Public Sector Law and Legal Definition

The public sector is the part of an economy in which goods and services are produced and/or (re)distributed by government agencies. Examples are state educational systems and unemployment insurance. Civil servants working for government entities are public sector employees, whereas those employed by private employers not affiliated with government are private sector employees.

Sometimes the private sector works in coordination with the public sector. By partnering with the private sector through arrangements which leverage governmental assets and resources, opportunities are provided for the privates sector to participate in the development, financing, ownership and operation of a public facility or service. For example, a public/private partnership could be an arrangement whereby a contractor or third party develops and operates a system which is beneficial to a government agency and others and charges the cost of the service to users.