Friday 23 January 2009

The myth of munificence


A little bugbear of mine....

One of the many parables that does the rounds with regards to Scotland and its economy is the broad, unquestioning acceptance that Scotland has an unduly bloated public sector. Or, more precisely, that a disproportionate number of Scots (sometimes this extends to an outright "majority") work for the state in some capacity or other.

It is perhaps worth examining these beliefs to see how they stack up in reality. Fortunately, the Scottish Government, perhaps sensitive to the claims noted above, publish a quarterly tracker of the number of Scots employed in the public sector, expressed as a percentage of the overall working population.

The latest figures relate to Q3 of 2008 and were published just before Christmas. Quoting directly from the release and emphasising the important statistic (in bold):

  • In quarter 3 (Q3) 2008, there were 575,700 people employed in the public sector which is an increase of 47,500 (9.0 per cent) since 1999 and an increase of 300 (0.04 per cent) since 2007.
  • The public sector currently accounts for 22.6 per cent of employment in Scotland which has decreased from 22.8 per cent in Q3 1999 and increased slightly from 22.5 per cent over the year from Q3 2007.

In essence, therefore, just over a fifth of the Scottish workforce is employed by the state, and almost 80% of the workforce is employed within the private sector. Given such statistics, I can't really see why this leads to the degree of opprobrium that Scotland is afforded with respect to this issue.

Perhaps Scotland is substantially ahead of the other nations and regions of the United Kingdom in the league of public sector employment?

Well, it doesn't really seem that way either. According to these figures, it is true to say that England, overall, has lower public sector employment at just under 20% of the workforce, but the difference is quite clearly not significant - certainly not enough to warrant the column inches devoted to Scotland's supposed "dependence on the state" and the indigenous problems that such a situation poses for us.

Nonetheless, I think it is fair to say, that the numbers employed by government, local government and the Quangocracy that has mushroomed here since 1999, could probably be slimmed down much further.

But can we nail the myth, once and for all, that Scotland's employment situation is predicated on having a very heavy public sector? It just ain't true, I'm afraid.

5 comments:

Jim said...

Nice posts!
Looking forward to reading more from you.

Anonymous said...

Looks like Calman is being wound up.

Alan Smart said...

Good post. But how is "public sector" defined. I am sure the percentags are higer than the 22% you quote, much higher.

Is your "public sctor" not just direct Governmet employees - ie coucils, quangso etc - a big slice of the emprire aint incldued?

But the 10,000 ( 20%) plus increase since 1999 says it all. I though devolution was brought into control the beuracray , not feed it?

And whatver happened to the labour saving wonder of new technology? Passed scotland's "public sector" by it appears.

And it much, much bigger than Englands or comparable countries. Just dont have the stats to hand. But it sure is, and big time

Do more digging - but you are on the right tracks

Components of Independence said...

Thanks for the comments. I am rubbishly bad at this blogging thing.

AWC, the public sector is generally defined in the way you have illustrated. It is the activities of government, its ministries and its agencies and those that are employed therein.

There is of course the much wider vehicle of "government consumption" but that is something which is incredibly difficult to measure and/or quantify.

But in reality, the point I am ramming home is that the public sector is not "much, much" bigger than England and the comparable figures highlighted in this post clearly show this.

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