lifting before the election, but the change of government could contribute to that trend. 

LISTEN ABOVE