Chapter Read Free Full Employment

The Concept Of Full Employment Has Been Defined Differently By Different Economists Lord Beveridge Defines Full Empldyment As Having Always More Vacant Jobs Than Men Keynes Defines Full Employment Negatively As The Absence Of Involuntary Unemployment If We Take Literary Meaning Of Full Employment It Means Complete Absence Of Unemployment Then Practically Speaking It Is Not Possible To Achieve Full Employment Some Sort Of Unemployment Is Bound To Exist In A Country For Instance There Are Some People Who Remain Unemployed For A Short Time Due To Changing Over From One Job To Another Then There Are Some People Who Are Learning A New Job And Are On Probation Getting A Very Meager Sum Or Receiving Nothing All Such Person Are Fractionally Unemployed So Long As The Number Of Fractionally Unemployed Person Does Not Exceed Three To Five Per Cent Of The Total Labour Force Then Full Employment Is Said To Exist We May If We Like Name It As High Level Of Employment It Should Be Noted That While Considering The Aggregate Labour Force Of A Country Children Old Persons Disabled Persons And The Social Drones Who Do Not Care To Work Or Who Are Not Able To Work Are Excluded From The Total Labour Force The Total Labour Force Of A Country Consists Of Only Those Persons Who Are Able And Willing To Work
We Can Thus Sum Up That For The Existence Of Full Employment All That Is Necessary Is That There Should Be At Leat As Many Unfilled Jobs As There Are Unemployed Persons And That The Normal Time Lag Between Losing One Job And Finding Another Is Short
There Are Three Main Measures By Which Full Employment Can Be Attained And Maintained In A Country They Are (1) Fiscal Policy (2) Monetary Policy And (3) Public Works
1.    Fiscal Policy: Fiscal Policy Refers To The Measures Which A Government Takes For The Management Of Its Budget It Is The Desire Of Every Government That The Budget Of A Country Is Shaped In Such A Manner That It Should Help In Slowing Down The Swings Of Business Cycle And Maintaining High Progressive Level Of Employment Without Causing Inflation In The Country So When A Government Finds That Private Investment Is Decreasing In A Country And The Income Of People Is Falling It Increases Public Expenditure In Order To Encourage Private Investment It Gives Grant Or Bounties Or Relief In Taxation To The People When Private Investment Increases Too High The Government Reduces Its Own Expenditure And Increases Taxes So That Full Employment Without Inflation Is Achieved At


2.    Monetary Measures: Monetary Policy Refers To The Measures Which A Government Takes For Regulating The Money Supply In A Country It Is Generally Associated With The Supply Of Credit And The Rate Of Interest The Government Can Encourage Investment And Maintain High Level Of Employment By Lowering The Rate Of Interest And Keeping The Supply Of Money Adequate

3, Construction of Public Works: By Public Works Is Meant The Construction Of Projects Designed For Public Welfare Or Works Carried Out By Government With The Public Funds Highways Canals Bridges Parks And Public Buildings Etc Etc Are Examples Of Public Works In The Period Of Depression Government Can Increase The Level Of Employment By Launching Public Works Programme In Case Of Over Full Employment The Expenditure On Public Works Can Be Curtailed So That The Level Of Fullattained At Without Inflation It Should Be Noted That In A Country It Is Not Simply The High Level Employment Or Full Employment Which Is The Desired Goal If A Country Achieves Full Employment Through Inflation Then Certainly Its Consequences Will Be Disastrous So What The Economy Needs Is That There Should Be High Level Of Employment But Not Accompanied By Inflation