§ Sir C. Osborneasked the President of the Board of Trade if he is aware that the number of people employed in distribution, finance, professional and miscellaneous groups has increased from 6,576,000 in 1949 to 8,299,000 in 1960; since this is a primary cause of the relatively slow growth of industrial production and a cause of high prices, if he will establish a committee to investigate and report how far this is retarding the United Kingdom's exports; and if he will make a statement.
§ Mr. MaudlingBetween the end of 1949 and the end of 1960 the numbers employed in the distributive trades and the financial, professional, scientific and miscellaneous services in Great Britain rose from 6,693,000 to 8,299,000. Of the total increase of 1,606,000, 740,000 results from a change in statistical definition. The true increase, using 1949 definitions for comparability, is therefore 866,000.
The bulk of the increase was in the number employed in the distributive trades, but it did no more than offset the fall in numbers employed during the war. At the end of 1960 a smaller proportion of the total working population was employed in the distributive trades than in 1938. The rise in the numbers employed in the other groups mentioned reflects both the desire of the consumer to spend a larger part of his growing income on services rather than on goods, and a greater use by industry of these services in our modern complex economy. There is evidence that productivity in the service trades has increased very substantially in recent years.
The proportion of the working population engaged in manufacturing industry is, on comparable definitions, higher now than it was before the war.
247WI do not consider that there is anything unhealthy in this situation or that it has any adverse effect on industrial production or the level of prices. I therefore see no need for any special inquiry.