HC Deb 29 March 1994 vol 240 cc693-5W
Mr. Austin Mitchell

To ask the Secretary of State for Employment what assumption the Government make about the cost of their policy of labour flexibility for those affected: if he will list the evidence available to him about the relative costs and benefits; and if he will publish his estimate of the losses and gains and those who have lost and those who have gained.

Mr. Michael Forsyth

A more flexible and efficient labour market leads overall to more jobs and less unemployment. It is not possible to disentangle the effect of flexibility on individuals.

Mr. Austin Mitchell

To ask the Secretary of State for Employment (1) what is the objective of the Government policy of labour flexibility; and what benchmarks the Government used for judging its success;

(2) pursuant to his answer of 11 March, Official Report, column 433, concerning rewards for productivity, by what means he assesses the effectiveness of the Government's policy of labour flexibility.

Mr. Michael Forsyth

The objective of labour flexibility is to support economic growth, create jobs and reduce unemployment. Increased labour flexibility has contributed to unemployment falling earlier in the cycle than previously—a fall of 220,000 since December 1992, and to a relatively early upturn in the work force in employment—an increase of 136,000 in the nine months to December 1993.

Mr. Austin Mitchell

To ask the Secretary of State for Employment if he will publish a list of the measures which the Government include under the heading of labour flexibility; and which of these were commended to the Group of Seven.

Mr. Michael Forsyth

Flexibility requires measures to improve the efficient working of the labour market, to increase the ability of unemployed people to get jobs and compete effectively, and to encourage investment in skills by individuals and their employers. My right hon. Friend, the Secretary of State commended each of these to the G7 jobs conference, which agreed that flexible labour markets support economic growth and deliver higher employment and lower unemployment.

Mr. Austin Mitchell

To ask the Secretary of State for Employment what assessment he has made of the effect of the policy of labour flexibility on full-time adult male employment since 1979.

Mr. Michael Forsyth

No such assessment has been made. Labour market flexibility should support economic growth, reduce unemployment and increase all types of jobs.

Mr. Austin Mitchell

To ask the Secretary of State for Employment what is the minimum rate of unemployed required to sustain the Government's policy of labour flexibility.

Mr. Michael Forsyth

There is no minimum rate required to sustain labour market flexibility. The aim of labour market flexibility is to support economic growth, create jobs and reduce unemployment.

Mr. Austin Mitchell

To ask the Secretary of State for Employment what assessment he has made of the effect of the Government's policy of labour flexibility on the distribution of income; and whether it was intended to have that effect.

Mr. Michael Forsyth

The distribution of income is determined by a variety of factors including the extent of unemployment. A flexible labour market should reduce unemployment and therefore help those at the lower end of the income distribution.

Mr. Austin Mitchell

To ask the Secretary of State for Employment (1) what account the Government have taken of the extra cost to the social services in assessing the results of their policy on labour flexibility;

(2) what account the Government have taken in judging, the results of their policy of labour flexibility, of the extra cost, to law and order;

(3) what account the Government have taken of the extra cost to the health service in assessing the results of their policy on labour flexibility.

Mr. Michael Forsyth

Labour market flexibility supports economic growth, creates jobs and reduces unemployment. It does not involve extra costs to the social services, law and order or the health service.