No one is self sufficient. An employer must pay the rate for the job, an employee must 'sell' a service that is needed.
Excess demand for skills means higher wages.
Uncertainty, Lack of orders creates downturn, leads to job losses, newly unemployed spend less, leading to bigger drop in orders, leading to bigger downturn.
Volatility of capitalist system, Even if employees worked for nothing, businesses would not produce goods if there was no chance of selling them.
Firms pay wage --- wages spent on firms products --- Firm uses revenue to pay wages--- wages spent and so on and so on., Change one link and it affects the entire chain.
Low Wages contribute to unemployment they dont alleviate it, For unemployment to come down firms need to pay wages, wages are then spent, revenue then used to pay wages, wages are then spent, etc etc.
Low wages or unemployment mean workers have less money to spend, fewer goods are purchased, lower revenues are made, more workers are made unemployed, therefore there's even less money, and fewer goods purchased.
Jobs for life seen as part of the problem of the un-competitiveness of the British industry.
Inefficient producers driven out of business., Job seekers classed as inefficient is they don't take lower wages.
People with highly desired skills can demand higher wages., Competition between workers intensifies. Some workers cannot compete and this creates a bigger inequality between workers.
During the 70s and 80s there was a gradual loss of power from the wage councils in retail and catering industries. Trade Union membership numbers fell.
Gender inequality in wages. In 1993 women earned 70% of mens wages up from 55% in the late 60s. This is because of a lack of women in high paying occupations.
Men in their 20s change from having most job security, to having the highest level of insecurity.
Women in their 40s heve the highest level of job security.
Earn More Money
Perhaps buy shares