§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer what has been the change in real exchange rates measured in terms of relative unit prices since the second half of 1973; and to what extent this affected the demand for, and supply of, skilled labour.
§ Mr. NelsonI refer the hon. Member to the answer I gave him on 21 March 1994,Official Report, column 15, which provides references to exchange rate and price data, which can be used to calculate the information requested.
The real exchange rate is only one factor affecting the demand for, and supply of, skilled labour. It is difficult to isolate the effect of changes in the real exchange rate from that of other factors, such as the impact of structural reform of the labour market.