In the UK public sector employment plays a important and significant part in local economies. It has been estimated that between 1998 and 2007 there were 1.2 million new jobs created in UK cities. Of these over two thirds were in the public sector, in areas such as health and education.

A report published in July 2009 also found that some major UK cities like Swansea, Hastings, Ipswich, Barnsley and Newcastle were heavily reliant on the public sector in creating news jobs. The same report showed that in same period in Manchester 59% of all new jobs created were for public sector organisations.

One of the reasons for the increase in local authority jobs in these specific locations may be due to government departments and organisations relocating away from London.

Although this recruitment and job creation may be good for the short term in creating new vacancies and boosting local economies, on the down side it may lead city leaders to become too dependant on governments to create new job opportunities. Thereby discouraging council leaders from working harder to attract private companies to their cities. It could also leave them vulnerable to future cuts in central government spending.