What we saw in the latter stages of the post-2008 recovery seems to suggest that a high-pressure economy helps re-absorb lower-skilled workers into the labour market, because it induces companies to train people themselves. [9] A tight job market also improves the outlook for future demand, thereby strengthening business investment.
2  BIS Review 47/2009  In the case of Australia and New Zealand, these economies have grown strongly for the past 10 years and inflation has been largely within the 1 to 3% target band; this has resulted in low unemployment, and a strong fiscal position. They also have good institutions.