The Government's handling of NHS workforce planning is a "disastrous failure", MPs said.
The House of Commons Health Select Committee said there had been a boom and bust approach, with NHS trusts recruiting far more staff than they could afford to pay.
Too much focus on targets had led to poor long-term management, it said.
The MPs' report said figures showed that, between 1999 and 2004, nursing numbers increased by more than 67,000 - 340% in excess of original targets. During the same time, the number of GPs rose by 4,098 - 105% over target, it said.
"It was too easy to throw new staff into the task of meeting targets rather than consider the most cost-effective way of doing the job," the report said. "The expansion of the workforce was reckless and uncontrolled and increases in funding were often seen as a blank cheque for recruiting new staff."
Such increases in staff numbers were followed by redundancies, training cuts and staff not being able to get jobs despite only just graduating, MPs said.
There was clear evidence that the NHS had gone from "boom to bust", with staff being hit by "widespread job reductions, sweeping training cuts and severe pay restrictions."
The Committee also criticised large pay increases, such as through the new contract for consultants, and called on the Government to use the contracts to increase productivity. "Large pay increases were granted without adequate steps being taken to ensure increases in productivity in return," it said.
The Committee urged the Government to "make workforce planning a priority for the health service with greater emphasis given to long term and strategic planning".
It also wants an end to the "constant reorganisation of workforce planning" and efforts made to "dramatically improve the integration of workforce, financial and service planning".
