Data published by the Office for National Statistics showed today that public sector employment has dropped by 20,000 to 5.722m (release). Employment in UK local government decreased by 32,000, and employment in the Civil Service in Great Britain decreased by 4,000.
This sees a continued shift of employment from the public sector to the private sector, as private sector employment rose by an estimated 151,000 to 24.010m. Allister Heath notes the importance of the composition of the economy:
Too many are uninterested in the composition of demand – private or public – assuming it is all the same. It isn’t: private spending is more efficient than public spending, and governments with high levels of state spending as a share of GDP grow less fast, according to many studies.