Tuesday, November 5, 2013

Unemployment is involuntary, not structural

There is a common misconception that unemployment is structural, that is, the economy has shifted to such an extent that there is a mismatch between quantity of labor demanded and quantity of labor supplied, based on skills, prerequisites, etc. Unemployment, which has been growing over time in the US, is mostly involuntary, that is, as a result of lack of full employment economic policy and insufficient effective demand, workers are unable to find work at living wages, even if they are actively seeking.


1 comment:

  1. It is indeed time for people to wake up and stop denying the existence of involuntary unemployment.

    ReplyDelete

Surplus approach, Historical Materialism, and precapitalist economies:

New Paper by Sergio Cesaratto on a topic closely related to what he has discussed here before. From the abstract: In the classical economis...