Full Employment and Why it is a Major Target for Governments

1738 Words4 Pages

Full Employment and Why it is a Major Target for Governments

" Full employment" will always be the main goal of the globalization

of the world economy. All countries are desperate for moving towards

to "full employment". There is no unique definition of "Full

employment". However, the majority of economists agree that

unemployment cannot fall to zero since there are always be some

frictional unemployment caused by people moving into the labor market,

searching for work, and others switching between jobs and experiencing

short periods of time out of work. The definition of frictional

unemployment is the short-term unemployment associated with the

process of matching workers with jobs. Full employment might also be

defined as a situation where the labor market has reached the state of

equilibrium, when those in active labor force who are willing and able

to work at going wage rates are able to find work. At this point, a

remaining unemployment would essentially be frictional. Another

interpretation of full employment is when total people out of work

matches the number of unfilled job vacancies. The problem with this is

that estimates of scale of job vacancy vary considerably.

The major target for governments is to achieve economic progress and

social justice. Governments want to enable every individual to develop

their potential, whatever their background or talent. High fulfilling

jobs are central to realize this. A job is the first rung of

opportunity, without a job, people have no hope of clambering up. They

can lose self-respect. Social justice and economic progress go hand in

hand, the goal of government is "full employment" with social

inclusion, so that everyone shares in the raising prosperity of the

nation, higher employment, higher productivity leading to higher

incomes. People should have the opportunity of fulfilling, well paid

employment. Unemployment is a waste of human potential, and a source

of social exclusion, as well as a drain of economy.

Lack of employment opportunities creates the conditions for poverty,

despair and disengagement. However, "full employment" is always

Open Document