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By Edwin Whiting

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Where a scheme is already in existence, they are the figures for the current year. The figures are primarily on a cash flow basis covering the receipts and payments of the year. Taxes are assumed to be paid in the year in which they are deducted under PA YE or paid by the employee. Broadly the net cost or saving can be translated directly into an increase or decrease in the Public Sector Borrowing Requirement (PSBR). Unemployment Reduction Measures 24 There are some important unemployment reduction measures (mostly in Group B of the Contents table) that have always been regarded as the province of the employer and have not normally been considered as suitable for intervention by Governments in the UK.

The variations above are arranged in the probable order of the scale effect- the largest reduction of unemployment being put first. However, if a number of variations in the lower ranks are put together, the effect on employment could be very substantial. Research evidence on the effect of early retirement schemes on employment is scanty, especially in the UK. The House of Commons Committee asked the Department of Employment for their view on the likely replacement factor of jobs vacated by early retirees.

The administration cost of unemployment is another hidden cost, mostly incurred by the DHSS and the Unemployment Benefit Office. Although the cost of administration in some cases, such as people on supplementary benefit with constantly changing circumstances, is high, the average cost per person unemployed is insignificant. 6 Unemployment Reduction Measures SUMMARY (1) People are very different in their earning power and cost of employment, which means that, for any decisions on employment, costs need to be counted, not heads.

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