§ 45. Mr. Harveyasked the Secretary of State for Employment if he will make a statement comparing trends in unit labour costs in the United Kingdom with those of its main competitors.
§ Mr. Alan ClarkThe table shows how unit labour costs in manufacturing have moved in recent years in the United Kingdom and in three of our main competitors. It shows that the rate of increase in United Kingdom labour costs has declined substantially since 1980, but it also shows that in the latest two quarters for which figures are available our relative position appears to have deteriorated somewhat. This underlines the continuing need for lower pay settlements.
489W
Wages and salaries per unit of output in manufacturing‡ Percentage increase over the same period a year earlier United Kingdom United States Japan *Federal Republic of Germany Annual 1980 22 12 1 7 1981 10 7 4 5 1982 5 9 8 4 Quarterly 1982 Q1 4 11 6 4 Q2 6 10 7 1 Q3 5 9 8 4 Q4 6 5 12 5 1983 Q1 3 3 6 2 Q2 3 -1 2 1 Q3 3 -2 0 †-3 Source: OECD Main Economic Indicators (December 1983).
Notes: * Manufacturing and mining.
† Based on July and August only.
‡ Expressed in national currencies.