Characteristics of people employed in the public sector

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1 489 Characteristics of people employed in the public sector By Daniel Heap, Labour Market Division, Office for National Statistics Key points In per cent of people employed in the public sector were women compared with 41 per cent of those employed in the private sector. The public sector workforce is older than the private sector workforce. In per cent of public sector workers were aged 35 and over compared with 62 per cent of private sector workers. In 24 3 per cent of public sector workers worked part-time compared with 24 per cent of the private sector workforce. Also, 15 per cent of public sector workers usually worked over 45 hours per week compared with 23 per cent of the private sector. The proportion of White and non-white workers in both the public and private sector was around 7 per cent in 24. Around 13 per cent of both public and private sector workers were long-term disabled. Introduction This article focuses on the characteristics of people employed in the public sector using information from the Labour Force Survey (LFS). The article Trends in public sector employment (see pp ) examines public sector employment from 1991 to 25 using ONS estimates based on administrative and survey data from public sector organisations. Estimates based on returns from public sector organisations are ONS s preferred source for providing the level of public sector employment but, at present, do not provide any information on characteristics of public sector employees. The LFS has therefore been used to examine a range of public sector worker characteristics compared with the characteristics of private sector workers. The LFS is a large household survey carried out continuously across the UK, sampling over 5, households every quarter. It gives the UK s headline measure of the number of people in employment for the whole economy. However, like estimates for industry, it is not ONS s preferred measure of the total number of employees in the public sector. This is because information from employers is considered more reliable for providing these figures. The LFS estimates of the number of workers in the public sector are essentially derived from respondents views on whether they work for a private or non-private organisation. This, along with the way that the public sector variable is defined, means that the LFS overestimates the number of people working in the public sector according to National Accounts definitions (for example GPs and further education staff are included). Despite this, the strength of the LFS (when looking at public sector employment) is that it gathers additional information about people s characteristics that is not collected from public sector organisations. It provides a wealth of contextual information about

2 49 Characteristics of people employed in the public sector workers in the public and private sectors which cannot be obtained from employers sources. The article begins with an overview of how public sector employment status is established in the LFS. It then moves on to consider the differences between the LFS estimates and those based on information from public sector organisations. It presents work that has been undertaken, at the analysis stage, to bring estimates of the number of workers in the public sector from the LFS more in line with National Accounts definitions. The characteristics of public sector workers are then presented using figures obtained from this adjusted LFS measure and compared with those in the private sector. The article concludes by looking at work ONS is planning to undertake to further improve the public and private sector classification on the LFS. This work could potentially improve the public and private sector classification on the LFS, leading to estimates that are more in line with those collected according to National Accounts principles, from public sector organisations themselves. Measuring public sector employment in the LFS The LFS asks respondents two questions in order to define whether someone is employed in the public or private sector. Firstly, those in work in the week before the interview are asked whether the organisation that they worked for was either: 1. a private firm or business or a limited company; or 2. some other kind of organisation. If respondents answer that it was some other kind of organisation, Figure 1 sector employment estimates from public sector organisations compared with those from the LFS; United Kingdom; Q to 25, not seasonally adjusted 7,5 7, 6,5 6, 5,5 5, 4, Sources: Labour Force Survey; returns from public sector organisations, ONS then they are asked what type of non-private organisation was it?. Their response is then coded by the interviewer as one of the following: 1. a public limited company/plc 2. a nationalised industry/state corporation 3. central government or civil service 4. local government or council (including police, fire services and local authority controlled schools/colleges) 5. a university or other grantfunded establishment (including opted-out schools) 6. a health authority or NHS Trust 7. a charity, voluntary organisation or trust 8. the armed forces 9. some other kind of organisation. If respondents state that they work for a public limited company or charity, voluntary organisation or trust, they are classified as a private sector worker in the LFS 22 Adjusted LFS LFS Data from public sector organisations respondents falling into the remainder of the categories are classified as public sector workers. Respondents who report that they are self-employed or unpaid family workers are also classified as private sector workers. Respondents on government employment and training schemes (apart from those on college-based schemes) are classified into the public or private sector in the same way as other workers (that is, using the questions above). Those on college-based schemes are considered neither public nor private sector workers. Given the way that the LFS classifies people to the public and private sector, respondents can end up being classified as working in the public sector when really they are in the private sector, according to National Accounts definitions. An example is employees of publicfunded bodies, such as universities and further education colleges, who are classified as being in the public sector according to the LFS.

3 491 Table 1 sector employment estimates from public sector organisations compared with those from the LFS; United Kingdom; 1995 to 25, not seasonally adjusted Adjusted LFS closer Difference between Difference between Data from public Data taken direct from to National Accounts LFS and public sector adjusted LFS and public sector organisations a Labour Force Survey a, b definitions c organisations data sector organisations data % of all in % of all in employment employment % of all in % of all in % of all in in levels (percentage in levels (percentage s employment s employment s employment (s) point) (s) point) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Q1 5, , , Q2 5, , , Q3 5, , , , Q4 5, , , Q1 5, , , , Q2 5, , , Q3 5, , , , Q4 5, , , , Q1 5, , , , Q2 5, , , Q3 5, , , , Q4 5, , , Q1 5, , , Q2 5, , , , Q3 5, , , , Q4 5, , , Q1 5, , , Q2 5, , , Q3 5, , , , Q4 5, , , , Q1 5, , , , Q2 5, , , , Q3 5, , , , Q4 5, , , , Q1 5, , , , Q2 5, , , , Sources: Labour Force Survey; returns from public sector organisations, ONS a Annual data from public sector organisations are based solely on June (Q2) data. Annual LFS data are estimates for June-August of that year. b Includes people with workplace outside UK and those who did not state their industry. LFS public/private split is self-defined by respondents. LFS levels of public sector employment are derived from Table 22 of the LFS Historical Quarterly Supplement. It includes respondents who gave no answer to this question who have been allocated on a pro-rata basis between public and private sector. These estimates have been derived from latest interim-adjusted estimates and will therefore differ from estimates taken directly from LFS microdata. LFS data for Q1 = March-May, Q2 = June-August, Q3 = September-November, Q4 = December-February. c Adjusted LFS data have been brought closer into line with National Accounts definitions of the public sector by the reallocation of workers who said they worked in higher education and other grant-funded establishments and those who reported themselves as being temporary agency workers to the private sector. Proportions have been applied to the latest interim-adjusted LFS employment estimates and will therefore differ from estimates taken directly from LFS microdata.

4 492 Characteristics of people employed in the public sector However, universities and further education colleges are, in fact, part of the private sector in the National Accounts, as they are not controlled by government. Employees working for agencies and/or contractors can also classify themselves as working in the public sector in the LFS when, in reality, because their employer is a private sector organisation, they should be allocated to the private sector, according to the National Accounts definitions. Another example is dentists, GPs and GP practice staff. In the LFS they are coded according to whether the practice is mainly NHS or private. So then, GPs are coded to the private or public sector depending on whether they do mainly private work or NHS work even though in the National Accounts, because they are selfemployed, they are considered part of the private sector. Thus, for the purposes of the questions in the LFS, the respondents public or private sector status is defined according to the work that they mainly do. Table 2 and private sector employment by sex; United Kingdom; 1995 to 24, not seasonally adjusted Men Women All Reconciling LFS public sector employment estimates with ONS PSE figures When the LFS is used to produce estimates of the number of workers in the public sector, it produces estimates that are around 1 million higher than those derived from public sector organisations themselves (see Figure 1). Table 1 shows that the LFS for the three months ending August 25 estimates the number of public sector workers as 7. million. This compares with 5.9 million from estimates based on returns from public sector organisations. In terms Box 1 Definitions sector The public sector is made up of employees and those on government employment and training schemes whereas the private sector also includes the self-employed and unpaid family workers. Those on college-based government employment and training schemes are neither public nor private sector and are excluded from these estimates. Annual estimates In most tables and figures (all except Tables 1 and 9 and Figure 1) annual estimates are represented as four-quarter averages. Four-quarter averages are based on spring (Mar-May), summer (Jun-Aug), autumn (Sep-Nov) and winter (Dec-Feb) each year; for example, 24 data is an average over the period March 24 to February 25.

5 493 Figure 2 Proportion of people with selected characteristics employed in the public sector; United Kingdom; 1995 to 24 Sex Age Men Women Ethnicity Disability White Non-White 19 Disabled Not disabled Full- and part-time Hours worked Part-time Full-time

6 494 Characteristics of people employed in the public sector of public sector workers as a percentage of all in employment, the LFS estimates that in the three months ending August 25 some 24.3 per cent of people worked in the public sector. For the purpose of bringing the LFS estimates more into line with National Accounts definitions ONS has undertaken work, at the analysis stage, to adjust the public sector estimates from the LFS. This involved re-allocating workers who stated that they worked for a university or other grant funded institution from the public sector into the private sector. At the same time, all workers who stated in the LFS that they worked as agency temporary workers were also reclassified as private sector workers. The result is that the difference between public sector employment estimates from the LFS and those based on returns from public sector organisations is reduced to 671, in Q2 25 rather than 1.2 million when the LFS estimates are used without being adjusted (see Table 1). GPs and GP practice staff who are allocated to the public sector in the LFS could not be reclassified to the private sector as there is no way of distinguishing these staff from other staff; GPs are grouped together with doctors and dentists who work in hospitals in the Standard Occupational Classification (2). By allocating all respondents who said they worked in a university or other grant-funded establishment, employees in grant-funded schools not under local authority control (called opted-out schools in the LFS guidance) were also allocated to the private sector when, in reality, they should be considered public sector employees according to National Accounts definitions. To ascertain how many of these employees may Table 3 and private sector employment by age band; United Kingdom; 1995 to 2, not seasonally adjusted Figure 3 and private sector employment by sex; United Kingdom; Women Sources: Labour Force Survey; returns from public sector organisations, ONS Men All

7 495 be affected, the Standard Industrial Classification (SIC 1992) of these respondents was looked at. Further investigation showed that within the education sector (SIC code 8) most of the reclassification from public to private was, as desired, in the industries of sub, first, and post-degree education (SIC codes 83). However, there was also a small re-allocation of employees who stated they worked in primary, secondary and special, statemaintained education from public to private sector (around 6, workers). Some of these (around a quarter) were agency temporary workers, so these workers have been correctly reclassified into the private sector in the adjusted LFS estimates. This leaves around 45, employees who were reclassified to the private sector in the adjusted LFS estimates who could actually be public sector workers. However, it is difficult to know precisely, as both industry coding and public/private coding are subject to respondent misclassification in the LFS. Although this affects the levels, it will only have a minimal impact on the proportions of public sector workers with various characteristics. Characteristics of public sector workers When looking at the characteristics of public sector workers on the adjusted basis, there are two ways that comparisons can be made. Firstly the characteristics of public sector workers can be shown in terms of the percentage of these workers who have the certain characteristic for example the proportion of public sector workers who are women. These can then be compared with the proportion of workers in the private sector who share the characteristic in order to put them in context (see Tables 2 to 8). Another way of looking at characteristics of public sector workers is in terms of the percentage of people with a particular characteristic who work in the public sector for example, the proportion of female workers who work in the public sector (see Figure 2). The following text describes the differences and trends looking at the characteristics of public sector workers from both perspectives outlined above. It should also be noted that estimates in this section refer to annual averages from the LFS. Fourquarter averages have been calculated from the LFS for spring to winter each year from 1995 to 24 to reduce the sampling variability of the estimates. Also, the public sector only includes employees and those on government employment and training schemes, whereas the private sector figures presented here also contain self-employed workers and unpaid family workers. Some of the differences in the characteristics could therefore be the result of the differences in employment status of individuals; for example, we know that men are more likely than women to be self-employed. Sex When broken down by sex, the LFS shows that the percentage of public sector workers who are women was 65 per cent in 24 compared with private sector workers, where only 41 per cent were women (see Figure 3). In the last 1 years the proportion of public sector workers who were women has increased by around 5 percentage points, from 6 per cent in Over the same period in the private sector, the percentage of workers who are men and women has stayed largely the same at around 59 per cent and 41 per cent respectively (see Table 2). Looking at these figures the other way, the proportion of men in employment who are employed in the public sector has decreased slightly since 1995, while the proportion of women has increased slightly more than the decrease in men (see Figure 2). Age Table 3 shows that the vast majority of public sector workers were in the 35 to 5 and 5 and over age groups. These age groups accounted for around 72 per cent of public sector workers in 24, with the 35 to 54 age group having the largest percentage of public sector workers (44 per cent) and the 5 and over age group representing 28 per cent of public sector workers. The 16 and 17 age group represented less than 1 per cent of public sector workers over the whole time period and public sector workers aged 18 to 24 represented only 6 to 7 per cent over the period. This differs from the private sector, where around 3 per cent of workers were aged 16 and 17 and around 13 to 14 per cent were aged 18 to 24 over the period. The proportion of public sector workers aged 25 to 34 has decreased slightly, from 7 per cent in 1995 to 6 per cent in 24. Since 1995 the proportion of public sector workers who were aged 5 and over increased by 5 percentage points, while the proportion of those aged 25 to 34 decreased by 5 percentage points (see Table 3). This appears to reflect changes in the workforce as a whole as similar trends exist for the private sector. Looking at the proportion of people in employment in different age groups who worked in the public

8 496 Characteristics of people employed in the public sector Table 4 and private sector employment by ethnicity; United Kingdom; 21 to 24, not seasonally adjusted White Non-White All Asian or Black or Other Total Asian or Black Ethnic non- Mixed British British Chinese Group White sector, those who are over 5 increased by nearly 2 percentage points over the last 1 years. The proportion of those in the 18 to 24 age group employed in the public sector decreased by 2 percentage points between 1995 and 1999, but has increased by around 1.5 percentage points in the last five years. It is still around 1 percentage point below the proportion for 1995 (see Figure 2). Ethnicity The proportion of workers who are White and non-white was the same in the public and private sectors in 24 (93 per cent were White and 7 per cent were non-white). Since 21 (the date from which ethnicity figures are available on a consistent basis in the LFS) the proportion of non-white workers in both the public and private sectors has increased by just over 1 percentage Table 5 and private sector employment by disability; working age; United Kingdom; 1998 to 24, not seasonally adjusted Long-term disabled Not long-term disabled All

9 497 Table 6 and private sector employment by full-time and part-time status; United Kingdom; 1995 to 24, not seasonally adjusted point (see Table 4). The proportion of the public sector who are Asian or Asian British was lower in all the years compared with the proportion in the private sector. The opposite appears to be true for Black or Black British workers, where they make up a slightly higher proportion of the public sector than the private sector. Looking at the proportion of White and non-white workers who work in the public sector there is very little difference. Overall it appears that White and non-white workers are equally likely to work in the public sector; around 22 per cent since 21 (see Figure 2). Full-time Part-time All , Disability The proportion of public sector workers of working age who were long-term disabled was 13 per cent in 24, the same as the private sector. Since 1998 (the first year that disability estimates are available) the proportion of the public sector that was made up of long-term disabled workers increased by 2 percentage points (see Table 5). A similar increase was also seen in the private sector. Looking at the proportions of longterm disabled and not long-term disabled people of working age who work in the public sector, the proportion has been similar, at around 2 to 23 per cent over the period. Since 1998 the proportions of long-term disabled and not longterm disabled workers working in the public sector have increased by nearly 2 percentage points and 1 percentage point respectively (see Figure 2). Full-time and part-time working The public sector historically has employed a larger percentage of its staff on a part-time basis compared with the private sector. In 24 3 per cent of public sector workers reported themselves as working parttime; for private sector workers the figure was 24 per cent. These proportions have remained relatively unchanged since 1995 (see Table 6). The percentage of full-time workers in the public sector has been around 2 per cent since 1995, whereas the percentage of part-time workers in the public sector has been around 25 per cent (see Figure 2). Usual hours worked Analysis by total usual weekly hours worked illustrates that workers in the public sector are more likely to work 16 to 3 hours per week than their private sector counterparts. Table 7 shows that in per cent of public sector workers usually worked between 16 and 3 hours a week compared with 17 per cent of private sector workers. The larger percentage working 16 to 34 hours is likely to represent the larger number of parttime staff who are employed in the public sector (see above). The lower percentage for the over 45 hours band will also be a product of this fewer full-time workers in the public

10 498 Characteristics of people employed in the public sector Table 7 and private sector employment by total weekly usual hours worked; United Kingdom; 1995 to 24, not seasonally adjusted -5 hours 6-15 hours 16-3 hours hours 45+ hours All sector. sector workers are also less likely to work long hours than workers in the private sector. In per cent of public sector workers worked over 45 hours while 23 per cent of private sector workers did so. Since 1995 the proportion of public sector workers usually working more than 45 hours has fallen from 17 per cent to 15 per cent. The proportion of private sector workers working long hours also fell over the same period; from 28 per cent in 1995 to 23 per cent in 25. When looked at in terms of the proportion of workers working a specified number of hours per week who are public sector workers, most of the groups follow the general UK public/private split. However, historically around 27 per cent of those working 16 to 3 hours have been employed in the public sector, while around 15 per cent of those working over 45 hours are employed in the public sector. Again this is likely to be a product of the public sector having a larger number of people working part-time than the private sector (see Figure 2). Job tenure The proportion of public sector workers who have stayed with the same employer for five years or more has been higher than that for the private sector since However, the proportion of workers who have spent five to nine years with their current employer in the public sector has decreased in recent years and is now equal to that for the private sector. In per cent of workers in the public sector stated that they had been with their current employer for five to nine years but in

11 499 Table 8 and private sector employment by time spent with current employer; United Kingdom; 1995 to 24, not seasonally adjusted 1 year 2 years 5 years 1 years or more or more or more or more Less than but less but less but less but less 2 years 1 year than 2 than 5 than 1 than 2 or more All this reduced to 17 per cent (see Table 8). The proportion of workers in the public sector who had spent 1 to 19 years with their current employer has remained between 7 and 1 percentage points higher for the public sector than the private sector since The 2 years or more tenure group has consistently been around 4 to 6 percentage points higher for the public sector. The proportion who have been with the same employer for less than one year has been around 8 to 1 percentage points less in the public sector than the private sector. This may partly reflect differences in the age profile of public and private sector workers. Union membership Looking at union membership, the percentage of public sector workers who said they were members of a union was 59 per cent in autumn 24. This value has not decreased much since autumn Over the same time period union density has reduced in the private sector; from 2 per cent in autumn 1995 to 16 per cent in autumn 24 (see Table 9). For more details of union membership see Department of Trade and Industry s Trade Union Membership 24 publication at membership24.pdf.

12 5 Conclusions From the information presented in this article it can be seen that the LFS is a useful source for analysis of the characteristics of public sector workers. However, although these estimates have been adjusted so they are more in line with the National Accounts definition of the public sector, the quality is affected by the self-defined nature of the LFS questionnaire. This can lead to respondents being wrongly classified as public sector workers when, in fact, they are private sector workers working for a company contracted by the public sector. It has been proposed that a link between LFS figures and the Inter-Departmental Business Register (IDBR) should be developed as a way to improve LFS industry figures. The IDBR includes more reliable industry classification of the organisation and this, along with some further questions on the LFS to ascertain whether an individual is an employee of that organisation rather than an agency worker working on their premises, should allow a more accurate coding of respondents public or private sector status. This method would help, for example, employees of catering firms who are contracted to provide canteen facilities to local authorities to be identified more easily and correctly classified as private sector employees. ONS is developing this approach and needs to test how well postcode Table 9 and private sector employment a by trade union membership; United Kingdom; autumn quarters 1995 to 24, not seasonally adjusted Union member Non union member All a Includes armed forces. address software matches employer information given by respondents before the feasibility of this matching project can be ascertained. However, if the link is successfully made it should significantly improve, not only the LFS classification of public and private sector employees, but industry coding and workplace location classification as well. Further information For further information, contact: Daniel Heap, Room B3/4, Office for National Statistics, 1 Drummond Gate, London SW1V 2QQ, daniel.heap@ons.gov.uk, Tel:

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