Public sector employment figures plummets

Official figures reveal overall levels of public sector employment plummeted by 235,000 in the last three months - following the reclassification to the private sector of further education colleges and sixth form college corporations.

The effect of this reconfiguration on local government employment totals was a reduction of 56,000 posts to just under 2.6 million workers - while central government staffing figures fell by 175,000. This caused total UK public sector employment to contract for the eleventh successive quarter - to a total of more than 5.6 million workers.

Excluding this change, however, while the public sector shed 39,000 jobs between March and June, while firms in the private sector took on a further 275,000 employees.

Civil service numbers fell by a further 5,000 posts to an estimated 459,000 – the lowest since World War Two while the number of people working at public corporations dropped for the eight successive quarter, by 4,000 to 485,000.

The number of young people aged 16 –24 out of work increased by 7,000 to 1.02 million in the last three months. However, the inactivity rate for this age group fell by 0.5%, down 75,000 to 2.56 million over this period.

Employment minister Mark Hoban today said: ‘British businesses deserve great credit for continuing to create jobs even in these tough economic times, and now we have one million more people working in the private sector than in May 2010.

Mr Hoban said ‘real signs’ had emerged the Coalition’s welfare reforms were working, with 140,000 fewer people on the main out of work benefits, ‘Today’s fall in unemployment is further welcome news but we know there are still challenges ahead,’ Mr Hoban said.