Re:Fed signals higher unemployment rate might be necessary t...
by sky-kedge0749 on Monday June 13, 2022 @08:44PM
(#31733497)
Zero unemployment causes wages to go up fast as employers must constantly outbid each other for workers. This is bad in a theoretically efficient market because each employer is already running at maximum efficiency and every job is necessary, so there's no slack in the system. In the real world with super high executive pay, massive inefficiency, and massive employment of exploited, underpaid immigrant labor, it's less of a problem.
Re:Fed signals higher unemployment rate might be necessary t...
by kqr on Monday June 13, 2022 @12:11PM
(#31727493)
> If the unemployment rate is zero, that also means that there are jobs that literally cannot be filled and are not being done. That's bad too.
Well... I'd argue that depends on which jobs it is that goes unfilled. I'm sure many people here have worked jobs that would be better off not done.
Yes.
The ideal amount of unemployment isn't zero. People quit jobs and move to new cities (sometimes following their spouse who gets a new job) and then look for work there. People upgrade their skills. There are a lot of reasons people might temporarily be unemployed. If they don't have the freedom to do those things, that's bad.
If the unemployment rate is zero, that also means that there are jobs that literally cannot be filled and are not being done. That's bad too.
Obviously, an unemployment rate of 20% is also bad.