Sounds like what we have currently in the US. I have a family member who is a manager for a state unemployment department ... She oversees like a dozen reps that help handle unemployment claims. She makes $70/hr with a fully paid for pension + benefits and like 4-5 weeks PTO. Recently had a friend get laid off and filing for unemployment. Their queues have like 5-6 hour waits and you can schedule a follow up ... like a week in advance.
Sounds about right. I'm not sure what will ever change these agencies. Obviously paying them more won't, because they are very well compensated. Migrating systems/software? No, the government will pick Infosys or Cognizant, or some other nightmare consulting firm that'll charge $100 million per state. Imo, they need to be gutted from the top down.