§ 40. Mr. Tim SmithTo ask the Secretary of State for Employment what has been the effect of changes in unit labour costs in manufacturing over the last year on employment.
§ Mr. LeeOver the last year average earnings in manufacturing have risen by about 9¼ per cent., but the 5½ per cent. increase in productivity has kept the increase in unit wage costs over the period to May 1989 down to 3 per cent. In the year to May 1989, employees in employment in manufacturing fell by 37,000.
There are many factors that affect employment over a short period of time and it is not possible to give an estimate of the effects of unit wage costs. However, if manufacturing in this country is to remain competitive it is vital that industry keeps unit wage costs under control.