The state is bigger than ever. The number of workers employed in central government has hit 4 million for the first time. Figures just released by the Office for National Statistics (ONS) show employment in the public sector hit 6.14 million in December, up 53,000 in a year. Employment in central government hit a record high and was up 105,000 in a year. Those employed by the NHS hit a record high too, of over 2 million, and was up by nearly 50,000 in a year. Yet, as Katy Balls and I point out in today’s cover story for the magazine, productivity has not kept pace.
Meanwhile, the unemployment rate in the whole economy was steady at 4.4 per cent in January, in a relief for Rachel Reeves, as survey data had suggested her £25 billion raid on National Insurance was having a deterrent effect when it comes to hiring. However, the tax hike doesn’t kick in until next month, so the negative effects could still feed through.
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