Government will redefine 'full employment' to reflect a modern labour market | ABC News

In its Employment White Paper, released on Monday, it says the current definition of full employment is too narrow.

It says policymakers need to acknowledge the reality of underemployment and under-utilisation in the economy, and the impact they have had on communities across the country.

In its paper, the government says it plans to use the policy tools available to remove barriers to work, to help Australians acquire the skills they need, and to ensure people have secure jobs that are fairly paid.

It says that will help to drive down structural unemployment, and help the economy sustain much lower levels of labour market under-utilisation over time, helping the Reserve Bank to sustain much lower levels of unemployment.

RBA governor Michele Bullock has endorsed the government's new definition.

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