HC Deb 14 March 1989 vol 149 cc271-4
3. Mr. Speed

To ask the Secretary of State for Employment by how much unemployment has fallen over the past year in the south-east; and if he will make a statement.

Mr. Fowler

In the 12 months to January 1989, the level of unemployment, seasonally adjusted, in the south-east including London fell by 157,400 or 27.9 per cent. Unemployment in the south-east is now at its lowest level for eight years.

Mr. Speed

I welcome those figures, and my right hon. Friend confirms that the labour force survey showed that employment in the region rose by 800,000 up to June last year, more than offsetting the fall of 400,000 or 500,000 in the claimant count. Is not the real problem now to find the skills for the 150,000 vacancies in the south-east?

Mr. Fowler

Yes, Sir. The labour force survey shows a real growth in employment. In the past 12 months, there has been an increase of more than 600,000 in the number of employees. As my hon. Friend says, we now need to improve the nation's skills base. That is why we have introduced the employment training programme and are in the process of setting up the new training and enterprise councils.

Ms. Short

rose

Mr. Speaker

Order. Is it about the south-east?

Ms. Short

Yes, Mr. Speaker.

Will the Secretary of State confirm that in the south-east and elsewhere the labour force survey and other evidence show that the new jobs being created in Britain are overwhelmingly low paid and part time, which is a real worry for the future of our economy? There is no future for Britain in low pay, low investment, low training and a slow economy, but those jobs mean that that is the road that we are on.

Mr. Fowler

Uncharacteristically, the hon. Lady has apparently not read the labour force survey. One point that emerges clearly from the survey is that the overwhelming number of jobs that have been created in the past 12 months are not part-time, but full-time. The fact that 86 per cent. of those jobs were full-time entirely demolishes the hon. Lady's case.

4. Mr. Yeo

To ask the Secretary of State for Employment what is the rate of fall in unemployment in the United Kingdom and in other developed countries; and if he will make a statement.

Mr. Fowler

Over the past year, the rate of unemployment has fallen faster in the United Kingdom than in any other major industrialised country. The rate of unemployment in the United Kingdom is below the average for the European Community and now stands below that of France, Italy, Belgium, the Netherlands, Spain and Ireland.

Mr. Yeo

Does my right hon. Friend agree that the Government's step by step approach to the reform of industrial relations has made a significant contribution towards reducing unemployment? In the light of that, will he undertake to introduce further measures of industrial relations reform, including the abolition of what remains of the closed shop, so as to achieve a further reduction in unemployment?

Mr. Fowler

I entirely agree with my hon. Friend that bad industrial relations, particularly in the middle and late 1970s exported many British jobs overseas. The closed shop puts unacceptable limits on people's freedom to choose for themselves whether or not to belong to a trade union. I made the position clear in the White Paper that I published before Christmas, and I repeat that we shall not hesitate to take any further legislative measures that may be necessary.

Mr. Wigley

Does the Secretary of State accept that whereas the rate of decrease may be acceptable in south-east England, where the rate of unemployment is 2 or 3 per cent. in many of the home counties, in Wales and elsewhere in these islands, where unemployment is running at between 15 and 20 per cent., it is totally unacceptable? When will he take an initiative to do something about that?

Mr. Fowler

I hope that the hon. Gentleman will agree that, after the west midlands, Wales is one part of the country where the rate of unemployment has come down most steeply. We shall do all that we can to improve on that. I hope, however, that the hon. Gentleman will concede what has been done already.

Mr. Holt

Unemployment in my constituency has fallen from its peak by 40 per cent. and stands today at lower than the national average. Is my right hon. Friend aware that the Teesside chamber of commerce has just put out a press release which says that the Teesside economy continues to boom and shows that more than 28 per cent. of the firms on Teesside expect to be employing more labour in the next three months?

Mr. Fowler

I am sure that what my hon. Friend says is right. The Prime Minister and I were in the north-east on Friday, as my hon. Friend knows, and there was no doubting the new confidence that exists there. It is important for the House to appreciate that in the past two years this country has shown the fastest employment growth since 1945.

Mr. Meacher

Is the Secretary of State really crowing at the fact that unemployment is still twice as high as it was in 1979? How does he explain the fact that 40 per cent. of the money that the EEC is paying to member states this year to arrest industrial decline and job losses is coming to Britain—twice as much as to any other EEC state? Will he admit that he has been telling only half the story about the labour force survey in that employment has been growing in the last year at only half the rate at which it grew the year before and that 110,000 more people were knocked off benefit than went into jobs?

Mr. Fowler

The hon. Gentleman is becoming more and more muddled. The labour force survey reveals that for months past the hon. Gentleman has been fiddling the figures upwards. The House expects him to do the honourable thing and give up his job.

5. Mr. Butler

To ask the Secretary of State for Employment if he will make a statement on the number of people currently in employment in the north-west of England.

The Parliamentary Under-Secretary of State for Employment (Mr. John Lee)

In September 1988, in the north-west region, the civilian work force in employment was 2,661,000—an increase of 80,000 or 3 per cent. in the past two years.

Mr. Butler

Does my hon. Friend agree that employment seems to have risen in those areas of the north-west where the work force is co-operative and skilled, in contrast with other areas of the north-west where the unions are bloody-minded and Luddite?

Mr. Lee

I think that my hon. Friend is getting at the situation on Merseyside. I have no wish to denigrate the work force on Merseyside, but in many cases they are being let down by some very extreme shop stewards.

Mr. James Lamond

Why does not the Minister, who knows something about the north-west, tell the Secretary of State that he is talking nonsense when he says that jobs are being exported because of trade union activity? The textile workers are struggling to obtain a £100 basic wage for a 39-hour week, while closures in the north-west are taking thousands of jobs, including 250 in Oldham just a fortnight ago.

Mr. Lee

It is true that there have been some textile losses recently. but in the past three or four years the textile industry has improved dramatically. Indeed, it was a shade churlish of the hon. Gentleman not to acknowledge that in the past two years unemployment has fallen by 31 per cent. in his own constituency.

Mr. Sumberg

Does my hon. Friend agree that if there is a north-south divide, it is to the advantage of the north-west? Opposition Members who spend their time doing the region down should open their eyes and ears and acknowledge the fact that Lancashire's best friend is the Government.

Mr. Lee

My hon. Friend is absolutely right. The Opposition do the north-west a disservice by failing to acknowledge the buoyancy, optimism and pride that most people in the region now have.

Mr. Tony Lloyd

While the Opposition welcome every job that is created, we deplore the fact that there are still record unemployment rates. If the Minister is so confident about the north-west in particular and the north of England in general, will he say why—according to the labour force survey—the rate of increase in jobs in the south-east over the past five years has been more than 10 per cent. while in the north-west it has been less than 1 per cent.? That illustrates the north-south divide.

Mr. Lee

Why will the hon. Gentleman not acknowledge that in his own constituency unemployment has fallen by 30 per cent. in the past two years?

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