“Full employment never meant zero unemployment,” says Christopher Pissarides, professor of economics at the London School of Economics.
Philip Hammond said there was ‘no unemployment’….naturally, with 1.4 million people without jobs, the usual suspects jumped all over him in politically motivated attacks….
Philip Hammond says there are ‘no unemployed people’
Speaking to Andrew Marr, the chancellor says “there are no unemployed people”, when asked about the threat to jobs posed by new technology.
Asked to clarify, he said the government had not forgotten the 1.4m unemployed in the UK, saying people were finding work “at a remarkable rate”.
Opposition parties have seized on the remarks, calling him “out of touch”.
Hammond, or ‘Spreadsheet Phil’ as he is also known, is a dry technocrat who allegedly lives and breathes figures [though seemingly unable to master the detail of his brief….hence ‘white van man’ and NI debacle]…..when he says ‘No unemployment’ he didn’t mean there are no unemployed people, he meant there was full employment, a technical term which he clearly made a hash of explaining…. he should have expected the reaction he got…but perhaps might have expected better from the BBC who frequently state that there is a natural level of unemployment in any economy that is more to do with churn than actual inability to get jobs….and here is the BBC telling us that itself.….
“Full employment never meant zero unemployment,” says Christopher Pissarides, professor of economics at the London School of Economics.
Instead there is what the free market economist Milton Friedman termed a “natural rate” of unemployment, where nobody stays out of work for long, unemployment fluctuates between 5% and 6% with jobless workers quickly being hired in growth sectors of the economy.
‘No unemployment’ was a clumsy way of saying ‘full employment’
And here is the BBC again as Osborne proclaimed he was aiming for ‘full employment’ in the economy…
There are a number of different definitions of full employment:
Sir William Beveridge, the architect of the welfare state, thought it should be when 3% of the workforce is unemployed
Other economists have spoken of a higher “natural rate” of unemployment, where nobody stays out of work for long, with joblessness fluctuating at between 5% and 6%
The increase prompted some economists to suggest that wages may finally be responding to an economy which is closing in on full employment.
Hammond made a stupid verbal mistake on the theme of Boris. Why is it conservative politicians are so busy putting more fuel of the albeeb fight to burn the government and let comrade Corbyn in ?
All people hear is what they say. No amount of interpretation reduces that harm
At least on a Monday a bit of good news Manson dead and The Haus Frau might be losing the 4 th Reich after all
“Hammond, or ‘Spreadsheet Phil’ as he is also known, is a dry technocrat who allegedly lives”
I’m in two minds about that claim!
I simply can’t believe that this guy is majoring on “Future projects” instead of investing in nurses, Police, military – NOW!
Electric cars being his main priority – what an insult to the nurses and military! These cars will be decades in their making while the NHS and MoD are tearing their hair out in complete dismay for money NOW!!
I fear for our armed forces! I really do!
Ves – I am against big militaries because they cost too much . However a country must be able to defend itself around the world and at home – like our skies and waters – as well as being able to wage technical war on enemies – cyber – drones – that sort of thing . So the balance needs to be struck and as you say it’s being degraded at the moment and must be viable with the rights numbers, kit and training – whatever the cost – redefine the give away overseas £13 billion into the defence budget .
You’ll never hear that on al beeb
Couldn’t have said it better myself!
At least the cabinet realises that the 2% armed forces budget needs increasing. We will see.