§ 36. Mr. Rankinasked the Chancellor of the Exchequer what estimate he has made of the saving to the economy resulting from the fall in unemployment over the past month; and to what extent this has been offset by the rise in prices during the same period.
§ Mr. NottIt is impossible to make an accurate estimate of the additional output376W that results from a fall in unemployment such as occurred between February and March. However, if it is assumed that the productivity of those who are additionally employed is equal to the average of those already in employment, a reasonable estimate might be about £45 million at constant 1963 prices in a full year. As this estimate is already in resource terms, a further adjustment for inflation is not required. Nevertheless it should be stressed that inflation is the biggest single threat to a sustained expansion of the economy and our future prosperity.