Osborne called it wrong on private sector employment

New figures show that the private sector isn't making up for public sector job losses.

New figures show that the private sector isn't making up for public sector job losses.{C}

In November 2010, George Osborne told the House of Commons that private sector job creation would "far outweigh" the job losses in the public sector. The Chancellor, an adherent of the theory of expansionary fiscal contraction, assumed that a bloated public sector was "crowding out" pirvate sector growth.

But today's employment figures tell a different story. Osborne's fiscal contraction has turned out to be, well, contractionary. In the last three months, 67,000 public sector jobs have been lost but just 5,000 private sector jobs have been created. The number of public sector jobs lost in the last year (276,000) now exceeds the number of private sector jobs created (262,000). As a result, unemployment has reached levels not seen for 17 years. There are now 2.64m people (8.3 per cent) out of work, including 1.03m young people. Youth unemployment is now 22 per cent, above the eurozone average of 21.4 per cent.

Over the course of this parliament, the Office for Budget Responsibility still expects private sector job creation to outweigh public sector job losses. By 2017, it forecasts that there will be 1.7 million more private sector jobs and 710,000 fewer public sector jobs. But given that the OBR has already had to raise its forecast for public sector job losses by 310,000, I wouldn't put too much faith in those figures. If the government wants to prevent unemployment hitting three million, it should call a halt to its job cuts now.

George Eaton is political editor of the New Statesman.

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Owen Smith apologises for pledge to "smash" Theresa May "back on her heels"

The Labour leader challenger has retracted his comments. 

Labour leader challenger Owen Smith has apologised for pledging to "smash" Theresa May "back on her heels", a day after vigorously defending his comments.

During a speech at a campaign event on Wednesday, Smith had declared of the prime minister, known for wearing kitten heels:

"I'll be honest with you, it pained me that we didn’t have the strength and the power and the vitality to smash her back on her heels and argue that these our values, these are our people, this is our language that they are seeking to steal.”

When pressed about his use of language, Smith told journalists he was using "robust rhetoric" and added: "I absolutely stand by those comments."

But on Thursday, a spokesman for the campaign said Smith regretted his choice of words: "It was off script and on reflection it was an inappropriate choice of phrase and he apologises for using it."

Since the murder of the MP Jo Cox in June, there has been attempt by some in politics to tone down the use of violent metaphors and imagery. 

Others though, have stuck with it - despite Jeremy Corbyn's call for a "kinder, gentler politics" his shadow Chancellor, John McDonnell, described rebel MPs as a "lynch mob without the rope"

Smith's language has come under scrutiny before. In 2010, when writing about the Tory/Lib-Dem coalition, he asked: "Surely, the Liberal will file for divorce as soon as the bruises start to show through the make-up?"

After an outcry over the domestic violence metaphor, Smith edited the piece.