A question for those with knowledge about the economy and love to waste their own time---

[digonswine]

What should the rate of unemployment be? A nice easy one, I'm sure. It seems to me that high employment is a result of growth in population and demand.
If the US was alone in the world and produced only for itself-AND-the population was stable and not increasing, in this day and age, what could we expect about employment rates? It seems like some folks think that if everything was just right, that there would be jobs for all those who could perform them. But even in this perfect world, there would have to be those without jobs-is this wrong? So. . . if even the world population stabilized, and at the current level of mechanization, is there a way to estimate employment rates just to sustain? I think about this stuff fully realizing it is hypothetical and impossible to answer. I guess I need more hobbies.

[nadinbrzezinski]

1. Oh my... first thing to undersatnd is that FULL EMPLOYMENT

is not 100% employed, but anywhere from 1.5- 3% unemployment.

In other words yes, there will be a job for all who want one.

As to the level of mechanization etcetera, what we are entering is an age of HYPER-SPECIALIZATION... which is actually part of the problem.

But if you are really serious about this subject there are good books on macro economic theory, which is what you are asking... Suffice it to say, we also need to stimulate DEMAND and to do that, we need people employed... it is a chicken-egg problem.

[digonswine]

4. It seems to me-that there is a limit to demand-

in a population where the growth of the same is static. As everything levels out, hyper-specialization would be required. This has been a selling point for higher learning for some time(I think). Where, in a stable society, does demand stabilize requiring a set number of people to be employed? How is demand stimulated in a zero growth environment?

[mmonk]

2. The high unemployment is due to lack of jobs (sent overseas).

Any rise in population should be relative. More demand means more products sold thus more demand to hire workers. A recent study predicted 70% of profits of the S&P 500 will come from foreign sources in the next 5 years. We currently have low demand because of high unemployment and falling wages.

[digonswine]

5. At some point,hopefully, population will not rise-

but continue to fluctuate around a general total population. Developing nations should experience growth. At some point, wages throughout the world should stabilize in comparison to other countries. Is there a model that describes what happens then?

[HereSince1628]

3. Back in the 70's as the baby-boom emerged from college

people were saying we should expect that unemployment of ~5% would be normal.

I think that technological advances and the unwillingness of employers to train employees has created the need for people who pay for their own technical training. This has often led to surpluses of persons with expensive, specialized training.
Consequently, the unemployment numbers have floated upwards...

I think everyone would rejoice if the unemployment rate fell to 6%-7%.