The number of people employed by the Government increased by 11,200, or 5 per cent, in the 12 months to March, 2002, while average weekly earnings in the sector increased by 7.1 per cent, according to the latest data from the Central Statistics Office.

Staffing levels in all areas of the public sector increased with the exception of the Defence Forces. There was a 6.7 per cent jump in staffing levels in education with 78,400 now employed in that area compared to 73,500 in March, 2001.

While a full set of figures for weekly earnings in the private sector is not yet available for the year to March, earlier this month the CSO said weekly earnings in the distribution and businesses services sector increased by 2.8 per cent in the period, well below the public sector increase.

Average weekly earnings in the public sector were €700, up 7.1 per cent from €654, 12 months previously. In the private distribution services sector weekly earnings were €553, up by 2.8 per cent from €538, 12 months earlier. The latest public sector data on both earnings and employment levels excludes the health sector for which data is not yet available.

Mr Kevin Crowley, an economist with the Bank of Ireland, said the latest jump in wages and the numbers employed will not have a significant adverse impact on planned Government spending as the increases would have already been factored in.

However, he added the greater number of staff now employed in the public sector undermines the argument that wage increases in the public sector are necessary to attract workers and retain them once they have been hired. The problem faced by the public sector in retaining staff was one of the reasons behind the recently concluded benchmarking review which could add more than €1 billion to the Government wage bill.

"It would seem with these results that that argument simply doesn't hold water. What is clear is that the public sector has proven very capable of recruiting people as it has in recent years," he said.

In total, 231,600 people were employed either directly or indirectly by the Government, excluding health workers, in March, 2002, compared with 220,400 12 months earlier. In the Civil Service staffing levels increased from 34,900 to 37,200. Garda staffing levels increased by just 100 to 11,700. In regional bodies 35,700 were employed in March, up from 33,600, and in semi-state companies numbers rose from 55,300 to 57,000. In the Defence Forces numbers dropped by 100 to 11,600.

As expected gardaí and prison officers earned the most because of the high levels of overtime available. On average prison officers earned €1,105, up by €85 per week on 12 months earlier. When overtime is stripped out, the prison officers earned an average of €734 per week, up from €682. Gardaí on average earned €929 per week, up almost €40 on a year earlier. When overtime is excluded, gardaí earned €807, up from €752.

In the Defence Forces average weekly earnings were €583, up €53. Primary school teachers were paid €779 per week, up €48, while in second level and third level - excluding VECs and ITs - the weekly rate was €750 (up €11) and €735 (up €76) respectively.