Global Journal of Human Social Science, E: Economics, Volume 21 Issue 4

Volume XXI Issue IV Version I 66 ( E ) Global Journal of Human Social Science - Year 2021 © 2021 Global Journals Which of these Economics Jargons - Underemployment, Overemployment, Unemployment, Rightemployment, Overqualification and Overeducation is Appropriate for an Economy? it can also be persistent during the great depression of the 1930s. Cyclical unemployment rises during economic downturns and falls when the economy improves. Keynes contends that this type of unemployment occurs due to insufficient effective demand. Demand for most goods and services falls, less production is needed; wages do not fall to meet the equilibrium level and mass unemployment results. The Keynesian framework, as examined by Thirlwal (1979), Grill and Zanalda (1995) and Hussian and Nadol (1997), postulate that increase in employment, capital stock and technological change are mainly endogenous. Thus, the growth of employment is demand determined and that the fundamental determinants of long-term growth of output also influence the growth of employment. In the Keynesian theory, employment depends upon effective demand, which results in increased output; output creates income, and income provides employment. He regards employment as a function of income. Effective demand is determined by aggregate supply and demand functions. The aggregate supply function depends on physical or technical conditions, which do not change in the short run; thus, it remains stable. Keynes concentrated on aggregate demand function to fight depression and unemployment. Thus, employment depends on aggregate demands, which are determined by consumption demand and investment demand. According to Keynes, employment can be increased by increasing consumption and or investment. Consumption depends on income C(y), and when income rises, savings rises. Consumption can be increased by raising the propensity to consume to increase income and employment, but people's psychology (taste, habit, etcetera) is also constant in the short run. Therefore, the propensity to consume is stable. Employment thus depends on investment. C. Marxian Theory It is in the very nature of the capitalist mode of production to overwork some workers while keeping the rest as a reserve army of unemployed people. Marxists also share the Keynesian view of the relationship between economic demand and employment, but with the caveat that the market system's propensity to slash wages and reduce labour participation on an enterprise- level cause a vital reduction in aggregate demand in the economy, triggering crises of unemployment and periods of low economic activity before the capital accumulation (investment) phase of economic growth can continue. According to Karl Marx, unemployment is inherent within the unstable capitalist system, and periodic mass unemployment crises are expected. The proletariat's function within the capitalist system is to provide a "reserve army of labour" that creates downward pressure on earnings which is accomplished by dividing the working class into surplus-labour (employees) and underemployment (unemployed), who form the reserve armies of labour; and they fight among themselves for rare jobs at lower wages. According to Marx, the only way to permanently eliminate unemployment would be to abolish capitalism and forced competition for wages and then shift to a socialist or communist economic system. For contemporary Marxists, persistent unemployment is proof of the inability of capitalism to ensure full employment. D. Efficiency Wage Theory Efficiency wage theory is a macro- economic approach to explaining unemployment. The rationale behind the theory is as follows; Assume that workers differ in quality, not just abilities but in the probability of shrinking; in other wor ds, some people are lazier than others and are therefore less likely to work harder. The effort is a function of costly monitoring, i.e. if you are closely monitored, then if you not. An employer cares about the cost of labour (the wage rate). However, the cost is dependent upon the productivity of the workers. So, the objective is to minimise the wage divided by productivity (wage per unit produced), and to do this, there are at least two options: Firstly, you can increase productivity by increasing wage. As wages increase, the cost shrinking becomes higher because if you are caught, you are fired and lose your wages, and the higher the wage is, the more you lose by being fired. Thus, a higher wage means that you work even harder since it is essential for you not to be fired. h) Statistical Table of Unemployment in Nigeria Table 1 Year GDP Unemp Rate 1990 499.68 3.5 1991 596.04 3.1 1992 909.8 3.5 1993 1259.07 3.4 1994 1762.81 3.2 1995 2895.2 1.9 1996 3779.13 2.8 1997 4111.64 3.4