Australia reconsiders 'full employment' in white paper

The news: The Australian government will consider a broader definition of full employment and will target workforce underutilisation, according to an employment white paper released on Monday. The plan also includes increasing internships in net-zero, care and digitisation, extending the ability for pensioners to continue working and extending benefits for welfare recipients returning to work.

The numbers: While roughly 541,000 Australians are technically unemployed — meaning they want to work, have been looking for work and are able to start — a further 1.3 million want to work but don't meet one or more of the other criteria. Australia's unemployment rate was 3.7% in August and annual inflation was at 6% in the June quarter, significantly higher than the RBA's 2%-3% target range.

The context: Australia's labour market is considered tight, and low unemployment has kept households resilient against higher borrowing costs and cost of living pressures. However, resilient economies tend to be associated with stickier inflation.

What they said: "(The white paper) provides the roadmap for Australia to build a bigger, better-trained and more productive workforce — to boost incomes and living standards and create more opportunities for Australians to participate to their full potential,” Treasurer Jim Chalmers said in a statement.