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.


IMF Programs: Past and Present

A roundtable with Daniela Gabor, Roberto Lampa and Pablo Bortz, on the IMF and its Programs this Thursday in Buenos Aires, organized by ...