Fel y nodwyd, mae niwed yn llai tebygol o ddigwydd ar adegau ac mewn mannau lle mae lefelau diweithdra’n gymharol uchel. Hefyd, o dan yr amgylchiadau hyn, mae gostwng cyflogau yn y sector cyhoeddus, sy’n arwain at lefelau gwario is, yn fwy tebygol o arwain at effeithiau canlyniadol a phobl yn colli eu swyddi. Felly, mae ymdrechion gan Lywodraeth y DU i ostwng neu rewi cyflogau yn y sector cyhoeddus yng Nghymru’n debygol o fod yn arbennig o niweidiol o dan yr amgylchiadau presennol.
As just noted, ‘crowding out’ is least likely to happen at times, and in places, where unemployment is relatively high.  These are also the circumstances in which reductions in public sector pay, leading to lower levels of spending, are most likely to result in the largest knock-on effects and an associated loss of jobs. Therefore attempts by the UK Government to engineer reductions or long term freezes in public sector pay in Wales are likely to be particularly harmful in present circumstances.