public sector

Syllable breakdown

Dictionary meaning

the part of the national economy and employment that is owned, funded, and operated by government — including central government ministries, state-owned enterprises, public utilities, national health services, public educational institutions, military and police forces, and local government bodies — as distinguished from the private sector, which is owned and operated by private individuals and corporations, and the voluntary or third sector, operated by non-profit organisations; the size, scope, and role of the public sector is a central question in political economy and policy, ranging from extensive public ownership and provision in social democratic welfare states to minimal state involvement in laissez-faire liberal economies; the appropriate boundaries of the public sector have been contested through waves of privatisation and public enterprise creation, and are shaped by assessments of market failure, equity, national security, and the political values of governments

Examples

• Public sector employment in Nordic countries accounts for a much larger share of the workforce than in the United States.
• The privatisation wave of the 1980s and 1990s reduced the public sector's share of economic activity in many OECD countries.