HC Deb 18 January 1994 vol 235 cc700-1
11. Sir Thomas Arnold

To ask the Secretary of State for Employment what is the latest unemployment figure; and if he will make a statement.

Mr. David Hunt

Two million seven hundred and sixty-six thousand two hundred—that is, 9.8 per cent. Last month's fall of 46,800 means that unemployment is 226,100 lower than it was in January 1993.

Sir Thomas Arnold

Is it not the case that the improvement in the figures is largely due to the fact that the job market is responding more quickly to the upturn in the economy because of more flexible labour relations?

Mr. Hunt

I could not agree more with my hon. Friend. There has been a transformation in industrial relations in this country. In 1979, industry lost 1,270 working days per 1,000 employees through disputes and strikes. By 1992, thanks to Conservative legislation, that number had fallen to 24. That is a significant development, and my hon. Friend is quite right to pay tribute to it.

Mr. Malcolm Bruce

Welcome as the reduction in unemployment is, does the Secretary of State accept that unemployment has fluctuated between 2 million and 3 million during the past 10 years? Will he look to the future and state when he thinks the figure will go below 2 million or 1 million? In the post-general agreement on tariffs and trade era and with the recovery of Germany and Japan and the rising nations of the Pacific rim, does he believe that this country has the skill base to compete and to ensure low unemployment and competitive trading conditions?

Mr. Hunt

First, may I thank the hon. Gentleman for doing what the Labour party did not do, which was to welcome the fall in unemployment.

The hon. Gentleman must recall that there has been an increase in jobs during the past 10 years, with an increase in the number of people in work of 1..4 million. Nevertheless, I accept that 2,766,200 is still an unacceptably high level of unemployment. I want to see that number brought down, and brought down permanently.

Therefore, I ask the hon. Gentleman and his party to oppose the Opposition policies of a minimum working wage, statutory works councils and compulsory working weeks which would only cost jobs. I urge him to join the Government in creating a new and modern apprenticeship scheme which will help to restore skills that are lacking at certain levels—particularly NVQ level 3.

Dame Elaine Kellett-Bowman

Does my right hon. Friend accept that the news that unemployment in Lancaster has fallen steeply compared with this time last year is welcome? The figure has fallen faster than either the national average or the regional average. Does my right hon. Friend also agree that if Commissioner Millan were to agree with the proposition made in the European Parliament by my noble Friend Lord Inglewood, that tourism should be declared an industry, we could do even better?

Mr. Hunt

I agree with my hon. Friend on the significance of tourism, not only as an employer but also as a contributor of substantial sums of money. I cannot give her what she is looking for in terms of categorisation, but I recognise the importance and the significance of tourism. I welcome with her the reduction in unemployment in the north-west.

Mr. Prescott

Does the Secretary of State accept that the reduction in the employment figures is due to the transformation of the labour market and that the loss of 3 million full-time jobs since 1979, and their replacement by 3 million part-time jobs has transformed the British labour force into a low-pay, low-skill skivvy labour force? Does the Secretary of State accept that that is no way for Britain to get economic prosperity?

Mr. Hunt

First, the hon. Gentleman got it wrong. We are talking about a fall in unemployment, and not employment as he said a few moments ago. There has been an increase in employment.

It is quite absurd for the hon. Gentleman to categorise the great success of this country as if it were just an increase in fast food jobs. We heard earlier a question regarding the fast food industry, because some Opposition Members have said that the rise in employment has come in the fast food industry. I do not know what those Opposition Members want. Do they want slow food, as they are in the slow lane of British politics? McDonalds? They are in the era of Ramsay MacDonald. Pizza Hut? They are still in a stone age hut. It is about time that the hon. Gentleman and his colleagues woke up to the modern world.