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underutilisation
noun
Alt form underutilization
Exact(12)
Well the level of underutilisation in the labour market caused by underemployment has actually fallen recently.
The way to do this is to chart a version of the "Phillips curve" by comparing the underutilisation rate with inflation: From around May 2002 to May 2007 the underutilisation rate fell without causing inflation to rise.
So what about underutilisation?
That is why the underutilisation rate (a combination of unemployment and underemployment) is also 1.5% points higher than it was in May 2004.
And we now find ourselves at a lower level of inflation than we would expect given our underutilisation rate.
"In an environment of still low interest rates and underutilisation of resources, public investment can also be brought forward to offset the drag from planned near-term fiscal tightening, while staying within the medium-term fiscal framework".
He noted: "precisely to the extent that it is successful there is an underutilisation of information".
This figure, combined with the unemployment rate, gives us the "underutilized rate" of 12.8% (I should warn you at this point there's going to be a lot of use of "underemployment", "unemployment" and "underutilisation").
But once the underutilisation rate went below 10.7%, inflation began to increase.
Then the GFC hit, inflation fell and underutilisation rose.
The statement referred to solid gains in the unemployment rate, without trying to downplay them, and noted a gradually diminishing underutilisation of labour resources, instead of pointing out the existence of considerable slack".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com