The public sector has expanded steadily over recent years, with headcount currently at a record high. Given that public sector workers are paid more than their private sector counterparts and receive more generous pension benefits,[1],[2] this imposes a significant burden on the public finances. Yet the growth of the public sector has not been accompanied by improved service delivery. Public service productivity in 2024 is lower than before the pandemic despite staff levels rising.[3]
This briefing note examines the growth of the public sector using data from the Office of National Statistics (ONS) between 1999 and the second quarter of 2024.[4]
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Key findings
- Total public sector employment grew to 5,841,000 in the second quarter of 2024,[5] reaching the highest level since figures started being published in 1999.
- From 2023 to 2024, the number of public sector employees increased by 116,000, a rate of 318 new public sector positions per day.
- The public sector accounted for 17.6 per cent of total employment in Q2 2024, the highest level since 2012, when it accounted for 17.9 per cent of total employment.
NHS
- The NHS saw the largest increase from 2023 to 2024 with 65,000 additional staff.
- Total NHS headcount reached 2.03 million in Q2 2024, the highest level on record and 72 per cent more than in 1999.
- The number of employees in the NHS has increased 30.2 per cent from 2010 to 2024, with an average yearly increase of 1.92 per cent.
Others
- The civil service had the second largest increase from 2023 to 2024, growing by 24,000.
- At the same time HM forces shrank by 2,000 in 2024 to 148,000, this is its smallest level since at least 1900.[6]
- The NHS was 13.7 times larger than HM forces in Q2 2024, the largest ratio on record.
- The civil service was 3.7 times larger than HM forces in Q2 2024, this ratio has consistently risen since 2012 when the civil service was 2.4 times larger and is now at a record high.
Productivity
- From Q1 2019 to Q1 2024, public sector headcount increased by 531,000, or ten per cent. Public service productivity fell by 7.7 per cent during that same period.[7]
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[1] Brione, P. & Francis-Devine, B., Public sector pay, House of Commons Library, 15 January 2024, p.17.
[2] Friend, D., Pensions inequality, TaxPayers’ Alliance, 6 August 2024, www.taxpayersalliance.com/pensions_inequality_2024, (accessed 3 October 2024).
[3] Office for National Statistics, Public service productivity, quarterly, UK, 15 July 2024, www.ons.gov.uk/economy/economicoutputandproductivity/publicservicesproductivity/datasets/publicserviceproductivityquarterlyuk, (accessed 29 September 2024).
[4] Office for National Statistics, Public sector employment, 10 September 2024, www.ons.gov.uk/employmentandlabourmarket/peopleinwork/publicsectorpersonnel/datasets/publicsectoremploymentreferencetable, (accessed 29 September 2024).
[5] Excluding the effects of major reclassifications
[6] Ministry of Defence, An annual time series for the size of the armed forces (Army, Navy and RAF) since 1700, 28 April 2017, assets.publishing.service.gov.uk/media/5a81d66740f0b623026996e1/2017-04440.pdf, (accessed 24 September 2024)
[7] Office for National Statistics, Public service productivity, quarterly, UK, 15 July 2024, www.ons.gov.uk/economy/economicoutputandproductivity/publicservicesproductivity/datasets/publicserviceproductivityquarterlyuk, (accessed 29 September 2024).