Vol. 395 No. 9
56 Mr. J. Higgins asked the Minister for Labour his views on whether large scale unemployment has led to a regime of extremely low wages, particularly for young people who are being exploited by predatory employers; and if he will make a statement on the matter.
Pay is an important element in the price of labour and will obviously be affected by demand and supply factors. Unemployment levels, therefore, undoubtedly affect pay but it is difficult to establish the exact relationship as many other factors are involved such as skill levels and the type of labour in demand. Low pay tends to be associated mainly with certain occupational categories, particular sectors of industry and services and certain characteristics of the individuals concerned rather than with overall employment levels.
Recent studies of low pay suggest that the bulk of low paid full-time workers are in the categories of unskilled and semiskilled manual workers, the lower grades in clerical and office employment and general indoor sales staff. Age, length of service and work experience have a major influence on the level of earnings and the sectors referred to are normally associated with high levels of labour turnover. The studies also suggest that there is a link between low pay and employment patterns, particularly part-time working, and that this in turn affects mainly women, school leavers and older workers.
