The labour market has changed dramatically under Labour, with public service jobs playing a much more crucial role in driving the economy, particularly in the Midlands and for women workers, a Financial Times investigation shows.

Alistair Darling, the chancellor, and Gordon Brown, the prime minister, correctly claim that the number of jobs created under Labour is equivalent to the number on the dole under the Conservatives. But up to two-thirds would be classified by most people as being in the public sector.