The public sector is the only part of the UK economy to have added to payrolls over the past year, it was revealed today.
Official figures showed the number of workers on companies’ books held steady in January, but was down 96,000 over the year. Unemployment remained at 5.2 per cent over the three month period.
But the ONS said employment in the public sector was estimated at 6.19million in December, up 43,000 over 12 months.
Pay was also rising faster in the public sector, at 5.9 per cent compared to 3.3 per cent in the private sector.
Official figures showed the number of workers on payrolls held steady in January, but was down 96,000 over the year.
Unemployment remained at 5.2 per cent over the three month period, having risen in recent quarters
ONS Director of Economic Statistics Liz McKeown said: ‘Labour market conditions were little changed at the start of the year.
‘The number of workers on payroll rose slightly in the latest month but, overall, the recent picture has been broadly flat.
‘Unemployment remains at the rate reported last month, up on the quarter and the year, while the number of vacancies remains largely stable, with declines among smaller firms being offset by rises among larger ones.
‘Regular wage growth is at its lowest rate in more than five years, with pay growth in both the private and public sectors continuing to ease.’
The estimated number of workforce jobs was down by 266,000 over the year to December, with the employee jobs component falling 25,000 and self-employment jobs 242,000.
Work and Pensions Secretary Pat McFadden pointed to the separate Labour Force Survey figures for employment, which show an increase of 338,000 over the year to January. That is a change in the rate from 75 per cent to 75.1 per cent, although the ONS has admitted problems with the survey have made it less reliable.
Mr McFadden said: ‘Today’s figures show there are 388,000 more people in work than there was this time last year. While this is encouraging, we know there is more to do to get people, particularly young people, into work.
‘That’s why we’re investing £2.5billion to create up to 500,000 opportunities for young people to earn or learn, transform the welfare state into a working state – including a new £3,000 Youth Jobs Grant for businesses who take on eligible young people and expanding the Jobs Guarantee to cover 18- to 24-year-olds.
‘We’re also delivering the biggest reforms to apprenticeships in a decade – giving employers more flexibility and expanding foundation apprenticeships into the hospitality and retail sectors.’
Public sector pay has been rising faster than the private sector after a series of bumper settlements
The ONS said employment in central government was estimated at a record high of 4.06million in December.
That was up 13,000 compared to September, and up 61,000 annually.
Around 28,000 of that was due to schools becoming academies, which transfers numbers from local authorities to central government.
Employment in the NHS hit a record high of 2.07million in December, an annual rise of 17,000.
The Civil Service employed 555,000 people in December, 7,000 more than a year earlier.
