Unemployment Figures (Hansard, 14 March 1991)

§ The Parliamentary Under-Secretary of State, Department of Employment (Viscount Ullswater)
My Lords, in February 1991 seasonally adjusted unemployment in the United Kingdom was 1,977,200.

§ Lord Dormand of Easington
My Lords, is it not the case that it was announced today on the radio that the figure is over 2 million? Be that as it may, is the Minister aware that the figure for the unemployed that he has just given us is an affront to a decent civilised society? Will he confirm that there have now been 11 consecutive monthly increases in that total? Before we hear the usual fairy tale about how much better off we are in this country than in other countries, will the Minister say whether there is any truth in recent statements that the long-term unemployed are to be placed on temporary community work projects and that the half million people involved will be taken off the total of unemployed?

§ Viscount Ullswater
My Lords, the noble Lord may suggest that it is an affront to this country to have so many people unemployed, but as I believe I said to him this time last month, all increases in unemployment are regrettable. No one should underestimate the difficulties which unemployment can cause for the individuals concerned and their families. However, the latest set of figures does not change the fact that the United Kingdom still compares favourably as regards unemployment with the European Community. As to the long-term unemployed, this is the first time that the figure for the long term, with an increase of 17,000, has risen since January 1986. The noble Lord's other question is pure speculation.

§ Lord Mulley
My Lords, has the noble Viscount observed what can be described as an odd coincidence? For example, on television's Oracle it is seen that when there is a surge in unemployment there is also a surge in the Financial Times or the Stock Exchange index. I have observed that on many previous occasions. If this apparent conflicting coincidence cannot be explained, will the Government examine it to see what grounds there are for it?

§ Viscount Ullswater
My Lords, I believe that the City has anticipated what will happen next. That 286 means that they have confidence in this Government. Inflation is now falling, interest rates will fall and on the back of that new jobs will be created.

§ Lord Stallard
My Lords, did the noble Viscount read the result of a recent survey carried out by the Amalgamated Engineering Union? It was to the effect that between 1st January and 14th February this year 33,600 manufacturing jobs were lost. That is a rate of 1,000 for every working day, and is continuing. Does he recall that when we questioned his predecessor, the noble Lord, Lord Young, we were told that these were unreal jobs which would be replaced by real jobs? Does the noble Viscount still say that these are in the category of unreal jobs?

§ Viscount Ullswater
My Lords, employment is now 11/2 million more than in 1979. Those jobs which have been lost in manufacturing industry do not counter the fact that manufacturing output is much higher than it was then. Manufacturing employment peaked as far back as 1966. The decline reflects structural change in the modern economy as the service industry has grown. In recent years some jobs previously carried out in manufacturing have been subcontracted to the service industries.

§ Lord Harmar-Nicholls
My Lords, does my noble friend recognise how the first two supplementary questions from the Opposition answered each other? If it is an affront to society, it is an affront to society all over the world because the world is in recession. Is not the Stock Exchange giving an indication that in its view there is less reason to feel affronted in this country than in most others?

§ Viscount Ullswater
My Lords, my noble friend has repeated a great deal of what I said in answer to the first two supplementary questions.

Lord Bruce of Donington
My Lords, is the noble Viscount aware that the figures provided by him today understate the true number of people employed by approximately 1 million? That has been confirmed by a working party established by the Bank of England. Is he aware that the real figure for the unemployed in the country at the moment is nearer 3 million?

§ Viscount Ullswater
My Lords, the answer is no. The consistent seasonally adjusted unemployment series gives a comparable assessment of trends over time. The Government have nothing to hide on that.

§ Lord Rochester
My Lords, whatever the true figures may be, do not those released today accentuate the need for the Government to consider introducing special measures to alleviate the plight particularly of young people for whom no work is available?

§ Viscount Ullswater
My Lords, on a previous occasion I explained to the noble Lord that the Government have a large training programme both for those who have been out of work for some time and for our young people. Even today, the Department of Employment has issued a new guide to assist those people to find work who are now unemployed.

§ The Earl of Onslow
My Lords, am I right that when the unemployment figures start to fall, the noble Lord. Lord Dormand of Easington, will not ask his monthly Question?

§ Viscount Ullswater
My Lords, I hope it will not be long before we find out.

§ Lord Stoddart of Swindon
My Lords, the noble Viscount mentioned that unemployment figures in this country are lower than in the EC. Is he aware that this country alone within the EC has, over the past 10 years, had a £100 billion bonus from North Sea oil? Investment in British manufacturing industry was mentioned by the Select Committee on Science and Technology under the chairmanship of the noble Viscount, Lord Caldecote. Had that money been invested in British manufacturing industry and on unemployment in this country instead of being squandered abroad, our manufacturing industry would be much stronger and unemployment would be much lower. Is that not the case?

§ Viscount Ullswater
My Lords, we are straying a long way from the Question on the Order Paper. Investment rose to a record level in 1990. Investment in manufacturing industry increased.

§ Baroness Turner of Camden
My Lords, is the Minister aware that the figure for unemployed males is disproportionately high? In many areas male unemployment is very high. In certain areas of Glasgow, for example, it is as high as 26 per cent. In Liverpool it is 33 per cent. Even in certain areas of London—for example, Hackney—it is about 16 per cent. The overall figures are reduced because of a much lower figure for female unemployment. However, that is largely due to a proliferation of part-time jobs. Will the Minister comment on those figures as the male unemployment levels reflect a pretty dire situation?

§ Viscount Ullswater
My Lords, one must go back a little in time to consider this matter. Previously the figure for female employment was much lower than it is at the moment. There has been an increase in the available number of part-time jobs.

§ Lord Dormand of Easington
My Lords, is the Minister aware that since this Administration came to power the method of assessing unemployment statistics has been changed no fewer than 30 times? Will the Minister say whether the figures would have been greater or smaller on each of those occasions? The noble Earl, Lord Onslow, asked me when I would stop asking the Government about unemployment. I shall do so when unemployment reaches the level that it was when the Labour Government left office; that is, 1.3 million.

§ Viscount Ullswater
My Lords, I believe I have answered the noble Lord. The consistent seasonally adjusted unemployment series gives a trend in unemployment. That has been consistent throughout the period the noble Lord referred to.