Employment definition

The job, like any other circumstances in the economy, is subject to the laws of supply and demand. However, these are with some difference in regard to this context. In effect, from a logic of supply and demand, the possibility of the existence of unemployed would cause wages to go down and those who could enter the labor market. However, according to Keynes, a balance of supply and demand in terms of employment was possible, without implying a full use of the labor factor. That is why the recommendations of this economist aimed at increasing public spending to promote aggregate demand and avoid unemployment. It is important to note in this regard the main problem of the economy to solve is unemployment, after which it would be easier to face the others.

At present, a continuous replacement of labor by capital goods can be observed in the production of manufactures. That is why the employment map is continually redesigned, with the service sector now comprising a greater number of employees. Given the continuous development of technology, it is to be expected that this trend will not be reversed in the future. This can lead to problems of unemployment in some cases, such as those experienced in Europe in the second decade of the 21st century, problems that still need to be understood accurately to give the right answers.