NEWS RELEASE Sunday 14 March 2004
STUC calls for the Chancellor to take action on productivity and jobs
Despite recent signs of improvement in the performance of the Scottish economy, including more encouraging growth rates, productivity here remains low in comparison to other parts of the UK and the UK in turn continues to have low productivity in relation to all its main competitors.
In the run up to the 2004 Budget the STUC is calling on the Chancellor to take action on productivity.
The need to address low productivity was not lost on Gordon Brown when he presented his pre-budget report last November. But the STUC was disappointed that the Chancellor's main response appeared to focus on reducing regulation and the creation of a `flexible' economy. A more imaginative approach is needed and there are lesson to be learned from our European counterparts when it comes to policies to boost productivity.
The STUC's budget submission acknowledges the UK government's success in achieving record levels of employment, but raises concerns about the economic and social effects of the persistent high levels of economic inactivity in Scotland. These effects are likely to become increasingly severe in the context of our declining and ageing population. An ageing workforce will bring lower GDP and productivity growth, increased public spending demand (particularly pensions and health) and labour market shortages.
The STUC is calling for more action to improving the rate of economic activity and labour market participation.
Commenting in advance of the 2004 budget Bill Speirs, STUC General Secretary said:
"The STUC strongly encourages the Chancellor to examine Europe for inspiration in encouraging higher productivity. France, Germany, Belgium and some other European countries have higher GDP per person per hour productivity rates than both the UK and the US. The message is clear: there is more than one way to create a productive economy".
"Any rigorous analysis of low UK productivity must also consider whether the causes are to be found in low or ineffective regulation, low pay and low valuation of a disposable workforce".
Tel: 0141 337 8100 / Fax: 0141 337 8101 www.stuc.org.uk
"The important role an organised workforce can play in increasing productivity is not recognised in the pre-budget report. Workplace partnership increases productivity and competitiveness and is especially effective in enabling organisations to manage change efficiently. The Chancellor must recognise this and introduce measures which encourage and support this approach".
"The Chancellor must also seek to ensure that the New Deal effectively addresses the problem of getting people back to work in areas of entrenched long-term unemployment and economic inactivity."
ENDS
For further details contact:
David Moxham