In a slew of labour market statistics this morning the ONS reports that employment in the public sector has increased by 33,000 to 6.21 million, up 0.5% on last year. Almost one in five employed persons in the UK is on the government payroll….
The ONS also said:
“Employment in central government was at a record high, at an estimated 4.08 million in June 2026, an increase of 7,000 (0.2%) compared with March 2026 and an increase of 34,000 (0.8%) compared with June 2025; the main contributors to the increase since the previous year were some local authority schools becoming academies and an increase in employment in the Civil Service.“
The Civil Service has swelled by 1.1% – 6,000 – since June 2025. That’s despite repeated Labour promises to trim staff numbers…
Concurrently, annual average regular earnings growth was 6.3% for the public sector but 2.9% for the private sector. The public sector wage spiral continues in earnest – no one look at its productivity statistics, though…
3.9% average wage growth means the state pension will rise by that percentage too. Where’s the money?
Youth unemployment is at its highest level since November 2014, vacancies have hit their lowest level since April 2021, and payrolled employment fell again by 0.5% in August. Good luck kids…
Andy Haldane, Burnham’s recent adviser on the economy who has not taken up a No10 job, told Andrew Marr on LBC:
“The market now suspects that this is a traditional tax-and-spend socialist government with better TikTok videos…
imposing windfall taxes on oil & gas or on banks or upping capital gains tax would […] repeat the mistake that Rachel made […] The Achilles heel, the fiscal Achilles heel of this government thus far has been its unwillingness and/or inability to cut public spending.”