HC Deb 08 March 1978 vol 945 cc683-4W
Mr. Lawson

asked the Chancellor of the Exchequer what is the explanation of the difference between the increase of 1–4 per cent, in output per head of occupied population in the United Kingdom between 1973 and 1976, given in the Written Answer to the hon. Member for Blaby on 27th February 1978 and the decrease of 1.2 per cent, in output per person employed in the United Kingdom between 1973 and 1976 given in the Written Answer to the hon. Member for Blaby on 13th June 1977; which is a better measure of the true trend of productivity over the period; and why.

Mr. Denzil Davies

, pursuant to his reply [Official Report, 6th March 1978], gave the following information:

The difference between the two figures is that the percentage change in output per head of occupied population in the United Kingdom given in the international comparisons shown in the Written Answer to the hon. Member on 27th February 1978 was based on estimates produced by the Statistical Office of the European Communities (SOEC) using gross domestic product measured by expenditure at constant 1970 market prices and at constant 1970 exchange rates, whereas the percentage change in output per person employed in the United Kingdom given in the Written Answer on 13th June 1977 was based on gross domestic product measured by output at constant 1970 prices. The difference between data given by SOEC and that used for the United Kingdom alone reflects the difference between the expenditure and output measures of gross domestic product and, to a lesser extent, the availability of later information.

There is no preferred definition of output per person employed, but within the United Kingdom it is the convention to base estimates of output per head on gross domestic product measured by output (gdp(o)). Various international organisations—for example, SOEC, OECD and ILO—publish differently defined data on which estimates of productivity can be based, and which relate to different groups of countries. It is the practice to select the source which most conveniently permits identification of comparable data for the countries and time periods to which the Question relates.

Taking into account the output and expenditure-based estimates, the best assessment of the trend of productivity in the United Kingdom over the period 1973 to 1976 is that it had changed little.