Background
The term “unemployable” refers to individuals who find it difficult or impossible to secure employment. This situation can stem from various factors like skills, attitudes, or behavior that make the individual less desirable to potential employers.
Historical Context
The concept of unemployability has fluctuated in significance over time, influenced heavily by the prevailing economic conditions, labor market formalities, and the evolution of industrial and technological needs. In different eras, the characteristics deemed critical for employability have also varied, shifting with changes in technology, industry demands, and societal norms.
Definitions and Concepts
Unemployable individuals are those considered challenging to integrate into the workforce due to constraints that are not necessarily insurmountable but impactful within specific labor market conditions. The state of being unemployable can be amended through targeted interventions such as retraining, reskilling, or changes in behavior and attitude.
Major Analytical Frameworks
Classical Economics
Classical economics would attribute unemployability to individual differences in productivity. An unemployable person might simply be less productive compared to others, leading to difficulty in securing job opportunities.
Neoclassical Economics
The neoclassical perspective would emphasize the role of skills and utility. Here, unemployable individuals lack the marginal productivity needed to justify their employment at existing wage rates.
Keynesian Economics
Keynesian economics might highlight the macroeconomic conditions that exacerbate unemployability. Factors such as insufficient aggregate demand leading to fewer employment opportunities can make specific individuals appear unemployable, even if they are capable under different circumstances.
Marxian Economics
From a Marxian viewpoint, unemployability can be seen as systemic within capitalist structures, where the surplus labor pool maintains downward pressure on wages and works to the benefit of capital owners.
Institutional Economics
This framework would examine the institutions and norms that determine the employability of an individual. Deficiencies in educational systems or discriminatory practices at workplaces might significantly contribute to making individuals unemployable.
Behavioral Economics
Behavioral economics would assert that unemployability could stem from cognitive biases or irrational behaviors within the unemployed individuals or the employers. Factors like lack of self-efficacy or misplaced risk aversion play critical roles.
Post-Keynesian Economics
Post-Keynesians may look at historical and social contexts influencing unemployability, emphasizing structural and fiscal policies that could ameliorate conditions leading to persistent unemployment issues for specific groups.
Austrian Economics
In the Austrian view, the mismatch of entrepreneurial opportunities and individual aptitudes or knowledge deficits can lead to periods where an individual is considered unemployable.
Development Economics
Development economics might address unemployability in relation to economic development stages and public policies. Factors like inadequate education systems, lack of vocational training, and limited job creation in developing economies could render individuals unemployable.
Monetarism
Monetarists might focus on the role of inflation control and monetary policy in creating an environment where employment conditions can deteriorate, subsequently influencing the perception and reality of unemployability.
Comparative Analysis
Unemployability is a multi-faceted concept influenced by individual traits, systemic factors, and macroeconomic conditions. Comparing frameworks across different economic theories helps in understanding this complexity holistically.
Case Studies
Regional Unemployment Disparities
An exploration into regions experiencing high unemployment rates where the term “unemployable” has been applied disproportionately to a segment of the population can yield insights into systemic versus individual factors.
Suggested Books for Further Studies
- “Unemployment: Macroeconomics, and Learning” by Christian A. Johnson
- “Winners and Losers in the Labor Market” by Dana J. Johnson.
- “The Dead End” by Ishmael Beah
Related Terms with Definitions
- Unemployment: The state of lacking paid occupation despite actively seeking work.
- Underemployment: A scenario where employed individuals are working fewer hours than they would prefer or are overqualified for the positions they hold.
- Labor Market: The supply and demand dynamics for labor, where employees provide the supply and employers the demand.
- Job Training: Programs aimed at enhancing the skills of individuals to improve their employability in various sectors.
- Human Capital: The economic value of a worker’s experience and skills.
