Economists ‘encouraged’ as private sector creates a million more jobs under the coalition

| September 13, 2012 | 0 Comments

By
James Chapman

18:51 EST, 12 September 2012


|

09:02 EST, 13 September 2012

The number of private sector workers has jumped by more than one million since the Coalition came to power,  official figures revealed yesterday.

The Office for National Statistics said private firms now employ a record 23.9million workers.

Economists said the figures were ‘encouraging’ and ‘remarkably good’.

The number of private sector workers has jumped by more than one million since the Coalition came to power, official figures revealed yesterday

The number of private sector workers has jumped by more than one million since the Coalition came to power, official figures revealed yesterday

And the new employment minister, Mark Hoban, said British businesses deserve ‘great credit for continuing to create jobs, even in these tough economic times’.

However, a huge number of these jobs are part-time, and the figures have also been enhanced by a statistical change which ‘reclassified’ nearly 200,000 college staff in England from public to private employees.

As private sector employment has expanded, the number of State workers – equal to one in five of the workforce – has fallen.

Since David Cameron entered Downing Street in May 2010, about 630,000 public sector jobs have been axed. However, this figure has also been affected by the reclassification.

Economists said the significant jump of 236,000 in total employment between May and July is staggering.

Dr John Philpott, of employment research firm The Jobs Economist, said: ‘It is a remarkable achievement at any time but in current economic conditions is near miraculous.’

Since David Cameron came to power about 630,000 public sector jobs have been axed

Since David Cameron came to power about 630,000 public sector jobs have been axed

But others fear the good news is only temporary. Samuel Tombs, of the consultancy Capital Economics, said: ‘We remain concerned that the labour market’s exceptional resilience will not last.’

One of the biggest warning signs is Britain’s part-time epidemic is getting worse.

There are a record number – 8.1million – of part-time workers.

Over the past year, the number of full-time workers has jumped by 112,000, but for part-time workers the figure has risen three times faster, increasing by 318,000.

Many, such as mothers with young children and older workers, choose this option, but the ONS said a record number are being forced into part-time work.

A total of 1.4million people said they are only doing part-time work because they could not find a full-time job. Ian Brinkley, director of The Work Foundation, said: ‘Any increase in employment is encouraging but a full labour market recovery must offer more full-time employee jobs.’

About 40 per cent of the rise in employment took place in London, raising concerns that the the jump may be a temporary boost from the Olympics.

Of the new jobs, 91,000 were in the capital, but employment fell, barely rose or froze in the North East, East Midlands, South East, Scotland and Northern Ireland.

The ONS said the number of pensioners working has jumped to an all-time high. Over the last year, around 100,000 people aged 65 and above have joined the army of older workers, raising the total to 955,000.

Yesterday Ben Broadbent, a member of the Bank of England monetary policy committee, said employment levels may only be so high because firms are ‘hoarding’ labour in order to be ready when the economy picks up.

Many are deciding to keep staff even if they have nothing to do, described as the ‘hidden unemployed’. This also has the advantage of avoiding the cost of firing them.

The comments below have not been moderated.

Unfortunately all the jobs are part time and benefits make up the rest! It’s costing the taxpayer and the country more – for heaven’s sake someone tell the truth..

jaycee
,

Sutton Coldfield,
13/9/2012 11:24

How many are on zero hour contacts……How many workers did G4S say they had? Even though a large number were from the Army?…These numbers do not add up as Osborne is spending more than last year.

Dave
,

London, United Kingdom,
13/9/2012 10:54

lose a full time job on £20k, get a part time job 20hours a week through an agency, get tax credits to top up your income, council tax and housing benefit.
however you are not classed as unemployed.

Mark
,

Bristol,
13/9/2012 10:36

If this is true then it has happened in spite of our political elite with there own personal agendas, then suddenly they remember an election is coming.

Ron
,

Leeds,
13/9/2012 10:34

Don’t knock it. Fiddling the unemployment figures is just about the only growth industry we have at the moment.

realist
,

kirkcudbright,
13/9/2012 10:19

Given up on supporting any party – but I do enjoy the fun! So many times I read of the left wing infiltrated civil service yet every time the Tories get in we have the fantasy figures published, John Major had so many ways of giving the economic state of the nation, they would choose the one that did not look so bad as the others! Here we are again with creative publications – damned lefties!

Bill
,

Winchester,
13/9/2012 10:13

How many of these Jobs..are being subsidized by the tax payer because they are lowly paid or part-time…it cannot be that hard to publish…also the actual count of the unemployed needs to be published…manipulation of statistics at it worse because those with a small pension or savings do no-longer qualify for a whole raft of means tested benefits…but they are still unemployed… no wonder the count for the young is rising…they have no savings?

discovery300
,

Plymouth,
13/9/2012 09:39

fusillier derby-yes ,we have created a million jobs yet we have had three quarters of negative growth and the benefits bill is rising steeply .Something doesnt quite add up there! That means that many of these new jobs are poorly paid and need tax credits housing benefit payments,and help with council tax to make them into a living wage in our high household cost economy.

John
,

Cambridgeshire,
13/9/2012 09:36

The only jobs that are being created in the UK Economy are the thousands of Employment Agency “Phantom” vacancies……Go along to your local jobcentre and find out for yourself

BL-10
,

Manchester,
13/9/2012 09:11

And how many of this million jobs are sideways moves from the public sector to the same job in the private sector for a lot less money ? And how many of these million jobs are part time pocket money wage jobs ?

Billy Middle England
,

Solihull, United Kingdom,
13/9/2012 09:07

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