After decades in which macroeconomic policy focused primarily on inflation, the announcement of a renewed commitment to full employment, made by Prime Minister Anthony Albanese in 2021, was a major step. Labour’s election campaign included not only a commitment to full employment but the promise of a Jobs Summit leading to a new White Paper on Full Employment, modelled on that of 1945.
Upon taking office, the Labor Government backed away from this commitment. The Jobs Summit was relabelled a ‘Jobs and Skills Summit’ and much of the discussion focused on supposed skills shortages. This was a misnomer. The problem faced by employers was not a shortage of particular skills but the difficulty of filling vacancies of any kind in a situation of full or near-full employment. After decades in which the number of unemployed workers routinely exceeded vacancies, employers found this situation difficult to accept.
An even more consequential change was the removal of the word ‘Full’ from the name of the proposed White Paper. The decision to break with Labor’s history on this crucial issue seemed to portend the abandonment of the entire process.