4 ms·
> Too many people employed means that people who would otherwise be doing something like training or hobbies or retired are dragged into working for some reason
by willsmith72 4y ago
> Too many people employed means that people who would otherwise be doing something like training or hobbies or retired are dragged into working for some reason
Is this right? I'm sure I was taught the labour force figure used in calculating unemployment figures doesn't include people like this
- jfengel 4y agoYou're correct, and I got ahead of myself. I got it right(er) in a sub-comment later. Economists expect a certain number of people to be looking for jobs and not finding them because they don't match what their local market needs. It's friction. If the rate dips too low, it suggests that employers are digging too deeply to find anybody, probably by raising salaries, and risks unbalancing the rest of the economy.