HC Deb 20 May 1986 vol 98 c174
15. Mr. Teddy Taylor

asked the Paymaster General when he expects that demographic factors will have a favourable impact on the level of unemployment; and if he will make a statement.

Mr. Kenneth Clarke

Our policies have contributed to the creation of nearly a million additional jobs between March 1983 and December 1985. This success has yet to be translated into a fall in unemployment, largely because of the rapid increase in the population of working age. The population of working age is projected to continue increasing, although at a slower rate, until 1989. Between 1989 and 1994 it should fall slightly.

Mr. Taylor

Has not the substantial increase in the number of school leavers and the small number of retirals contributed several hundred thousand unemployed to the additional unemployment? What net improvement will there be next year compared with the position three years ago, which was worse?

Mr. Clarke

It is always notoriously difficult to predict these changes. The best measure of where we are going is provided by the 985,000 net additional jobs created since March 1983. As the answer to my hon. Friend's question reveals, if we continue expanding the economy at that rate, we shall certainly get on top of the unemployment problem between now and the end of the decade.