After the sharp recession, there is little sense of a booming recovery | Greg Jericho

After the sharp recession, there is little sense of a booming recovery | Greg Jericho

The Guardian

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Without government grappling with the toll underemployment takes on the economy, growth and recovery will remain mediocre

Slowly the Reserve Bank and the Treasury have realised that the old rules that seemed to work during the 1990s and mining boom no longer do, but will next week’s budget reflect this?

Last week the Treasury department caught up with the real world and realised that wages growth is weak and underemployment is high and as result what we call “full employment” – or more technically the “non-accelerating inflation rate of unemployment “ (Nairu) – is lower than it used to be.

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