Employment growth in the UK: the sectoral view
Considering the state of the economy, employment growth in the UK is, with 1,7%, quite high. Which sectors added most jobs? Remarkably, about half of total job growth is located in education and health. In the UK, education is a female dominated sector (71%). More than half of the net new entrants were male, however. Does anybody know why education added so much jobs in the UK?
By the way – I severely disagree with Scott Sumner when he, when writing about employment in the UK, complains that “Europe appears incapable of creating a St Louis Fred-type data set that doesn’t require a PhD in computer science to navigate“. He should not complain. Being able to navigate the large number of economic datasets available on the internet and to understand the concepts of the statistics is a basic skill for the modern economist, with or without a PhD, and students of economics should spend a lot of time on acquiring it (Paul Krugman is remarkably good at this).
I do however agree with the caveats mentioned by Scott, when he tries to analyse these data. And not just the jobs data indicate higher growth than at present estimated by the ONS, the increasing deficit on the current account points in the same direction. Remember, however, that employment is a lagging variable and the decline of the British economy in the fourth quarter still has to show up in the employment data – I expect Britsh employment growth to go down and unemployment to go up in the January-March period. An interesting development in Germany: moderate job growth in Germany (for a large part concentrated in ‘health!’) in 2012 was to a very considerable extent caused by people working fewer hours per person.