There is not necessarily any contradiction. Full employment does not mean every single person in economy is employed. Full employment is (Worswick; 1987) : Full employment does not mean zero unemployment. There can be dislocations where large numbers of workers are displaced from their present employment, and time is needed before new workplaces can be created. This can happen at the end of a war, or following some major technological change . Apart from such special cases, regular allowance must be made for frictional and seasonal unemployment. Policy would not aim, therefore, at zero but at the elimination of […]
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