Few people do not understand that unemployment is a great harm to all who are faced with it, as well as to society as a whole. In contrast, full employment is a blessing when everyone who is able to work finds a job, receives a salary and provides for his living needs. It would seem that it might be simpler than unemployment versus full employment. Provide the government with jobs, and the unemployed will immediately disappear. However, at the present stage of development of society, such an idyll was achieved only two times, both during the period of world wars and a short time after them.
Full-time statewide
In macroeconomics, that is, for any country as a whole, full employment is such a stage in its development when absolutely everything is used economic resources and rabsila including, that is, unemployment as such does not exist. All powers are striving for this, but economists say that it is impossible to achieve such indicators, because in any society there will always be different prerequisites for the presence of a certain number of unemployed. A continuation of this thought is the assertion that with full employment there should always be a natural rate of unemployment, with a decrease in which inflation occurs. How much is this norm? No one gives exact figures, but there are opinions that full employment occurs at a level of unemployment at which there is no wage inflation or no price inflation.
What prevents full employment
Modern society is developing in such a way that it is inconceivable to avoid structural or technological changes in the economy (progress cannot be stopped). Moreover, for dozens of reasons, the old forms of production are destroyed faster than new ones appear in sufficient quantities. This gives rise to structural or technological unemployment. The human factor that influences the fact that there are always people who are forced to voluntarily leave their jobs, for example, in connection with moving to a residence in another region or with any cardinal changes in one's personal life, cannot be discounted. It gives birth frictional unemployment. And so on. Therefore, most economists are inclined to the assertion that the concept of full employment for society as a whole means reaching a level in the economy when there are no reasons causing low demand for labor.
Full time for structural units
In microeconomics, that is, for any enterprise, regardless of its size and the industry to which it relates, full employment is the absence of free vacancies while maximizing the use of all its resources and achieving a consistently high profit. From these positions, full employment can not only be achieved, but also achieved at many enterprises, thanks to skillful leadership and planning. Moreover, in the industry as a whole or in the region where such an enterprise is located, there can be a rather significant number of people who do not have work and want to get it. Figuratively speaking, in a large sea of unemployment, small islands of full employment may very well exist without affecting the parameters of this sea.
Full time for the subject
From the standpoint of each specific person, full employment is his participation in the labor process at his workplace, the time specified by the labor contract (full day, month, year), and for the invested work, the employee must receive a payment that satisfies his life needs. At first glance, it seems that everything is clear with this interpretation, but here there are some nuances associated with the essence of the concept of “employment”. In a general sense, it means that the individual participates in the labor process without violating the laws and getting paid for his labor.In addition to full, employment is part-time, permanent, temporary, partial, conditional, distance, irregular, secondary and shadow. Each of these types makes adjustments to full employment and affects fluctuations in unemployment.
Underemployment
This term is synonymous with incomplete working day and means a person has a workplace, but participation in the labor process is less time than that indicated in the employment contract. As a rule, part-time work is said to be when an employee has less than 5-15 working hours per week. In the world there is a steady growth trend of such a model of labor activity. The reasons for this are different, but in any case, full and underemployment should provide workers with equal rights recorded in the labor code. What could cause a decrease in the number of hours worked? On the one hand, workers themselves prefer to have an abbreviated schedule in order to be in time to study, family, and part-time. In such cases, underemployment is called voluntary. On the other hand, entrepreneurs can force their employees to work part-time or for a week, because the company has an unfavorable economic situation. In such cases, underemployment is called forced. A small number of working hours significantly reduces wages and lowers living standards, but despite this, while an employee is officially registered as a worker, he cannot get unemployed status and material assistance from the state.
Conditional employment, or unpredictability of precarization
The term “precarization” means “doubtfulness”, “without guarantee”, “instability”. Its essence is that the employer accepts an employee, provides him with a workplace, stipulates a salary, but the employment contract is only drawn up for a strictly limited period, or the employee’s labor activity is planned by contract, by call, by leasing (hiring through an agency without guarantees), by outstaffing (employees are registered in one organization, and perform work for another). In all these cases, even though a full-time, full-time employee is provided with an employee, at any time his labor activity may be terminated. In this case, the employer bears practically no responsibility for his “precariate”, and for workers such full employment is very conditional.
Permanent employment
This concept means guaranteed participation in the labor process for a very long time, for example, until retirement. At the same time, a full-time employee may be replaced for some time by a part-time (without loss of rights and benefits stipulated by the employment contract). Also, permanent employment does not exclude the promotion of an employee in the ranks, the change of profession (within one enterprise), or the transition from one workshop to another. This type of employment (full employment) is considered the most prosperous. It guarantees workers remuneration, paid leave, medical insurance, allowances for long service, for overtime work. This type of employment allows the company to reduce staff turnover, to have employees who are constantly improving their skills, and therefore the quality of their products.
Secondary employment
This concept means part-time work for those who have a main job, as well as additional income for pensioners, students, housewives. In the post-Soviet state, secondary employment became unusually popular during the period of perestroika, when disasters of a collapsing economy shook society, people were not paid wages, and material remuneration did not keep pace with the rampant price increase.In this case, full-time employment implies part-time employment at the main workplace (where the person is officially registered) plus secondary, that is, part-time work. In total, a person accumulates a sufficient number of hours and receives an acceptable salary. Now in this mode, millions of Russian citizens are working. There are even centers in the country to help find a second job. Among the professions offered there, the most popular:
- loader;
- cleaner;
- sticking flyers;
- courier;
- babysitter (childcare by the hour);
- merchandiser;
- promoter;
- cashier.
For many, participation in the additional labor process helps significantly improve their financial situation. However, for young people this way of working is not particularly good in the sense that it does not reveal the creative potential, does not help to acquire and improve professional skills.
Part-time employment
This concept has much in common with underemployment, but there are some differences. Currently, there are several interpretations of part-time employment:
- This is the work of citizens in positions whose level is lower than their professional qualities and abilities. One can cite such exaggerated examples: a doctor works as a nurse, a professor as a janitor, a lawyer as a janitor. And although people can work in full-time positions that do not correspond to their potential, their type of employment cannot be called “full-time” if only because they do not receive proper material compensation.
- This is a part-time forced job due to the fact that job seekers cannot find anything better.
- This is one of the aspects of hidden unemployment (long leave without maintenance, seasonal or temporary work).
Shadow employment
In the people this is called “left work”, “sabotka”. In fact, this is any labor activity, the proceeds of which pass by tax authorities. Very often, hidden from the payment of taxes by labor activity provides full employment of the employee. However, it not only does not reduce, but, on the contrary, aggravates unemployment quite significantly, as many entrepreneurs employ without registration of migrants, thereby depriving vacancies of the indigenous population.
The so-called self-employment is closely connected with shadow employment, which includes unformed duly rented housing, sale of products from their land plots, and the like.
Remote employment
This type of work is also called telework. Previously, it consisted in the fact that some organizations sent kits of parts by mail to those wishing to improve their financial situation, from which it was required to assemble fountain pens, glue envelopes and the like. With the advent of computers, distance work has gained hundreds of varieties and grandiose proportions. To date, remote full-time employment involves the individual dedicating so much time to work as a result of receiving the expected remuneration for his work, which can ensure material well-being. In practice, in most cases, remote employment is secondary, partial, incomplete and almost always shadow.
Theories of full employment in macroeconomics
As we see, not always full employment means the individual has a workplace where he works full time. That is, a person can be considered unemployed, although in reality he is involved in the labor process and gets paid for it. At the same time, not always having a job means full or even part-time work for an employee who is actually unemployed.
All this complicates the determination of the unemployment rate and the proper planning of the economic development of the state.In this regard, leading economists say that there is no way to “fine tune” the structure of the economy, which will ensure universal full employment and eliminate unemployment. Instead, they propose establishing fixed norms for increasing the money supply, thereby controlling inflation, which, in turn, will make it possible to maintain a natural level of unemployment. Others suggest reducing the role of trade unions, removing the framework of free competition, and reducing payments to the unemployed.
Forecasts
In the entire history of modern society, unemployment has always existed (excluding the periods of two world wars), but its growth rates either increased significantly, then fell to tolerable values, which were conditionally assumed equal to zero. This was the case in Europe in the 1950s and 1960s, and already in the 1970s the unemployment rate jumped sharply, which many economists attribute to a sharp increase in wages and prices at the same time.
One of the effective ways for full employment to be established in developed countries and unemployment to be minimized is called a reduction in wages for workers and lower prices for enterprises. The second way is called fiscal policy by states. However, doubts are expressed that even using these methods of regulation, it will be possible to return the unemployment rate to the framework of the 50-60s. The reasons for this are floating exchange rates, capital overflow, which affects foreign trade contradictions in welfare and social security.