This paper presents new arguments and evidence about public and private employment creation in the UK. Our measures of public sector employment count state employees and estimate para-state employees whose private employment is state supported. On this basis, state and para-state since 1998 account for more than half the job creation nationally and for much more in the ex-industrial regions. Our argument is that the UK has an undisclosed business model of using publicly supported employment to cover the continuing failure of the private sector to generate and distribute welfare through job creation.

KEYWORDS: business model, employment, finance, state and para-state