OUTPUT PER PERSON: STATISTICS (Hansard, 11 February 1993)

§ Lord Kennet
asked Her Majesty's Government:
What, over the past 15 years, has been the percentage increase in the overall output per person employed in the British workforce; and
What, over the last 15 years, has been the percentage increase in the overall output per person in the total British workforce (i.e. those in employment and those seeking employment).

§ The Parliamentary Under-Secretary of State, Department of Employment (Viscount Ullswater)
Between the third quarter of 1977 and the third quarter of 1992, the latest period for which figures are available, output per person employed in the whole economy increased by 30 per cent.
In the same 15-year period, the percentage increase in the overall output per person based on those in employment and those seeking employment, was 23 per cent.

§ Lord Kennet
asked Her Majesty's Government:
What has been the relationship over time between unemployment and the output figures for the employed.

§ Viscount Ullswater
The level of unemployment and output per head figures for the whole economy since 1978 are given below:

Year Claimant unemployed (millions) Output per head (index base = 1985)

1978 1.144 87.3

1979 1.074 88.4

1980 1.364 87.3

1981 2.172 89.4

1982 2.545 92.8

1983 2.788 96.9

1984 2.916 97.3

1985 3.028 100.0

1986 3.098 103.7

1987 2.807 106.6

1988 2.275 107.9

1989 1.784 107.6

1990 1.663 107.5

1991 2.287 107.9

¹1992 2.217 109.8

¹ Up to Q3.

The figures show no consistent pattern in the relationship between the level of unemployment and output per head.

§ Lord Kennet
asked Her Majesty's Government:
How does the rise in expenditure on unemployment benefit and other expenditures deriving from unemployment relate to the rise or fall in output per person.
52WA

§ Viscount Ullswater
The latest available firm figures on expenditure attributable to the unemployed from the Department of Social Security are for the financial year 1989–90. On 11th February 1993 the DSS will publish in its 1993 Report the outturn figures for 1990–91 and 1991–92.
A comparison of the output per person with expenditures on unemployment benefit and other expenditures deriving from unemployment is given in the following table for the most recent years for which figures are available:

Financial Year Total Unemployment Benefit Expenditure (£ millions) Employment Department Expenditure on Help for the Unemployed (£ millions) Output per person (index base = 1985)

1984–85 6,319 971 97.4

1985–86 6,963 1,018 100.7

1986–87 7,308 1,547 104.7

1987–88 6,647 1,567 107.2

1988–89 5,235 1,095 107.9

1989–90 4,309 ¹349 107.6

1990–91 — 380 107.3

1991–92 — ²506 108.5

The figures show no consistent relationship between 1984–85 and 1989–90.

¹ Reflects reclassification of part of the expenditure aimed at helping the unemployed to the training budget under the skills and competence for work programme.

² Estimated outturn.

Year	Claimant unemployed (millions)	Output per head (index base = 1985)
1978	1.144	87.3
1979	1.074	88.4
1980	1.364	87.3
1981	2.172	89.4
1982	2.545	92.8
1983	2.788	96.9
1984	2.916	97.3
1985	3.028	100.0
1986	3.098	103.7
1987	2.807	106.6
1988	2.275	107.9
1989	1.784	107.6
1990	1.663	107.5
1991	2.287	107.9
¹1992	2.217	109.8
¹ Up to Q3.

Financial Year	Total Unemployment Benefit Expenditure (£ millions)	Employment Department Expenditure on Help for the Unemployed (£ millions)	Output per person (index base = 1985)
1984–85	6,319	971	97.4
1985–86	6,963	1,018	100.7
1986–87	7,308	1,547	104.7
1987–88	6,647	1,567	107.2
1988–89	5,235	1,095	107.9
1989–90	4,309	¹349	107.6
1990–91	—	380	107.3
1991–92	—	²506	108.5
The figures show no consistent relationship between 1984–85 and 1989–90.
¹ Reflects reclassification of part of the expenditure aimed at helping the unemployed to the training budget under the skills and competence for work programme.
² Estimated outturn.