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Statistical bulletin: Public Sector Employment, Q2 2013 This product is designated as National Statistics

Released: 11 September 2013 Download PDF

In Q2 2013

  • total UK public sector employment continued to decrease, by 34,000 to 5.665 million.
  • employment in UK local government, at 2.448 million, is 48,000 lower than at Q1 2013.
  • employment in UK central government, at 2.748 million, is 14,000 higher than at Q1 2013.
  • employment in UK public corporations, at 469,000, was the same as at Q1 2013.
  • private sector employment increased by 114,000, to 24.171 million.
  • total UK public sector employment is 104,000 lower than at Q2 2012.
  • total UK private sector employment is 380,000 higher than at Q2 2012.

In this bulletin

This bulletin contains detailed public sector employment estimates, including new estimates for Q2 2013. For most sources that contribute to these statistics, the employment is reported for a specific day in June 2013. The public sector comprises central government, local government and public corporations as defined for the UK National Accounts.

Estimates of public sector employment are provided on a headcount and full-time equivalent (FTE) basis for sectors and industries, and also by region on a headcount basis only. In addition, Civil Service employment is provided by government department and agency. Employment in Executive Non-Departmental Public Bodies (NDPBs) has been aggregated by sponsoring department.

Since 2009, some financial institutions have been classified to the public sector. English further education colleges and sixth form college corporations have been classified to the private sector with effect from 1 April 2012. Estimates of public sector employment both including and excluding financial institutions, English further education colleges and sixth form college corporations have also been provided.

Estimates of private sector employment are provided. These are derived as the difference between Labour Force Survey estimates of employment in the whole economy and the public sector estimates collected from public sector organisations.

As part of this release, revisions have been made to the series in line with the revisions policy for Public Sector Employment Statistics (see background note 3).

The main uses of these statistics are in monitoring changes in the number of people employed in the public and private sector in the UK. They are the official measure of UK public sector employment.

Main stories

Total employment in the public sector continued its downward trend during Q2 2013, while employment in the private sector continued to rise. There were 5.7 million people employed in the public sector at Q2 2013, just under 11% lower than the peak level seen in Q3 2009. Part of this fall is due to further education and sixth form colleges in England being reclassified from the public sector to the private sector in April 2012. When the impact of the reclassification is removed total public sector employment has fallen by just over 8% compared with Q3 2009.

The number of people employed in the private sector in June 2013 is estimated to be 24.2 million. Around four in five people who are working are employed in the private sector.

There was a fall in employment in local government. Employment in public corporations remained the same, and increased in central government. Part of the decrease in local government employment, and increase in central government employment, can be attributed to the establishment of the Police Service of Scotland and the Scottish Fire and Rescue Service as central government bodies. These functions had previously been carried out by regional bodies. In addition, schools in England continued to become academies. When a school becomes an academy its classification transfers from local government to central government. Employment in the Civil Service in Great Britain increased by a small amount, due to the establishment of some new bodies.

Employment in public sector education increased slightly between Q1 2013 and Q2 2013 to 1.48 million, while employment in the National Health Service fell slightly to 1.55 million.

Public Sector Employment by Sector Classification

Total UK Public Sector Employment

Figure 1: Total UK Public Sector Employment, Q1 1999 to Q2 2013

Figure 1: Total UK Public Sector Employment, Q1 1999 to Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

Notes:

  1. Royal Bank of Scotland Group plc and Lloyds Banking Group plc are classified to the public sector from 13 October 2008. They are therefore included in the public sector estimates from 2008 Q4 onwards but not earlier periods. Further details on financial institutions classified to the public sector can be found in background note 8.
  2. English further education colleges and English sixth form college corporations classified to public sector from 1993 to 31 March 2012. They are therefore included in public sector estimates from 1993 to Q1 2012, but not in subsequent quarters. See background note 9.

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At Q2 2013, total UK public sector employment (PSE) was 5.665 million on a headcount basis, and 4.657 million on a full-time equivalents (FTE) basis. This was a decrease of 34,000 (0.6%) headcount, and of 22,000 (0.5%) FTE, compared with Q1 2013.

In the year to Q2 2013, total UK PSE fell by 104,000 (1.8%) on a headcount basis and by 75,000 (1.6%) on a FTE basis. Figure 1 shows how total UK PSE fell during each quarter for almost 4 years leading up to Q2 2013.

In Q2 2012, English further education colleges and sixth form college corporations were reclassified from the public sector to the private sector (see background note 9 for further details). This resulted in the movement, from the public sector to the private sector, of an estimated employment (on a headcount basis) of 196,000. A series of employment in publicly owned English further education colleges and sixth form college corporations can be found in Table 5a of the  Public Sector Employment reference tables (690.5 Kb Excel sheet) . A series of public sector employment which excludes the impact of this reclassification can also be found in Table 5a.

Total UK PSE reached its highest level of 6.365 million in Q3 2009. When the effects of the reclassification of the English further education colleges and sixth form college corporations have been removed, the total UK PSE headcount fell by 495,000 between Q3 2009 and Q2 2013.

Figure 2: UK Public Sector Employment in Civil Service and Public Corporations, Q1 1999 to Q2 2013

Figure 2: UK Public Sector Employment in Civil Service and Public Corporations, Q1 1999 to Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

Notes:

  1. Royal Bank of Scotland Group plc and Lloyds Banking Group plc are classified to the public sector from 13 October 2008. They are therefore included in the public sector estimates from 2008 Q4 onwards but not earlier periods. Further details on financial institutions classified to the public sector can be found in background note 8.

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UK Public Corporations

At Q2 2013, employment in UK public corporations remained at the same level on a headcount basis when compared with Q1 2013, and fell by 1,000 (0.2%) on a FTE basis.

In the year to Q2 2013, the headcount in UK public corporations fell by 14,000 (2.9%) and the FTE by 13,000 (2.9%).

The Q2 2013 levels of headcount (469,000) and FTE (433,000) are at their lowest since Lloyds Banking Group (LBG) and Royal Bank of Scotland (RBS) became part of the public sector in Q4 2008. Figure 2 shows the downward trend in employment in UK public corporations since LBG and RBS became part of the public sector, and in the year leading up to this.

Civil Service

At Q2 2013, Civil Service employment was 450,000 on a headcount basis and 415,000 on a FTE basis. This is up by 1,000 on both a headcount and FTE basis compared with Q1 2013, when the level of employment in the Civil Service was at its lowest in the series, which dates back to Q1 1999. This small increase is due to the establishment of two new bodies, Public Health England and the Legal Aid Agency.

In the year to Q2 2013, employment in the Civil Service had fallen by 8,000 (1.7%) on a headcount basis, and also by 8,000 (1.9%) on a FTE basis. Figure 2 shows the downward trend in Civil Service employment since Q2 2005, when it was at its highest level of 571,000.

Factors Affecting Employment in Local and Central Government

There is currently an ongoing shift of employment from local government to central government, as a result of local authority maintained schools converting to academy status. Academies are classified to central government, whereas local authority maintained schools are classified to local government. As a result, whenever a local authority maintained school becomes an academy, its employees move from local government to central government. 

Between Q1 2013 and Q2 2013, a headcount of approximately 10,000, and a FTE of approximately 7,000, transferred from local government to central government due to academy conversions. In the year to Q2 2013 this had caused a headcount of approximately 57,000, and FTE of approximately 42,000, to shift from local to central government.

In Q2 2013, the Police Service of Scotland and the Scottish Fire and Rescue Service were established. These are central government bodies that replaced the regional bodies that preceded them. The result was a headcount transfer from local government to central government of approximately 29,000.   

In Q2 2012, the reclassification of English further education colleges resulted in the transfer of employees from the central government to the private sector, with an approximate headcount of 176,000. At the same time the reclassification of English sixth form college corporations resulted in the transfer from local government to the private sector of employees with an approximate headcount of 20,000.

Figure 3: UK Public Sector Employment in Local and Central Government, Q1 1999 to Q2 2013

Figure 3: UK Public Sector Employment in Local and Central Government, Q1 1999 to Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

Notes:

  1. The Academies Act 2010 was passed in July 2010. This has resulted in local authority maintained schools taking on academy status. Local authority maintained schools are classified to local government, and academies to central government. As a result, when a local authority maintained school takes on academy status, its employment moves from local to central government.
  2. English further education colleges classified to central government from 1993 to 31 March 2012. They are therefore included in central government estimates from 1993 to Q1 2012, but not in subsequent quarters. See background note 9.
  3. English sixth form college corporations classified to local government from 1993 to 31 March 2012. They are therefore included in local government estimates from 1993 to Q1 2012, but not in subsequent quarters. See background note 9.

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Local Government

At Q2 2013, employment in local government had fallen when compared with Q1 2013, by 48,000 (1.9%) on a headcount basis, and by 30,000 (1.6%) on a FTE basis. This was mainly due to decreases in employment in English local authorities (primarily caused by academy conversions) and the abolition of the regional Scottish police and fire services.

In the year to Q2 2013 local government employment fell on a headcount basis by 145,000 (5.6%) and on a FTE basis by 103,000 (5.3%). This can partially be accounted for by academy conversions during the year, and the recent abolition of the regional Scottish police and fire service bodies.

The decreasing trend in local government employment since Q2 2010 can be seen in Figure 3.

Central Government

At Q2 2013, employment in central government had risen when compared with Q1 2013, by 14,000 (0.5%) on a headcount basis, and by 9,000 (0.4%) on a FTE basis. This can mainly be accounted for by the establishment of the Police Service of Scotland and the Scottish Fire and Rescue Service. 

The Q2 2013 central government headcount estimate was 55,000 (2.0%) higher, and the FTE estimate 41,000 (1.8%) higher, than the respective estimates at Q2 2012. This can again be mainly explained by academy conversions during the period, and the recent establishment of the central Scottish police and fire service bodies.

Figure 3 shows how employment in central government has steadily risen following the passing of the Academies Act 2010, once the temporary effects of the reclassification of English further education colleges and sixth form college corporations in Q2 2012 have been removed.

Public Sector Employment by Industry

For over a year, the NHS has been the industry employing the largest number of public sector workers. At Q2 2013 the NHS accounted for around 27.3% of all public sector employment. Prior to Q2 2012 public sector education employed the largest number of public sector workers. Following the reclassification of English further education colleges and sixth form college corporations from the public to the private sector in Q2 2012 the public sector education headcount reduced by approximately 196,000, and full-time equivalent (FTE) by approximately 131,000. Figure 4, below, shows the impact of this reclassification on the public sector education series, and how, at that time, it brought the level of public sector education employment below the NHS level.

Figure 4: UK Public Sector Employment by Industry

Figure 4: UK Public Sector Employment by Industry
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

Notes:

  1. Royal Bank of Scotland Group plc and Lloyds Banking Group plc are classified to the public sector from 13 October 2008. They are therefore included in the public sector estimates from 2008 Q4 onwards but not earlier periods. Further details on financial institutions classified to the public sector can be found in background note 8.
  2. English further education colleges and English sixth form college corporations classified to public sector from 1993 to 31 March 2012. They are therefore included in public sector estimates from 1993 to Q1 2012, but not in subsequent quarters. See background note 9.

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NHS

Employment in the NHS decreased between Q1 2013 and Q2 2013, by 21,000 (1.3%) on a headcount basis and by 19,000 (1.4%) on a FTE basis. This decrease was the largest in any industry over the period. However proportionally, larger decreases were seen in construction, HM Forces and 'other health and social work'. The decrease can partially be accounted for by the abolition of the Health Protection Agency. This resulted in the transfer of some staff to Public Health England, a newly establised executive agency of the Department of Health.

In the year to Q2 2013, NHS employment fell by 11,000 (0.7%) on a headcount basis, and by 6,000 (0.5%) on a FTE basis.

Education

Employment in public sector education increased between Q1 2013 and Q2 2013, by 14,000 (1.0%) on a headcount basis, and by 11,000 (1.0%) on a FTE basis. This was the only industry to show an increase in employment in the public sector over this period.

On a headcount basis the Q2 2013 estimate of employment in public sector education was lower than the Q2 2012 estimate, by 6,000 (0.4%). However over the same period the FTE estimate was 1,000 (0.1%) higher.

Figure 4 shows the significant fall in public sector education in Q2 2012, as a result of the reclassification of English further education colleges and sixth form college corporations.

Public Administration

Public administration includes all administrative duties of local and central government.

Employment in public administration decreased between Q1 2013 and Q2 2013, by 6,000 (0.6%) on a headcount basis, and by 3,000 (0.3%) on a FTE basis.

In the year to Q2 2013 employment in public administration decreased by 14,000 (1.3%) on a headcount basis, and by 11,000 (1.2%) on a FTE basis. Figure 4 shows the general downward trend in employment in public administration since Q3 2009. The headcount fell by 150,000 between Q3 2009 and Q2 2013.

Other Public Sector

The category 'other public sector' covers all industries that have not been specified elsewhere.

Between Q1 2013 and Q2 2013, employment in the category 'other public sector' decreased by 8,000 (1.0%) on a headcount basis, and by 5,000 (0.7%) on a FTE basis.

In the year to Q2 2013, employment in the category 'other public sector' fell by 35,000 (4.2%) on a headcount basis, and by 26,000 (3.6%) on a FTE basis. This was the largest decrease seen in any industry over the period.

Figure 5: UK Public Sector Employment by Industry

Figure 5: UK Public Sector Employment by Industry
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

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Other Health and Social Work

This category covers all health and social work not covered by the NHS.

At Q2 2013 employment in 'other health and social work' had fallen when compared with Q1 2013, by 5,000 (1.7%) on a headcount basis, and by 4,000 (1.8%) on a FTE basis.

In the year to Q2 2013, employment in 'other health and social work' fell by 20,000 (6.4%) on a headcount basis, and by 14,000 (6.0%) on a FTE basis.

Police

At Q2 2013 employment in the Police had fallen when compared with Q1 2013, by 2,000 (0.8%) on a headcount basis, and by 1,000 (0.4%) on a FTE basis. Employment in the Police fell in each quarter during the three and a half years up to Q2 2013. This is shown in Figure 5 above.

HM Forces

Between Q1 2013 and Q2 2013, employment in HM Forces fell by 3,000 (1.7%) on both a headcount and FTE basis. In the year to Q2 2013 it fell by 11,000 (5.9%) on both a headcount and FTE basis. Figure 5 shows the steady fall in employment in HM Forces since Q1 2010.

Construction

At Q2 2013, employment in public sector construction had fallen when compared with Q1 2013, by 1,000 (2.4%) on a headcount basis. It fell by 2,000 (4.7%) in the year to Q2 2013.

Figure 5 shows the downward trend in employment in public sector construction from the beginning of the series in Q1 1999, to Q4 2011. Since then the level has remained reasonably stable.

 

Public and Private Sector Employment

Private sector employment estimates are derived as the difference between total UK employment estimates sourced from the Labour Force Survey and the public sector employment estimates collected from public sector organisations.

In Q2 2012, English further education colleges and sixth form college corporations were reclassified from the public sector to the private sector. This resulted in approximately 196,000 employees being reclassified to the private sector. In the Public Sector Employment, Q2 2013 reference tables (690.5 Kb Excel sheet) , Table 5a provides estimates of total UK public and private sector employment, with the effects of this reclassification removed. Tables 6a and 7a show, respectively, the regional public and private sector estimates with the effects of this reclassification removed.

Total UK Public and Private Sector Employment

Figure 6: UK Public and Private Sector Employment

Figure 6: UK Public and Private Sector Employment
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

Notes:

  1. Royal Bank of Scotland Group plc and Lloyds Banking Group plc are classified to the public sector from 13 October 2008. They are therefore included in the public sector estimates from 2008 Q4 onwards but not earlier periods. Further details on financial institutions classified to the public sector can be found in background note 8.
  2. English further education colleges and English sixth form college corporations classified to public sector from 1993 to 31 March 2012. They are therefore included in public sector estimates from 1993 to Q1 2012, and in private sector estimates in subsequent quarters. See background note 9.

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In Q2 2013, total UK private sector employment had increased by 114,000 (0.5%) compared with Q1 2013. Total UK public sector employment had fell by 34,000 (0.6%) over the same period.

Figure 6 shows the upward trend in total UK private sector employment since Q4 2009, with total UK private sector employment having shown an increase in every quarter in the two years leading up to Q2 2013. With the effects of the reclassification of the English further education colleges and sixth form college corporations removed, total UK private sector employment increased by almost 1.5 million between the end of 2009 and Q2 2013.

The opposite trend can be seen in total UK public sector employment, which showed a constant decline in the three and a half years to Q2 2013. During this time total UK public sector employment fell by just over half a million (when the effects of the reclassification of English further education colleges and sixth form college corporations are removed).

At UK level, the increase in private sector employment has been larger than the associated decrease in public sector employment in each quarter for nearly two years up to Q2 2013.

Public and Private Sector Employment by Region

Seasonally adjusted series are not available when public and private sector employment is split by region. Therefore any differences between quarters in the published regional tables may be due to seasonal effects. Each series begins at Q1 2008.

Public Sector Employment by Region

Figure 7: Change in Public Sector Employment, by Region, Q2 2012 - Q2 2013

Figure 7: Change in Public Sector Employment, by Region, Q2 2012 - Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

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Nearly all of the Q2 2013 regional public sector employment estimates are lower than the corresponding Q2 2012 estimates.

West Midlands (19,000; 4.0%), South West (16,000; 3.3%) and Yorkshire and The Humber (14,000; 2.8%) showed the largest falls in public sector employment in the year to Q2 2013.

In the year to Q2 2013, public sector employment only increased in Northern Ireland, although when rounded to the nearest thousand this equates to 0,000 (0.1%). 

Private Sector Employment by Region

Figure 8: Change in Private Sector Employment, Q2 2012 - Q2 2013

Figure 8: Change in Private Sector Employment, Q2 2012 - Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

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In the year to Q2 2013, private sector employment increased in eight out of the 12 regions. The largest increase in private sector employment in the year to Q2 2013 was  seen in London (155,000; 4.3%). The next largest increases in private sector employment over this period were seen in Yorkshire and The Humber (82,000; 4.3%) and Scotland (62,000; 3.3%).

Decreases in private sector employment in the year to Q2 2013 were seen in East Midlands (39,000; 2.3%), South West (17,000; 0.8%), North West (11,000; 0.4%) and North East (3,000; 0.4%).

Proportion of Total Employment Employed by the Public Sector

Figure 9: Proportion of Total Employment Employed in the Public Sector, by Region, Q2 2013

Figure 9: Proportion of Total Employment Employed in the Public Sector, by Region, Q2 2013
Source: Quarterly Public Sector Employment Survey - Office for National Statistics

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Figure 9 shows the proportion of all those in employment employed in the public sector for each UK region at Q2 2013. Northern Ireland (27.6%), Wales (25.2%) and Scotland (23.0%) had the highest proportions of all in employment employed in the public sector.

At Q2 2013 North East (22.4%) was the English region with the highest proportion of all in employment employed in the public sector. North West (20.2%) replaces Yorkshire and The Humber as the region with the second highest proportion. South East (16.2%) and East of England (16.3%) overtook London (16.5%) as the regions with the lowest proportions of all in employment employed in the public sector.

Employment in the Civil Service and in Executive Non-Departmental Public Bodies (NDPBs)

Civil Service

At Q2 2013, employment in the Civil Service in Great Britain had increased when compared with Q1 2013, by 1,820 on a headcount basis, and by 1,670 on a full-time equivalents (FTE) basis. This was due to the establishment of Public Health England and the Legal Aid Agency (LAA), which increased Civil Service employment by 6,680 on a headcount basis, and by 6,280 on a FTE basis.

Public Health England is an executive agency of the Department of Health, and has taken over many of the functions of the Health Protection Agency. At Q2 2013 it had a headcount of 5,120, and FTE of 4,800.

The Legal Aid Agency (LAA) is an executive agency of the Ministry of Justice. It replaces the Legal Services Commission, which was classified as an Executive NDPB. At Q2 2013 the LAA had a headcount of 1,560, and FTE of 1,480.

Across the rest of the Civil Sevice in Great Britain, employment decreased by 4,860 on a headcount basis, and by 4,620 on a FTE basis during Q2 2013.

During Q2 2013, decreases were seen across roughly half of central government departments. A decrease of 1,940 headcount (1,930 FTE) across the Department for Work and Pensions was the largest.

Despite the establishment of the LAA, overall employment across the Ministry of Justice changed relatively little, due to a decrease in the National Offenders' Management Service of 1,340 on a headcount basis, and of 1,120 on a FTE basis, and a decrease in Her Majesty's Courts and Tribunals Service of 180 on a headcount basis, and of 160 on a FTE basis.

Executive NDPBs

Note that employees of Executive NDPBs sponsored by the Foreign and Commonwealth Office have not been included in any estimates, as this would give the estimates the potential to be disclosive. Employment in Executive NDPBs has been aggregated by sponsoring department. Employees of the now abolished Health Protection Agency (HPA) are not included. They have historically been included in the NHS estimates. 

Employment in Executive NDPBs sponsored by the Department of Health, excluding the impact of the HPA, increased by 2,050 on a headcount basis and by 1,930 on a FTE basis. This was mainly due to a change in status for the Health and Social Care Information Centre, which became an Executive NDPB on 1 April 2013.

Employment in Executive NDPBs sponsored by the Ministry of Justice decreased by 1,660 on a headcount basis, and by 1,590 on a FTE basis, due to the abolition of the Legal Services Commission.

Employment in Executive NDPBs sponsored by Scottish Government decreased by 1,370 on a headcount basis, and by 1,340 on a FTE basis. This was mainly due to the abolition of the Scottish Police Services Authority (SPSA). Some of the functions of the SPSA have been taken over by the Scottish Policing Authority, and some by the Police Service of Scotland.

Employment in Executive NDPBs sponsored by the Department for Environment, Food and Rural Affairs decreased by 1,040 on a headcount basis, and by 1,010 on a FTE basis. This was mainly due to the transfer of staff from the Environment Agency to Natural Resources Wales.

Employment in Executive NDPBs sponsored by the Welsh Government decreased by 510 on a headcount basis, and by 480 on a FTE basis. This was due to the abolition of the Countryside Council for Wales, whose functions were taken over by Natural Resources Wales.

Background notes

  1. Basic Quality Information

    In 2005 the Office for National Statistics (ONS), in collaboration with other government departments and the devolved administrations, implemented major improvements to public sector employment (PSE) estimates. Standard definitions for public sector employment across all departmental statistics were agreed and a single definitive set of quarterly PSE estimates introduced. A new Quarterly Public Sector Employment Survey (QPSES) was established. ONS publishes official PSE estimates each quarter as National Statistics, in the form of a Statistical Bulletin, approximately 11 weeks after the period to which they refer.

    Further details can be found in the Quality and Methodology Information for Public Sector Employment (115.9 Kb Pdf) article.

  2. Relevance to Users

    The public sector comprises central government, local government and public corporations as defined for the UK National Accounts. ONS produces the United Kingdom’s National Accounts. The National Accounts are an internationally comparable accounting framework that describes the activities in a national economy. The relevant international manuals are the System of National Accounts 1993 (SNA93) and the European System of Accounts 1995 (ESA95). As part of the process of producing the National Accounts, ONS decides on the classification of institutions and transactions within the economy using the current UK classification process (81.9 Kb Pdf) .

    The Public Sector Classification Guide is published monthly by ONS, and provides information on the classification of organisations and institutions in the National Accounts.

    The public sector employment estimates relate to the number of people employed according to returns from relevant organisations, but they include a number of workers with a second job in the public sector whose main job is in the private sector or in a separate public sector organisation. The private sector estimate, which is obtained by taking the difference between the Labour Force Survey estimate of people employed in the whole economy and the public sector total, will thus tend to be correspondingly understated by a small percentage.

    Headcount estimates are based on the number of employees with an employment contract who are being paid by the organisation. Employees can be permanent, on a fixed-term contract or employed on a casual basis. Self-employed, contract workers and agency workers are excluded.

    Permanent employees, as defined in Tables 9 and 11, are employees with a contract with no agreed expiry date or a fixed term contract of more than 12 months. Temporary/casual employees are those with a fixed term contract of 12 months or less or employed on a casual basis.

    As well as the headcount estimates, estimates have also been produced for the number of employees in full-time equivalents (FTE) back to 1999. This is based on converting part-time employees’ hours into a full-time employees’ equivalent and provides a better indication of total labour input than a simple headcount.

  3. Common Pitfalls in Interpreting Series

    Estimates of public sector employment for Q1 2013 to Q2 2013 are based partly on projections for some sources. As part of the development programme to improve the quality of public sector employment estimates, public sector organisations are working towards the production of timely quarterly estimates. Until this development programme is completed, there remains a requirement to include estimates for certain sources:

    1. Police (including civilians) workforce estimates for England and Wales are published every six months (for two quarters) by the Home Office.

    2. NHS workforce statistics for England are derived from a pay system which covers all but two English NHS organisations. This produces very good estimates of staff numbers. Figures for the two other organisations are estimated based on annual NHS Workforce Census figures. This new source of estimates will reduce the need to revise estimates in the future.

    The Home Office has provided estimates for the Police in England and Wales. These estimates are based on projections and may be subject to revision.

    All time series in the Public Sector Employment release, except for the regional series, are seasonally adjusted to aid interpretation. As seasonal adjustment does not preserve additivity within aggregation structures, relationships that hold in the unadjusted series do not necessarily hold for the seasonally adjusted series. For example, total public sector employment equals the sum total of all public sector industry estimates before seasonal adjustment, but this is not necessarily true after seasonal adjustment.

    Public sector employment statistics have previously been published for periods up to and including Q1 2013. In line with the published revisions policy for public sector employment statistics (26.4 Kb Pdf) , the statistics have been revised, to take account of late information from respondents.

    Tables 1R to 5aR illustrate the size of the revisions in each category.

  4. Concepts and Definitions

    Central government includes all administrative departments of government and other central agencies and Non-Departmental Public Bodies. As such it is wider than the Civil Service. This sector also includes HM Forces and the National Health Service (NHS). Within education, academies and free schools are classified to central government. From 1 April 2005, central government includes the former Magistrates' Courts Service which has been brought together with the Court Service to form Her Majesty's Courts Service. The Magistrates' Courts Service was previously classified to local government.

    Local government covers those types of public administration that only cover a locality and any bodies controlled and mainly financed by them. The sub-sector includes all areas of administrative authorities including parish councils, though these units are not covered by the current estimates for local authorities. It includes police forces and their civilian staff. All functions of local authorities are classified to the sub-sector, although trading activities that produce market output (for example, housing and municipally owned markets) are regarded as quasi-corporations and appear under public corporations. Local education authorities are part of local government, as are voluntary aided schools, county schools and, from September 1999, foundation schools (formerly grant-maintained).

    Public corporations are companies or quasi-corporations controlled by government. Examples include Royal Mail and London Underground Ltd. These companies receive more than half their income from sales of goods or services into the market place (see background note 8 for details about financial institutions, for example Lloyds Banking Group and Royal Bank of Scotland Group, classified to the public sector).

    The estimates of Civil Service employees count all home Civil Service employees (including from 1 April 2005 the employees of the former Magistrates' Courts Service). Civil Service employees can be classified to central government or public corporations. Examples of public corporations include the UK Intellectual Property Office and the Driving Standards Agency. Civil Service estimates exclude the Northern Ireland Civil Service and other Crown servants. Employees in these groups are included in estimates of central government employment.

  5. Accuracy

    Response Rates:

    PSE statistics are compiled from a range of sources. The primary source is the Quarterly Public Sector Employment Survey (QPSES). The QPSES comprises three separate data collections; the home Civil Service, Local Authorities in England and Wales and Great Britain public corporations and Non-Departmental Public Bodies (NDPBs). Returned questionnaires go through a series of automated validation tests to check for completeness and consistency and to identify any significant movements compared with the previous period reported (and the same period the previous year). The automated checks are followed up with respondents where errors are detected or further explanation is required. The target is to clear 95% of test failures prior to processing results. ONS targets for response to each of the three surveys ahead of compiling results are 85% (number of respondents) and 90% (of total employment). In addition, each survey has a list of critical respondents (usually those with the largest employment) for which special efforts are made to achieve 100% response and clearance of test failures.

    Table 1: Response Rates for Sources of Public Sector Employment, Q2 2013

      Response (% of questionnaires returned) Response (% of employment returned)
    Local Authorities Survey 94 94
    Public Bodies Survey 92 97
    Civil Service Survey 100 100
    Other Sources (see below) 100 100

    Table source: Office for National Statistics

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    Data for non-responders are imputed based on previous returns and known annual changes in seasonality. It is extremely rare for a local authority, public body or Civil Service department to non-respond for two consecutive quarters. The data collection is statutory for local authorities and public bodies (Statistics of Trade Act 1947) and positive action is taken to address non-response issues as and when they occur.

    So that estimates of total public sector employment can be made it is necessary for further information to be gathered from external sources.

    Table 2: External Sources of Data for Public Sector Employment Statistics

      Geographic Coverage Source
    Central Government
    HM Forces  UK Ministry of Defence: DASA
    National Health Service  England Health and Social Care Information Centre(IC)
    Wales NHS Wales Informatics Service
    Scotland Scottish Government
    Northern Ireland Department of Finance and Personnel
    Academies England School Workforce Census and list of all open academies (Department of Education)
    Other Central Government Great Britain Quarterly Public Sector and Employment Survey (ONS); Probation Service and Police Strength
    Northern Ireland Department of Finance and Personnel
    Local Government
    Local Authorities England and Wales Quarterly Public Sector and Employment Survey (ONS)
    Scotland Joint Staffing Watch (Scottish Government)
    Northern Ireland Department of Finance and Personnel
    Police (including civilians) England and Wales Home Office
    Scotland Joint Staffing Watch (Scottish Government)
    Northern Ireland Department of Finance and Personnel
    Public Corporations
    Great Britain Quarterly Public Sector Employment Survey (ONS)
      Northern Ireland Department of Finance and Personnel

    Table source: Office for National Statistics

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    ONS is now able to produce regional estimates of PSE based on returns from public sector organisations (Table 6). These supersede those produced using the Labour Force Survey (LFS) which previously had been used in conjunction with national PSE estimates to produce estimates by region.

  6. Future Revisions

    Statistics for the NHS for England for Q4 2007 onwards are partly based on projections and informed modelled estimates have been supplied by the Information Centre for Health and Social Care. These estimates may be revised following the publication of the annual NHS workforce statistics.

    Statistics for the Police (including civilians) for Q4 2007 onwards for England and Wales are based partly on projections supplied by the Home Office. These estimates may be revised following the publication of the latest Home Office statistics.

    Due to ongoing validation of data from the new HM Forces Personnel Administration System, figures for Q2 2007 onwards are provisional and subject to review.

  7. Coherence

    The estimates of public sector employment in education (SIC division 85) differ from the school workforce estimates published by the Department for Education (DfE) (formerly Department for Children, Schools and Families (DCSF)) mainly as a result of differences in coverage and data sources. DfE estimates focus on the number of FTE teachers and support staff for England only. By comparison, the ONS estimates are derived by allocating local authority employees to education using the Inter-Departmental Business Register (IDBR) and the QPSES in England and Wales. The DfE School Workforce Census school level estimates are used to estimate employment in academies in England. PSE estimates include all employees reported by local authorities as working in primary, secondary and adult education establishments including some groups who are not covered by the DfE statistics, such as adult education staff and certain categories of support staff. Employment estimates for education in Scotland and Northern Ireland are also included to give a wider UK coverage. The different coverage of the ONS and DfE education statistics serve the needs of different users. Those who require information on the workforce in England who are directly involved in pupils' teaching and learning should use DfE published statistics. Users should also refer to DfE published statistics to gauge trends in education employment. Those who seek data on UK public sector employment in education, in its widest sense, should use the ONS data in this release. For further information on the differences between DfE and ONS data on education please see pages 44 to 46 of the Public Sector Employment Trends 2005 (463 Kb Pdf) article published in October 2005.

    ONS estimates for the NHS also differ from the headline figure produced by the Health and Social Care Information Centre (HSCIC). Again, this reflects the wider UK coverage (HSCIC figures are for England only) plus the exclusion by ONS of general practitioners (GPs). ONS, in accordance with National Accounts practice, classifies GPs as part of the private sector. ONS also include ‘hospital practitioners and clinical assistants’ who work in hospitals on a salaried pay scale but generally work as GPs leading the IC to exclude them from their totals to avoid double counting. When these factors are allowed for, ONS and NHS data can be shown to be identical.

    Sector classification and machinery of government changes in the period since 30 June 2012 are listed here:

    Table 3: Sector Classification and Machinery of Government Changes, 1 July 2012 - 30 June 2013

    UK Border Agency On 1 April 2013 UK Border Agency was subsumed into Home Office HQ , resulting in the transfer of approximately 11,150 staff.
    Treasury Solicitor During Q2 approximately 70 staff transferred to Treasury Solicitor from Department for Work and Pensions and Department for Communities and Local Government.
    Legal Aid Agency The Legal Aid Agency (LAA) was established 1 April 2013.  It replaces the now abolished Legal Service Commission (LSC, was an executive non-departmental public body).  Approximately 1600 staff transferred from LSC to LAA when LAA was established
    National College for Teaching and Leadership Teaching Agency and National College merged on 1 April 2013 to become National College for Teaching and Leadership.
    Government Car and Despatch During Q2 Government Car and Despatch was subsumed into Department of Transport, resulting in the transfer in of approximately 90 staff.  
    Public Health England Public Health England came into operation on 1 April 2013 having taken over the roles and responsibilities of Health Protection Agency.  It is an executive agency of the Department of Health and accounts for approximately 5,100 staff.
    Medicines and Healthcare Products Regulatory Agency (MHRA) On 1 April 2013 MHRA merged with National Institute for Biological and Standards Control (NIBSC) leading to an increase on 294 staff at MHRA.  
    Environment Agency Approximately 40 staff TUPE transferred from the Environment Agency to Welsh Government in Q1 2013.
    Land Registry 20 staff transferred to Ordnance Survey in Q1 2013.  
    Enforcement and Crime Group During Q1 2013 approximately 240 staff moved from Enforcement and Crime Group in the UKBA to to Home Office HQ during Q1 2013.
    Fire Service College As of 28 February 2013 the College (approx 140 staff) is no longer part of the Civil Service.
    Government Equalities Office (GEO) GEO (approx 96 FTE) transferred from Home Office HQ to Department for Culture, Media and Sport in Q1 2013.
    Her Majesty's Courts and Tribunals Service (HMCTS) During Q4 2012, 25 staff transferred from HMCTS to Ministry of Justice HQ.
    National Policing Improvement Agency (NPIA) During Q4 2012, 510 FTE transferred from the NPIA to the Home Office HQ. 
    Asset Protection Agency  Closed on 31 October 2012.  
    Criminal Record Bureau The Disclosurse and Barring Service was established on 1 December 2012 following the merger of the Criminal Records Bureau and the Independent Safeguarding Authority.
    Child Maintenance and Enforcement Commission (CMEC) As of 31 July 2012 CMEC was subsumed into the Department for Work and Pensions.

    Table source: Office for National Statistics

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  8. Financial Institutions Classified to the Public Sector

    On 19 February 2009, ONS announced the classification of Royal Bank of Scotland Group and Lloyds Banking Group as public corporations from 13 October 2008. To facilitate analyses of public sector employment estimates by users, the following non seasonally adjusted time-series has been created to demonstrate the full impact of recent financial corporations’ classifications to the public sector (based on Standard Industrial Classification 2007, industry 64 (Financial Intermediation)).

    Table 4: Employment in Financial Institutions Classified to the Public Sector

    Period  Headcount Full-time equivalent
    Q1 20081 9,300 8,700
    Q2 2008 9,400 8,800
    Q3 20082 10,700 10,100
    Q4 20083 234,200 215,500
    Q1 2009 237,000 214,900
    Q2 2009 231,000 210,300
    Q3 2009 224,400 203,800
    Q4 2009 214,500 195,100
    Q1 2010 211,700 192,700
    Q2 2010 214,100 195,600
    Q3 2010 211,200 192,200
    Q4 2010 204,900 187,500
    Q1 2011 205,200 188,100
    Q2 2011 203,100 186,400
    Q3 2011 200,300 184,100
    Q4 2011 195,600 179,700
    Q1 20124 192,000 176,400
    Q2 2012 188,800 173,500
    Q3 2012 185,500 170,500
    Q4 2012 182,200 167,900
    Q1 2013 182,000 167,600
    Q2 2013 182,900 168,700

    Table source: Office for National Statistics

    Table notes:

    1. Bank of England classified as a public financial corporation on 7 February 2008 from its inception (1946). Norther Rock plc classified as a public financial corporation from 9 October 2007.
    2. Bradford and Bingley plc classified as a public financial corporation from 26 September 2008. 
    3. Lloyds Banking Group classified as a public financial corporation from 13 October 2008.  Royal Bank of Scotland Group classified as a public financial corporation from 13 October 2008. 
    4. Northern Rock plc classified as private sector following its sale to Virgin Money Holdings (UK) Ltd, on the 1 January 2012.  More information about the sale can be found on the UK Financial Investments Ltd website. 

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  9. Further Education Colleges

    On 13 October 2010, ONS announced the reclassification of further education colleges and sixth form college corporations to the public sector. ONS, as part of the Q4 2010 publication, took on employment estimates for further education colleges back to 1993 or their inception if later.

    On 31 May 2012, ONS announced the reclassification of English further education colleges and sixth form college corporations to the private sector, as Non-Profit Institutions Serving Households (NPISH), effective from 1 April 2012. As such, employment estimates for English further education colleges and sixth form college corporations are included in ONS estimates of public sector employment from 1993 or their inception if later, up to and including Q1 2012. English further education colleges and English sixth form college corporations estimates of employment are not included in public sector employment estimates from Q2 2012 onwards. More information on this decision can be found in the Reclassification of Further Education Corporations and Sixth Form Colleges in England article published on 31 May 2012.

    Table 8 provides headcount and full-time equivalent (FTE) series for English further education colleges and sixth form college corporations, public owned financial corporations and public sector employment minus English further education colleges, sixth form colleges and publicly owned financial corporations. 

  10. The Census

    The Census is a count of the population in the UK. It takes place every 10 years and asks everyone the same questions to give a complete picture of the nation. This information is used to estimate the likely number of people and households in each area for the next 10 years. The ONS designs, manages and runs the census in England and Wales. The General Register Office Scotland (GROS) and the Northern Ireland Statistics and Research Agency (NISRA) are responsible for the census in Scotland and Northern Ireland. All three agreed to conduct their 2011 censuses on the same day (27 March 2011) in order to produce consistent and coherent information that covers the whole of the UK. The Census generated approximately 40,000 temporary public sector jobs across the UK, covering a range of part-time and full-time roles.

    The number of people in public sector employment was 6.102 million at Q2 2011, a decrease of 94,000 compared with Q1 2011. The estimate for Q1 2011 includes 15,000 people employed on a temporary basis in connection with the 2011 Census, but there were only 1,000 people employed in these temporary jobs at Q2 2011. Excluding people employed in temporary Census posts, the fall in public sector employment between Q1 and Q2 2011 was 80,000.

  11. Coverage of Academies in England

    Improvements to the way employment in public sector education in England is estimated were first implemented as part of the PSE, Q3 2012 release. Revisions to the estimates caused by these improvements were at that time incorporated into the revised PSE series, in line with the revisions policy for public sector employment statistics (26.4 Kb Pdf) . Further details of the change in method and the impact on estimates of PSE are available in 'Public Sector Employment Statistics - Change in Method for Estimating Employment in Education in England', published as part of the Public Sector Employment, Q3 2012 release.

  12. Publication Policy

    The complete run of public sector employment data in the tables of this statistical bulletin is also available to view and download in other electronic formats free of charge using the ONS Time Series Data website service. Users can download the complete Public Sector Employment Time Series in a choice of zipped formats, or view and download their own selections of individual series.

    ONS launched its new website on 27 August 2011. The new website improves the way users can access our statistics but many existing bookmarks and links will no longer work and users will need to update them. More information can be found on our Web Development page.

    A list of those given pre-publication access to the contents of this release is published as part of this release.

  13. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk

Statistical contacts

Name Phone Department Email
Emily Carless +44 (0)1633 455717 Office of National Statistics pse@ons.gsi.gov.uk
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