The economic objectives of the people’s republic of Nigeria shall be as follows:
3.Introduction of national minimum wage compatible with a national minimum standard of living.
4.Elimination of discrimination between categories of employees; that is to say, all persons employed in the public and private sectors, whatever their categories, should be on a full-time and permanent basis, and should be entitled to pension on the same basis under a comprehensive and compulsory social insurance scheme.
Commentary
Like on many other issues, including even the definition of the word ECONOMICS itself, there is no unanimity among economists as to the meaning or definition of FULL EMPLOYMENT. But there are two authoritative definitions by Keynes and Beveridge which can be used to guid
e our thoughts on this subject.
Keynes defines involuntary unemployment as follows:
‘Men are involuntarily unemployed if, in the event of a small rise in the price of wage-goods relatively to the money-wage, both the aggregate supply of labour willing to work for the current money wage and the aggregate demand for it at that wage would be greater than the existing volume of employment.’ (The General Theory of Employment, Interest and Money-p. 15).
In other words, according to Keynes, full employment exists when there is no involuntary unemployment, even though there may be frictional and voluntary unemployment. (Ibid p. 16).
On the other hand, Beveridge is of the opinion that full employment exists when there are ‘more vacant jobs than unemployed men.’ (Full Employment III A Free Society-po 19).
He, like Keynes, admits the compatibility of full employment with frictional, seasonal, and structural unemployment. But he hastens to emphasise that’ full employment, in any real sense, means that unemployment” in the individual case need not last for a length of time exceeding that which can be covered by unemployment insurance without risk of demoralisation.’ (Ibid p. 20).
Some critics have described the situation in which there are’ more vacant jobs than unemployed men’ as a state of’ over-full ‘ employment. They think’ that the ideal state of full employment is one in which the number of unfilled vacancies is exactly equal to the number of people who are out of work. This state of exact and permanent identity between vacancies and unemployed persons will be difficult, if not impossible, to maintain in a dynamic economy.
Because of changes in the weather, we know that in industries like agriculture, fishery, building, and road-construction, there is always an alternation between peak and slack seasons, with an inevitable fall from one to the other in the number of people employed. In a dynamic society, changes in the structure of the economy, due to various factors, are constantly taking place: old factories are now and again being pulled down in order that new and more modern ones may be erected in their places. Decrease in demand due to change in taste may necessitate closure of some factories and hence the retrenchment of
CONTINUES NEXT WEEK
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