§ Mr. RedwoodTo ask the Chancellor of the Exchequer what estimate he has made of the impact on unemployment of a one per cent. increase in average earnings. [47542]
§ Mrs. Liddell[holding answer 29 June 1998]: The impact on unemployment would depend on why wages increased, and how employers, employees and others in the labour force responded to the increase in wages. For example, an increase in wages reflecting higher productivity need not have any effect on unemployment.