George Osborne gave a speech today in which he gave a commitment to achieving ‘full employment’. The trouble is, full employment means different things to different people. Osborne seems to think it means having the highest employment rate in the G7. We’re already 4th on that measure (which is I guess why he chose it), but is this a good measure? It looks at the proportion who are employed, but to know if we have ‘full employment’, don’t we need to know how many are ‘unemployed’?

Chris Giles already has a blog up today with the same name as this one, and he gives two other definitions to the one George Osborne is using. Post-war, full employment just meant everyone had a job who wanted one. For most of the 50s and 60s, this was indeed the case. As Robert Skidelsky says here:

“Between 1950 and 1973 unemployment averaged…

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