Comments by "Curious Crow" (@CuriousCrow-mp4cx) on "10 Facts About Immigration in the UK" video.
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Do you know the definition of "full" employment?
If you think that it is 100%, you'd be wrong. Why? Because a) people change jobs all the time, and this churn in the labour market, means employment is volatile; and b) it is believed that a "tight" labour market - one where there is actually close to full employment increases the risk of Inflation climbing because of a Wage-Price Spiral. This is where the demand for workers outstrips supply, so employers are forced to increase wages to attract staff, by increasing prices. And inflation needs to be kept low, right?
Well, right now, the Unemployment Rate in the UK is only 4.6%. Basically, we have virtually full employment already. And wages are still growing, albeit much, much slower than before. How come? Well, after the 2008 recession hit, the DWP published in December 2009, a paper entitled "Building Britain’s Recovery: Achieving Full Employment". In that paper, Yvette Cooper, then Minister for Work and Pensions, stated:
"This White Paper reiterates our ambition for full employment that eight out of every ten people of working age should be in employment."
That's 80%, which was enough after the greatest recession in history. When the unemployment rate was 7.8%
So... What's going in here?
As for economically inactive people, that includes people who've retired from work before the State Retirement Age, students, stay at home wives of working people, and the independently wealthy, who don't need to work. It also includes people who are off sick on NHS waiting lists of several years in length.
So what's going on here?
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