§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what is his estimate of the number of new jobs which would be created each year if real wages remained unchanged; what proportion of the additional jobs would be (a) in manufacturing and (b) in low paid no-tech 377W services; and what effect this would have on interest rates, the exchange rate and the public sector borrowing requirement.
§ Mr. Peter ReesMy right hon. Friend has already given estimates of the scale of the increase in employment that would result, over a period of years, if real wages had been held constant between 1981 and 1984 — on 30 October at column 1184—it is likely that the additional jobs would be spread throughout the economy. Within the monetary and fiscal framework set out in the MTFS lower real wage growth, brought about by slower growth in money wages, would also give lower interest rates, improved international competitiveness and scope for lower taxes.