The number of workers employed in the private sector is at a record 15-year high, according to a Government report.
Since 2010, private sector employment has risen by 1.3 million to 24.1 million and public sector employment has fallen by 423,000.In 2012, the increase in private sector employment was almost five times greater than the drop in public sector work.
In 2011 chancellor George Osborne said the private sector would compensate the jobs lost in public services due to austerity measures.
Government analysis of Office of National Statistics data showed 80.9% of jobs in March 2013 were in the private sector compared to 19.1% in the public sector.
Three years ago, the private sector accounted for 78.7% of jobs compared to 21.3% in the public sector.Minister for employment Mark Hoban said “cynics” that claimed the private sector wouldn’t be able to create jobs have been proven wrong. “The number of people in work has hit record levels, unemployment is falling and the number of people claiming Jobseeker’s Allowance dropped by 29,000 last month,” Hoban said.
The analysis showed the private sector now accounts for a bigger share of work since data was recorded this way in 1999.Shadow employment minister Stephen Timms said the real problem lies in growing levels of underemployment.
“The real story of the labour market is falling wages, almost a million young people out of work and millions working harder for less.”
Last week ONS job figures showed employment rose by 69,000 in Q2 compared to Q1.