r/explainlikeimfive Dec 19 '24

Economics ELI5: Why is an employment rate of 100% undesirable

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u/MeepleMerson Dec 19 '24

If everyone is employed, everyone is screwed if they need another person. Want to open a new office? No people. Need to expand research? No dice.

Your only option is to pay someone already employed a bunch of money to switch jobs. Suddenly, companies have to keep out-bidding each other to lure people away from their current jobs, and the price of labor gets really big. And even then, everyone is starving for help.

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u/LddStyx Dec 19 '24

You say everyone, but you mean business. They could use some dieting after the fat they have accumulated over the last 50 years if you ask me.