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Labour: after identifying labour supply, a measure of `equilibrium' unemployment rate, the so-called NAWRU (non-accelerating wage rate of unemployment), is used to estimate the sustainable level of employment. NAWRU is estimated with a statistical technique;
NAIRU is the level of unemployment necessary to prevent inflation. NAWRU is the level of unemployment necessary to prevent wage increases. Of course that is largely how NAIRU has been treated anyway, this just cuts down one step of obfuscation and spells it right out: the unemployment is there intentionally to prevent those employed daring to ask for a raise. Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se
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