§ Mr. John MarshallTo ask the Secretary of State for Employment if he will make a statement about the trend of earnings.
§ Mr. NichollsThe underlying trend in the growth of average earnings over the economy as a whole increased last autumn, since when it has been running at 8½ per cent. a year. This follows a period of over four years at about 7½ per cent. Part of this increase is due to the buoyant economy but many basic pay settlements are also too high. Settlements that are not justified by the needs of the enterprise concerned raise costs unnecessarily and are bad for jobs. They discourage recruitment and hold back further output, investment and improved competitiveness on which the growth of employment depends.