Canada

I don't have percentage number. I do however have an ideal percentage unemployment - really fucking low - as that gives workers some bargaining power to get higher wages and better working conditions. And for me the government should play a role of an employer to regulate the labour market, like it has done in the pre-neoliberal era. Removing workers from well paid jobs during 6.5% unemployment adds more people to the unemployed pool, competing for the same private sector jobs, lowering wages for everyone. This is what the layoff part of the austerity measure does. It lowers wages across the board. In other words it favours the interest of business owners, by having them pay lower wages and therefore collecting higher profits.

If on the other hand the private sector is short on workers and need these people, I think firms should up their wages to attract them.