§ Mr. Deakinsasked the Secretary of State for Employment (1) what evidence he has that a reduction in the wages of low-paid workers relative to median earnings will increase the employment prospects in the relevant sectors of the economy;
(2) what evidence he has that a reduction in the real earnings of low-paid workers will increase the employment prospects in the relevant sectors of the economy.
§ Mr. Peter BottomleyThere is general evidence that suggests that a reduction in the cost of labour improves employment prospects. I refer the hon. Member to my reply to the hon. Member for Newham North East (Mr. Leighton) on 22 October 1984 at column481. There is also evidence that suggests that the employment prospects of certain groups which tend to have below average earnings, notably women and young people, would benefit from a reduction in real and/or relative earnings. I refer the hon. Member to my reply to him on 17 December 1984 at column 37 and my hon. Friend's reply to him on 14 January 1985 at column 32.