Ms Anne Kavanagh:

On the concept of full employment, we constantly hear the classic economist definition of full employment, which is 4% unemployment comprising 2% frictional and 2% structural. That is not what we have had in areas of severe disadvantage in this country for many years. We have inter-generational entrenched unemployment in particular areas and among particular groups of people. There is a real danger in accepting that classic economist definition of full employment that we assume that everything is fine once we are near 4%. That is something we must constantly keep in mind in our analysis.