Importance of Public Sector Productivity in the UK Economy
Public sector productivity (PSP) is a crucial aspect of the UK economy, accounting for a significant portion of employment and consumption. Enhancing PSP through effective management and utilization of digital technologies can lead to substantial growth opportunities at both national and local levels. The distribution of top employers in Nottinghamshire reflects the balance between public and private sectors, highlighting the importance of PSP in regional economies.
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The importance of public sector productivity Patrick Dunleavy London School of Economics Presentation to the UK in a Changing Europe Conference on the UK Economy, London 31 January 2024
Public sector productivity (PSP) matters because It accounts for minimum 1 in 6 employees, and over 1/4 of the UK s final consumption PSP is not static but can grow spectacularly (Customs 1990-2010) or stagnate/decline for decades (DWP 1988-2010) Really growing PSP means measuring it at the level of each big department and agency, where management can shape performance (not just national sectors as ONS still does) Current digital era governance changes (AI, large language models, drones, robots, new wave automation) offer unprecedented chances for rapid PPS growth Outside London, the pace of PPS change and skills in managing it matter for the whole local/regional economies of cities, for private sector growth dependent on anchor institutions in a landscape of firms generally < 50 staff
Percent of top 20 staff 17.5 11.5 10.5 9.6 7.7 6.4 6.4 5.9 4.3 4.1 2.6 2.0 1.9 1.8 1.4 1.3 1.3 1.3 1.3 1.3 100.0 Who are the top employers locally in the UK s regional cities? Rank Top 20 employers Nottingham University Hospitals Trust Nottingham City Council Nottinghamshire County Council Nottinghamshire Health Care Trust Boots UK Limited University of Nottingham Eon Sherwood Forest Hospitals Trust Nottingham Trent University Nottinghamshire Police Experian Nottingham College Center Parcs North Midlands Construction plc Nottingham City Transport Limited Nottingham Citycare Partnership CIC HMRC (Whitehall dept) Pork Farms (Addo Food Group) Vision West Notts College Rolls Royce Top 20 employers Staff 13,600 8,930 8,160 7,500 6,000 5,000 5,000 4,560 3,310 3,200 2,000 1,520 1,500 1,420 1,080 1,050 1,000 1,000 1,000 980 77,810 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Nottinghamshire data from Will Rossiter et al Source: Will Rossiter, Anderson & Karagounis , Who are the top employers in Nottinghamshire ? 2018 Total Public sector or quasi-governmental agencies
Who are the top employers locally in the UKs regional cities? Nottinghamshire Type of Industry Public Private Percent of top 20 employers staff 73 27 Staff 57,090 20,720 Services Manufacturing Construction 74,390 2,000 1,420 96 2.6 1.8 Source: Will Rossiter, Anderson & Karagounis, Who are the top employers in Nottinghamshire ? 2018 https://irep.ntu.ac.uk/id/eprint/34560/1/11904_Rossiter.pdf
Thanks for listening To learn more about: - Data science, artificial intelligence and the third wave of digital era governance (with Helen Margetts) https://doi.org/10.1177/09520767231198737 - Regional and local productivity in the public sector https://www.oecd.org/regional/W3-S2-Patrick-Dunleavy.pdf
