Since Britain joined the European Community in 1973 the share of her trade with the rest of the Community has risen from around one third to over one half, with imports rising rather more than exports, partly because of the increase in EC membership, and partly because of the rise of the United Kingdom share with individual members. During the remainder of the 1970s, employment edged upward, but so did unemployment. In the recession employment fell by two million and unemployment rose by almost as much. In 1989, employees in employment were still below 1973, though if the self-employed are added in, the total surpassed the previous peak. But unemployment was still nearly a million more than in 1973. On the face of it, it would seem easier to mount an argument that joining the European Community had been bad for jobs than that it had been good. But, in truth, so many other things were going on that one doubts whether any more definite statement can be made. In any case, it is the future which concerns us. Of the many possible influences on British employment, we shall look at only two policy areas: the development of the European Monetary System, and the single market to be completed by 1992.

THE EUROPEAN MONETARY SYSTEM

The European Monetary System was set up in 1979 with the object of limiting the extent to which the currencies of the participating countries fluctuated against one another.