Give the Current Workers Jobs Before You Find Others

By Bill Mitchell

The persistent unemployment in Australia and the existence of skill shortages represent two-sides of the same coin - a failure of governance.

When growth is strong, this lack of governance manifests as skill shortages and reduced unemployment, whereas at other times it takes the form of very high labour underutilisation. Both manifestations reflect erroneous Federal Government policy in the form of insufficient spending as a result of their obsession with budget surpluses.

Before we search for new workers, we should first ensure the available labour resources are fully employed. There are significant benefits in achieving full employment and it should be the priority goal for the Federal Government.

(First published in the Newcastle Herald)