CONFIDENTIAL ##
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growth under the present agreement projected forward
to 1978 (see paragraph 2.3.1) could be as high as
24,000. Thus altogether a total of 34,000 people
could be involved, and this would represent 4.5%
of the manufacturing labour force. This number is
about 1.8% of the total labour force, implying that
the unemployment rate could be increased by nearly
two percentage points. This represents an increase
of about 35% in the average number of people
unemployed during 1976.
4.3
Also, there will certainly be secondary
effects on employment in related manufacturing and
commercial sectors (for example, weaving and export
firms).
4.4.
Increases in demand for textile and clothing
products in markets other than the EEC and increases in
demand for products in the non-textile and non-clothing
sectors would be unlikely to absorb readily the surplus
labour so generated. A large proportion of the former
would still be under restraint and, as is suggested in
section 3 above, might be influenced by the cut-back
in quota levels proposed by the EEC. The latter, a
move of labour into other manufacturing industries,
would be hampered by the need to acquire different skills.
/Furthermore
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