3 - OBSTACLES TO FULL EMPLOYMENT

Abstract

This chapter discusses the obstacles to full employment. There is full employment when there are more unfilled vacancies than unemployed workers. Full employment is the level of employment at which money-wage rates begin to rise. There may be large numbers of workers unemployed when full employment exists. Therefore, full employment can never be seen completely. Full employment is not completely desirable. The attainment of full employment, in the absolute sense, would require strict controls, including direction of labor. Full employment policy does not mean aiming at 100% employment, but aiming at a continuous level of employment as near to 100% as is practicable with the methods of control that are acceptable to the public. Full-employment policy requires a high degree of central control over the economic system. The process of raising wages that are too low involves raising the general level of wages and therefore, involves a rise in the cost of living. Thus, even right and necessary wage changes contain the threat of the vicious spiral.