Public sector workforce set to fall by 600,000, OBR predicts

1 Jul 10
The total number of people employed in the public sector is set to drop by more than 600,000 or 10% by 2015/16, the latest figures from the Office for Budget
By David Williams

01 July 2010

The total number of people employed in the public sector is set to drop by more than 600,000 or 10% by 2015/16, the latest figures from the Office for Budget Responsibility show.

The OBR data, published on June 30, showed that cuts to departmental spending will bring those on the government payroll down from 5.53 million to 4.92 million. The expected job losses are 150,000 higher than were expected under Labour because the coalition government is planning to cut spending more.

The information was released after the Guardian published the findings of a Treasury draft document.

It also claimed Treasury data showed that 700,000 private sector jobs would be lost as a direct result of the cuts as government contracts dry up.

The Treasury disputed the report and emphasised that it expected overall employment to rise in every year of the current Parliament.

The OBR forecasts net growth for the labour market as a whole. It expects 30.23 million people to be in jobs by 2015/16, against 28.89 million currently.

At Prime Minister’s Questions, also on June 30, acting Labour leader Harriet Harman said the job losses would cause ‘abject misery’.

Prime Minister David Cameron said measures announced in last week’s Budget would lead to 2 million new jobs in the private sector.

Did you enjoy this article?

AddToAny

Top