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Can unemployment be reined?

The reduction of the working hours schedule pegged to the productivity gains seems to be the only workable way to overcome the unemployment concern. The chart (index numbers, 1998=100, to allow for easier comparisons) illustrates the effects of the shortened schedule scenario applied retrospectively from 1998 through 2012, the corresponding data appearing in the table of the simplified model. The more salient features are the fast growth of employment, attached to GWP (gross world product) growth, the slowing down of working-age-neither-employed-nor-unemployed or "dropouts" growth, and the consequent undoing of unemployment, which evaporates by 2006.

The simplified model takes as given two variables: the working-age population numbers, and the GWP values...

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Chart and statistics of unemployment population, active population and total population 1998-2018. The crowds of unemployed reached 201.8 million in 2013, not including at least 25 million discouraged job seekers, and 1.9 billion working-age-neither-employed-nor-unemployed persons or 225 million more than in 2006. The alternative solution to the unemployment problem consists of redistributing the available work by reducing work schedules, without lowering pay levels, and focusing on efficiency and productivity gains instead of straight gross product growth.

 

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