Which education sector is least affected by the financial crisis?
The UK economy is in the midst of a financial crisis, with public sector earnings down and employment levels at a record low.
The latest government figures show public sector net employment has fallen to 2.5 million and the number of jobs has dropped by more than 200,000 in the past year, according to the Office for National Statistics (ONS).
The ONS said that while private sector employment in the UK is at its highest level since the Second World War, there are more than one million fewer jobs available for people to earn a living.
The figures will have implications for the country’s finances, which are likely to be hit by higher interest rates.
In contrast, there were 1.5m more jobs in the private sector in June than a year ago.
The ONS added that the number was up from a record high of 1.9 million in June 2015.
A spokeswoman for the Department for Education said: “We know that more than two million jobs have been lost in the last year.
This is an extremely difficult time for families and businesses and it is essential that we build on this good news to deliver long-term prosperity for the UK and the rest of the world.”
While employment has been dropping, the unemployment rate remains high at 8.2%, and the unemployment benefits system is expected to continue to be stretched.
Despite the economic crisis, the UK government has been able to borrow money at a low interest rate, meaning it is not a net debt burden.
According to the latest ONS figures, the government borrows $17bn annually and pays it off at an interest rate of 2.75% per annum.
This is below the current rate of 5.25%.
The government is also able to spend a lower amount of tax money, at a higher rate of 8.5%.
“In spite of the financial difficulties, the Government is still able to make significant investment in the economy,” the spokesperson added.
In a statement, the Department of Business, Innovation and Skills (BIS) said:”While the Government’s finances remain challenging, we have been able, in many areas, to balance the books.”
As we embark on our economic recovery, we will continue to focus on delivering the support necessary to keep our economy strong and sustainable.
“We have set out our long-range targets for spending and investing and are working closely with industry, business and others to deliver the best possible outcome.”