This In Focus note examines the concept of full employment and how to measure it, in light of the latest labour market statistics released in mid-October, showing the highest employment rate recorded since comparable records began in 1971.
Measuring Full Employment (100KB PDF)
The Conservative manifesto for the 2015 general election set out the aim of achieving full employment. Clause 1 of the Welfare Reform and Work Bill, currently in committee stage in the House of Commons, would require the Secretary of State to report annually to Parliament on the progress made towards full employment, although it does not define a particular measure or target. There are a number of ways that full employment could be measured, depending on whether one is focusing on the employment rate or the unemployment rate.
The latest ONS labour market statistics released in mid-October show that for the three-month period June to August 2015, 73.6 percent of people aged from 16 to 64 were in work. This is the highest rate recorded since comparable records began in 1971.
The unemployment rate in the same three-month period was 5.4 percent, the lowest unemployment rate seen since March to May 2008, when a rate of 5.2 percent was recorded.
Measuring Full Employment (100KB PDF)
The Sovereign Grant Bill is a government bill which would amend how the sovereign grant is set. This is a grant paid to the King to support the work of the sovereign. The bill would enable the size of the sovereign grant to be reduced following the completion of a 10-year works project on Buckingham Palace. The bill received cross-party support and was not amended in the House of Commons.
The Commercial Payments Bill [HL] seeks to tackle late payments to small businesses. It would impose minimum payment periods for invoices, prohibit the use of retentions in construction contracts and provide the small business commissioner with greater powers. The bill received an unopposed second reading in the House of Lords on 9 June 2026. 30 government amendments were made to the bill at committee stage.
![Commercial Payments Bill [HL]: Progress in the Lords](https://lordslibrary-parliament.studio24.dev/content/uploads/sites/2/2020/01/Business-VIGs-568x426.jpg)
The Financial Services and Markets Bill [HL] is a wide-ranging bill that aims to reform the way the UK financial services sector is regulated. This briefing provides a summary of the bill’s second reading and committee stage in the House of Lords ahead of its further consideration at report.
![Financial Services and Markets Bill [HL]: Progress in the Lords](https://lordslibrary-parliament.studio24.dev/content/uploads/sites/2/2020/09/Economy-568x426.png)