§ Mr. Nelsonasked the Chancellor of the Exchequer what was the rise in labour costs in proportion to the rise in value added in manufacturing industry for the periods 1968 to 1973, 1973 to 1978 and 1978 to 1980 for the United Kingdom, France, the Federal Republic of Germany, Italy, the Netherlands, the United States of America and Japan, respectively; and what was the net movement in the value of their currencies during each period.
§ Mr. BrittanThe latest available information is given in the following table. Changes in labour costs are derived from income from employment data comprising wages and salaries and employers' contributions to social security and private pension schemes. Value added is the contribution made by manufacturing industry to total domestic income after deducting stock appreciation and depreciation. In order to give an indication of the change in the value of currencies two price indices are shown—the consumer price index and the GDP deflator or implied index of home costs.
95W
Percentages United Kingdom France * West Germany † Italy †Netherlands USA Japan Manufacturing industry Share of labour costs in value added 1968 77 na 70 na na 78 na 1970 81 na 73 na 68 83 50 1973 78 na 79 69 66 80 59 1978 83 na ‡79 ‡70 65 79 66 Percentage increase in labour costs 1968–73 +66 na +87 na na +39 na 1970–73 +34 na +38 na +39 +27 +68 1973–78 +120 na ‡+29 ‡+139 +46 +59 +77 Percentage increase in value added 1968–73 +65 na +61 na na +35 na 1970–73 +38 na +23 na +43 +32 +44 1973–78 +107 na ‡+28 ‡+133 +49 +62 +57 Movements in prices Percentage increase in consumer prices index§ 1968–73 +43 +35 +25 +32 +39 +28 +40 1970–73 +28 +20 +19 +23 +25 +15 +24 1973–78 +111 +66 +26 +114 +46 +47 +71 Percentage increase in "gdp deflator"║ 1968–73 +43 +36 +34 +41 +45 +28 +35 1970–73 +27 +21 +20 +27 +29 +16 +22 1973–78 +111 +66 +27 +123 +48 +43 +51 Notes * Manufacturing industry includes quarrying but excludes publishing. † Manufacturing industry includes mining and quarrying. ‡ 1973–1977 § Equivalent to the United Kingdom General index of retail prices—all items. ║ Derived from estimates of gross domestic product at current and constant market prices. Sources:
Value added and income from employment:—
United Kingdom: National Income and Expenditure 1980 Edition.
Other countries: UN Yearbook of National Accounts Statistics.
Movements in prices—
National Accounts ESA—Aggregates 1960–1979.
International Financial Statistics.