Decade of boom in jobs is fuelled by the public sector

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The study by the Financial Times found that two out of three jobs created since 1998 were in sectors dominated by public services, raising fears that private-sector firms may be less resilient to a recession than previously thought.

Officially, the rise in the number of public-sector workers from 1998 to 2006 is 600,000.

However, these figures from the Office for National Statistics exclude a range of professionals including family doctors, supply teachers and university lecturers, whose salaries are paid for by the state.

The research suggests the true increase in public-sector workers should be 900,000.

There are also other workers, such as those in childcare, who are employed by private firms but whose posts are largely dependent on the Government's huge expansion in this sector as it seeks to get more parents back into work.

Experts argued that the findings may point to the private sector in the UK being less dynamic in creating jobs than previously believed. Women, including those working part-time, have in particular found work in the public sector.

Downing Street played down the study, saying Treasury officials were questioning the figures.