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Camouflaged Redundancy

 Camouflaged Redundancy

            This type of redundancy is a notable aspect of under developed nations. Such redundancies are non-voluntary. People are ready to work but they are unsuccessful to find jobs due to insufficient complementary aspects. Such redundancy is seen in the village landless and small agriculturists due to the seasonal nature of farm functioning and unproductive land and tools to keep them fully employed.

            A person is termed to be camouflaged redundant, if his pay to productivity is less than what he can generate by working for normal hours each dawn to dusk. His marginal output is nil or insignificant and by withdrawing such labourers, farm productivity can be enhanced. There are also other types of redundant persons is such nations.

            A person is called underemployed if he is influenced by redundancy too take up a work that he thinks is not essential for his needs, or not appropriate with his training. Moreover, there are those who work full time in terms of hours per day but gets less remuneration to go beyond the poverty level.

            They are vendors, petty shop owners, rickshaw pullers, labourers in restaurants, general repairing shops and so on in urban regions. Open and camouflaged redundant in urban and rural regions are evaluated to around 42 – 47 percent of the worker force in underdeveloped nations.

Meaning of Full Employment

            There is no proper meaning for the term since various economists and classicists has any unanimous in their definitions. Hence let us see various views of full employment.

Classical View

            The classical economists has always assumed in the subsistence of full employment in the economy. To them full employment was a regular condition and any divergence from this was regarded as something abnormal. As per Pigou, the inclination of the fiscal system was to automatically provide full employment in the full employment in the labour market.

            Redundancy resulted from the inflexibility in the wage structure and interference in the working of free market system in the form of trade union legislation, minimum legislation etc. Full employment subsists “when everybody who at the running rate of wages wishes to be employed.”

            Those who are not ready to work at the subsisting wage rate are not redundant in the Pigovian sense for the reason that they are deliberately redundant. There is however, no feasibility of in-deliberate redundancy in the sense that people are ready to work but they do not find work.

The Keynesian View

            As per Keynes, full employment means the absence of in-deliberate redundancy. In other words, full employment is a condition in which everybody who wants job gets job.
Full employment so defined is consistent with frictional and deliberate redundancy.
Keynes presumes that ‘with a given organisation, tool, equipment and technique, real wages and the volume of productivity are uniquely associated so that commonly, an enhancement in employment can only happen to the auxiliary of a turn down in remuneration rate. To accomplish full employment, Keynes advocates augment in effective demand to bring about decline in real remuneration.
Thus the difficulty of full employment is one of maintaining sufficient effectual demand.

Other Views of Full Employment

  • As per Professor W.W.Hart, attempting to define full employment raisesmany people’s blood pressure. Rightly, so for the reason that there is hardly any economist who does not define it in his own way.

  • Lord Beveridge in his book Full Employment in a Free Society defined it as a condition where there were more unoccupied jobs than employed men so that usual lag amidst losing one job and finding another will be very short.

  • By full employment he does not mean null employment which means that full employment is not always full. There is always a specified volume of frictional redundancy in the financial system even when there is full employment.

  • He evaluated frictional redundancy of about 6% in the financial system even when there is full employment condition for England. But his pleading for more unoccupied jobs than the redundant cannot be unaccepted as the full employment level.

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