Zero unemployment is not feasible. Unemployment, or employment, can be seen as an inverse, or countercyclical relationship, to demand of employees. That is, the supply of unemployed workers has an inverse relationship to the demand of employed workers.
In economic theory, there is a point at which supply and demand reach an equilibrium. This point is above zero. That is, there is a point at which all unemployed workers in the market meet the current...
Zero unemployment is not feasible. Unemployment, or employment, can be seen as an inverse, or countercyclical relationship, to demand of employees. That is, the supply of unemployed workers has an inverse relationship to the demand of employed workers.
In economic theory, there is a point at which supply and demand reach an equilibrium. This point is above zero. That is, there is a point at which all unemployed workers in the market meet the current demand for employees in the market. Nevertheless, this would not create zero unemployment.
In order for zero unemployment to exist, all employable workers must meet all of the skills and all of the demands of the open positions in the market. Likewise, all of the open positions must meet the skills and salary requirements of all employable workers (or those seeking employment). To create such a balance in the market would be nearly impossible. Some level of unemployment must exist in order to ensure that available employed workers are able to fulfill open positions. By doing so, organizations will be able to monitor productivity and adjust productivity accordingly.
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