While politicians continually want to claim that their nations or areas of responsibility are ‘close to full employment’ the data rarely bears out that assessment.
And think of it this way – the mainstream economists like to tell us that full employment occurs when inflation is stable.
In June 2022, the EU27 inflation rate was 9.6 per cent.
In June 2023, it had steadily fallen to 6.4 per cent.
What that means – if we apply the mainstream logic is that the unemployment rate between those dates was above their measure of full employment.
Inflation is expected to continue to decline in the coming months.
So the mainstream concept of a ‘full employment’ unemployment rate must be below the current official unemployment rate.