How much unemployment does society need?
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Re: How much unemployment does society need?What the does that mean? Wages being reasonable?(Original post by perfectsymbology)
In order to keep wages reasonable there needs to be some unemployment in society. What is a reasonable level for a developed country like the UK?
Wages are always too low as far as I am concerned. -
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Re: How much unemployment does society need?If mean what level of unemployment bids down wages just enough to maintain stable, low inflation - its about 5% by most estimates, but given such high, persistent unemployment right now, its unlikely that the longer-term unemployed are really proper substitutes for the working, so one would argue this figure could be closer to 6 or 7% for the immediate post-crisis period.
Right now the OBR say its about 5%. -
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Re: How much unemployment does society need?why are wages too low?! LIBERALISM!!(Original post by Classical Liberal)
What the does that mean? Wages being reasonable?
Wages are always too low as far as I am concerned. -
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Re: How much unemployment does society need?I don't know about an exact figure as I've never formally studied economics, but I've always thought a bit of unemployment is a good thing. Afterall, there is reduced incentive to work productively if there is little competition for jobs.
