Manufacturing Industry (Hansard, 18 December 1979)

§ Mr. Austin Mitchell
asked the Secretary of State for Employment whether he will circulate in the Official Report a table showing for each year since 1970 and for the latest quarter (a) employers' national insurance contributions as a percentage of manufacturing labour costs, (b) average weekly earnings in manufacturing as a percentage of their level in 1970 and (c) unit labour costs in manufacturing as a percentage of their level in 1970.

§ Mr. Jim Lester
The following table gives indices of average earnings and unit labour costs in all manufacturing industries with the year 1970 = 100.

MANUFACTURING INDUSTRIES

Index of average earnings—all employees—Great Britain—seasonally adjusted Index of labour costs per unit of output—United Kingdom^*

1971 … 111.2† 109.9

1972 … 125.5‡ 115.0

1973 … 141.6 121.6

1974 … 165.9 151.1

1975 … 209.2 197.8

1976 … 243.7 226.3

1977 … 268.8 253.8

1978 … 308.1 288.0

1979: …

First quarter … 334.0 Not available

Second quarter … 352.6

Third quarter … 356.1§

^* Based on census of production.

†As industrial activity was severely disrupted by restricted electricity supplies, the monthly survey on which these figures are based was not carried out in February 1972. This figure is an average of the 11 months excluding February.

‡This figure reflects temporary reductions in earnings while three-day working and other restrictions were in operation in January and February.

§The figures reflect abnormally low earnings due to the effects of the national dispute in the engineering industries.

Estimates of employers' national insurance contributions as a percentage of manufacturing labour costs are available from the 1973 and 1975 surveys of labour costs. These indicate that employers' statutory national insurance contributions made up about 5 per cent. of total labour costs in manufacturing industries in Great Britain in 1973 and about 6½per cent. in 1975. Taking account of the national insurance surcharges made in 1977 and 140W 1978, the current figure is probably just over 10 per cent.

§ Mr. Austin Mitchell
asked the Secretary of State for Employment if he will publish in the Official Report a table showing (a) unit labour costs in manufacturing in the principal industrial countries in terms of dollars and as a percentage of their level in 1970 and (b) earnings in manufacturing in dollar terms as a percentage of their level in 1970.

§ Mr. Jim Lester
A general measure of the absolute level of unit labour costs is not available. However, trends in unit labour costs can be measured by use of index numbers. The available figures for principal industrial countries are given in the following table both in terms of national currencies and adjusted for relative movements in exchange rates against the dollar.

WAGES AND SALARIES PER UNIT OF OUTPUT IN MANUFACTURING SECOND QUARTER 1979^* AS A PERCENTAGE OF 1970 LEVEL BASED ON:

(i) (ii)

National currencies US dollars

United Kingdom … 297 248

Germany (FR)† … 149 296

Japan‡ … 193 377

United States … 155 155

^* Seasonally adjusted

†Including mining

‡Whole economy

Source: OECD—Main Economic Indicators.
The figure requested in part (b) was 295 in the second quarter of 1979. This estimate for Great Britain, is derived from the monthly index of average earnings (older series) for manual and non-manual employees in manufacturing industries, adjusted for the change in the exchange rate against the dollar.

§ Mr. Austin Mitchell
asked the Secretary of State for Employment if he will publish in the Official Report a table showing for the United Kingdom for each year since 1967 and for the latest quarter (a) weekly earnings in manufacturing and the whole economy as a percentage of their levels in 1967 and the increase on the preceding year and (b) unit labour costs in manufacturing and the whole economy as a percentage of their levels in 1967 and the increase on the preceding year.

§ Mr. Jim Lester
The following table gives the available information:
141W

Labour costs per unit of output—United Kingdom Average earnings—Great Britainf

Manufacturing^* Whole economy Manufacturing All industries and services covered

Index 1967=100 Percentage increase on a year earlier Index 1967=100 Percentage increase on a year earlier Index 1967=100 Percentage increase on a year earlier Index 1967=100 Percentage increase on a year earlier

1968 … … 100.0 0.0 102.4 2.4 108.2 8.2 107.8 7.8

1969 … … 106.7 6.7 106.4 3.9 117.0 8.1 116.3 7.8

1970 … … 120.5 12.9 116.9 9.9 131.9 12.7 130.4 12.1

1971 … … 132.4 9.9 127.4 9.0 146.6 11.2 145.1 11.3

1972 … … 138.5 4.6 138.7 8.9 165.5§ 12.8 163.8§ 12.9

1973 … … 146.5 5.7 148.5 7.1 186.8 12.9 185.9 13.5

1974 … … 182.1 24.3 183.2 23.4 218.8 17.2 218.9 17.8

1975 … … 238.3 30.9 237.4 29.6 275.9 26.1 276.9 26.5

1976 … … 272.6 14.4 262.9 10.7 321.4 16.5 320.0 15.6

1977 … … 305.8 12.2 288.7 9.8 354.5 10.3 352.6 10.2

1978 … … 346.9 13.4 322.1 11.6 406.3 14.6 403.6 14.4

1979 Q1 not available 348.9‡ 11.9‡ 440.4 14.7 435.7 14.7

Q2 359.8‡ 13.4‡ 465.0 15.4 459.5 14.7

Q3 not yet available 469.6¶ 13.9¶ 471.2¶ 14.8¶

^*Based on census of production.

†From the monthly index of average earnings. Until 1976 the industries and services covered by the earnings inquiry were all manufacturing industries, agriculture, mining and quarrying, construction, gas, electricity and water, transport (except sea transport) and some miscellaneous services and these are the industries to which the figures in the table relate. In 1976 the inquiry was extended to cover the whole economy. Indices (1976=100) and percentage increases for the whole economy (not seasonally adjusted) have been as follows:

Index Percentage increase on a year earlier

1977 … … 109.1 9.1

1978 … … 123.2 13.0

1979 Q1 … … 132.2 13.9

Q2 … … 139.0 13.4

Q3 … … 145.4¶ 15.7¶

‡Seasonally adjusted.

§As industrial activity was severely disrupted by restricted electricity supplies, the monthly survey was not carried out in February 1972. This figure is an average of the 11 months excluding February.

|| These figures and the increases based on them reflect the effects of temporary reductions in earnings while three-day working and other restrictions were in operation in January and February.

¶The figures reflect abnormally low earnings due to the effects of the national dispute in the engineering industries.

142W

	MANUFACTURING INDUSTRIES
		Index of average earnings—all employees—Great Britain—seasonally adjusted	Index of labour costs per unit of output—United Kingdom^*
1971	…	111.2†	109.9
1972	…	125.5‡	115.0
1973	…	141.6	121.6
1974	…	165.9	151.1
1975	…	209.2	197.8
1976	…	243.7	226.3
1977	…	268.8	253.8
1978	…	308.1	288.0
1979:	…
First quarter	…	334.0	Not available
Second quarter	…	352.6
Third quarter	…	356.1§
^* Based on census of production.
†As industrial activity was severely disrupted by restricted electricity supplies, the monthly survey on which these figures are based was not carried out in February 1972. This figure is an average of the 11 months excluding February.
‡This figure reflects temporary reductions in earnings while three-day working and other restrictions were in operation in January and February.
§The figures reflect abnormally low earnings due to the effects of the national dispute in the engineering industries.

WAGES AND SALARIES PER UNIT OF OUTPUT IN MANUFACTURING SECOND QUARTER 1979^* AS A PERCENTAGE OF 1970 LEVEL BASED ON:
		(i)	(ii)
		National currencies	US dollars
United Kingdom	…	297	248
Germany (FR)†	…	149	296
Japan‡	…	193	377
United States	…	155	155
^* Seasonally adjusted
†Including mining
‡Whole economy

			Labour costs per unit of output—United Kingdom	Average earnings—Great Britainf
			Manufacturing^*	Whole economy	Manufacturing	All industries and services covered
			Index 1967=100	Percentage increase on a year earlier	Index 1967=100	Percentage increase on a year earlier	Index 1967=100	Percentage increase on a year earlier	Index 1967=100	Percentage increase on a year earlier
1968	…	…	100.0	0.0	102.4	2.4	108.2	8.2	107.8	7.8
1969	…	…	106.7	6.7	106.4	3.9	117.0	8.1	116.3	7.8
1970	…	…	120.5	12.9	116.9	9.9	131.9	12.7	130.4	12.1
1971	…	…	132.4	9.9	127.4	9.0	146.6	11.2	145.1	11.3
1972	…	…	138.5	4.6	138.7	8.9	165.5§	12.8	163.8§	12.9
1973	…	…	146.5	5.7	148.5	7.1	186.8	12.9	185.9	13.5
1974	…	…	182.1	24.3	183.2	23.4	218.8	17.2	218.9	17.8
1975	…	…	238.3	30.9	237.4	29.6	275.9	26.1	276.9	26.5
1976	…	…	272.6	14.4	262.9	10.7	321.4	16.5	320.0	15.6
1977	…	…	305.8	12.2	288.7	9.8	354.5	10.3	352.6	10.2
1978	…	…	346.9	13.4	322.1	11.6	406.3	14.6	403.6	14.4
1979 Q1			not available		348.9‡	11.9‡	440.4	14.7	435.7	14.7
Q2				359.8‡	13.4‡	465.0	15.4	459.5	14.7
Q3				not yet available		469.6¶	13.9¶	471.2¶	14.8¶
^*Based on census of production.
†From the monthly index of average earnings. Until 1976 the industries and services covered by the earnings inquiry were all manufacturing industries, agriculture, mining and quarrying, construction, gas, electricity and water, transport (except sea transport) and some miscellaneous services and these are the industries to which the figures in the table relate. In 1976 the inquiry was extended to cover the whole economy. Indices (1976=100) and percentage increases for the whole economy (not seasonally adjusted) have been as follows:

			Index	Percentage increase on a year earlier
1977	…	…	109.1	9.1
1978	…	…	123.2	13.0
1979 Q1	…	…	132.2	13.9
Q2	…	…	139.0	13.4
Q3	…	…	145.4¶	15.7¶
‡Seasonally adjusted.
§As industrial activity was severely disrupted by restricted electricity supplies, the monthly survey was not carried out in February 1972. This figure is an average of the 11 months excluding February.
\|\| These figures and the increases based on them reflect the effects of temporary reductions in earnings while three-day working and other restrictions were in operation in January and February.
¶The figures reflect abnormally low earnings due to the effects of the national dispute in the engineering industries.