Labor Supply Concepts: The Political Economy of Conceptual Change

Abstract

Disputes over the true volume ofunemployment are much more than scientific discussions among experts. Concepts and statistical data regarding employment, unem ployment and employability reflect the conflicting and chang ing orientations, needs and purposes of competing groups and interests. From earliest pre-statistical concerns with the dynamics of the entire population as the source of labor supply, attention shifted to the gainfully occupied concept, which reflected concern with specialization and the occupa tional needs of a developing industrial economy. Recurring cycles of boom and bust, and the dominance of a mass depression with unemployment as the critical problem, resulted in the introduction of the labor force concept which reflected a job scarcity, rationing orientation in its approach to defining unemployment and full employment. The current labor force approach understates the dimensions of un employment by omitting millions of persons who, though not actively seeking employment, wish to work and would be seeking jobs if adequate opportunities and conditions existed. Current attempts to develop new approaches to labor supply reflect the continuing struggle of different groups for greater equality and justice. A consideration of the real dimensions of labor supply is necessary as part of a genuine full employment strategy which attempts to respond to the needs of people who, while not officially unemployed, nevertheless very much desire and are capable of work.