§ Mr. RedwoodTo ask the Chancellor of the Exchequer, pursuant to his answer of 23 March 1999,Official Report, column 205, on employment, what is the impact on employment of a 1 per cent. increase in employment costs stemming from Government legislative requirements, unmatched by productivity changes. [79915]
§ Ms HewittThe Government have introduced a comprehensive set of policies aimed at promoting employment and incentives to work. Government legislative requirements have been designed with these aims in mind and, taken together, are not expected to raise employment costs.
§ Mr. RedwoodTo ask the Chancellor of the Exchequer, pursuant to his answer of 23 March 1999,Official Report, column 205, on employment, if he will estimate the impact of a 1 per cent. increase in wages on employment levels from supply side pressures, where there is no compensatory increase in productivity. [79914]
§ Ms HewittReductions in labour supply would tend to be associated with higher wage rates and lower employment. In contrast, Government policies are aimed at increasing labour supply and employment by promoting work incentives.