The head of the National Statistics Office, Michael Pace Ross, has refuted the Finance Minister’s claim that the increase in the public sector workforce was due to a change in how jobs are classified.

Edward Scicluna had blamed a surge of more than 2,000 public sector employees since Labour came to power – when the government is meant to be reducing their numbers – on an NSO reclassification of workers.

On Monday, during a Budget consultation session, he pointed out that some 2,800 workers, who were previously within the Resources Ministry carrying out public works and were categorised by the NSO under the construction sector, had been reclassified under public administration. He said this accounted for the statistical growth in the public sector: “I am sorry to say, but this is not a true picture of the situation.”

But Mr Pace Ross, the NSO director general, insisted no government employee had ever been classified in the private sector.

“This reclassification did not have a bearing on the overall size of the government workforce, as it was carried out within the public sector. The employees who were reclassified from construction to public administration were and remained public sector employees.”

He also laid emphasis on the distinction between the term “public sector”, which incorporated all government employees, and “public administration”, which was just a part of the civil service.

Last week, in its press release on employment showing the rise in public sector jobs, the NSO had pointed out that the year-on-year increase in full-time employment within the “public administration” was primarily the result of a classification shift in public sector employment from construction.

This was due to a transfer of employees from the Resources Ministry, which no longer exists, to the environment and infrastructure ministries. This led to an increase in the number of those employed in public administration, the NSO noted.

The increase in public sector employment runs contrary to a government plan sent to Brussels last October in which it pledged to reduce posts by 500 this year as a deficit reduction measure.

The NSO had previously received harsh criticism from Prof. Scicluna.

Last October he had criticised its methodology adopted to measure inflation, saying it was wrong and had contributed to “ongoing misinformation” about the economy.

The following day he ordered a probe, this time regarding an error in the compilation of GDP figures.

The Nationalist Party issued a statement accusing the government of deceiving the people by blaming the rise in the public sector workforce on the reclassification of construction employees.

In reality, it said, the number of new workers on the State’s payroll since Labour was elected was more than 3,600, as some 1,500 workers had reached retirement age.

While expressing its solidarity with the NSO staff, the PN urged the government to respect the independence of this institution which had a crucial role in giving a clear picture of the country’s economy.

Rise in public sector from March 2013 to April 2014*

During the first 13 months of the Labour administration, the public sector increased by 2,042 employees, according to NSO figures. A main contributor was transport, with the creation of 765 jobs, including some 600 former Arriva drivers. Health and social work accounted for about 418 new jobs, followed by education with 297 jobs.

* Source: NSO