Great Britain: The Problems of Redeployment

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Harold Wilson calls it redeployment of the labor force. Most Britons refer to it as redundancy. Whatever its euphemism, Wilson's tough plan to force British industries to modernize or die is beginning to be felt. The Labor Ministry announced last week that unemployment had risen 28.5%—to 437,229—since the middle of September.

Since unemployment is practically nonexistent in Britain, the rise was hardly catastrophic: less than 2% of the labor force is out of work. But it seemed to bear out the predictions of Wilson's most pessimistic critics that his deflation measures would lead to a major recession in which as many as 2,000,000 workers might be idled. Another indication of hard times ahead came from the Confederation of British Industries, which reported last week that businessmen are not responding to the government's call to modernize and diversify their plants. Instead, said the C.B.I., management foresees a sharp downturn in sales, is slashing all further capital investment plans and preparing to reduce production.