The Treasury forecasts 490,000 public job losses as a result of this month’s budget measures. But the Office for Budget Responsibility reckons that 1.8m jobs will be created in the private sector.
Between 1994 and 1999, Canada, Sweden and the UK each tightened fiscal policy by about 7% of GDP. That made public-sector employment fall by 50,000 in Canada and Sweden, and 294,000 in the UK – but private-sector employment grew by 1.7m in Canada, 250,000 in Sweden and 1.95m in the UK.
According to the Office of National Statistics, 308,000 private-sector jobs were created over the summer, more than offsetting the 22,000 that were lost from public-sector bodies.
Via Philip Aldrick.