Employer of last resort
Encyclopedia
Employers of last resort are employers in an economy
which workers go to for jobs when no other jobs are available; the term is by analogy with "lender of last resort
". The phrase is used in two sense:
The sense of a job guarantee program is used and advocated by some schools of Post-Keynesian economists
, notably Neo-Chartalists in the Kansas City School of Economics and the Australian Centre of Full Employment and Equity
, who advocate it as a solution for unemployment
.
economy, many fast-food industry jobs represent last-resort employment for many workers.
In economics
, the phrase often refers to employers which can hire workers when no other employers are hiring. Their presence may soften the negative impact on employment of downturns in the business cycle
. One example of such a program would be the Civilian Conservation Corps
, a government agency intended to provide work to young, unemployed men. Military Keynesianism
argues that the military
can act as an employer of last resort.
Economic system
An economic system is the combination of the various agencies, entities that provide the economic structure that defines the social community. These agencies are joined by lines of trade and exchange along which goods, money etc. are continuously flowing. An example of such a system for a closed...
which workers go to for jobs when no other jobs are available; the term is by analogy with "lender of last resort
Lender of last resort
A lender of last resort is an institution willing to extend credit when no one else will. The term refers especially to a reserve financial institution, most often the central bank of a country, intended to avoid bankruptcy of banks or other institutions deemed systemically important or 'too big to...
". The phrase is used in two sense:
- undesirable jobs, often private sector, which are only taken as a last resort;
- a formal government job guaranteeJob guaranteeA job guarantee is an economic policy proposal aimed at providing a sustainable solution to the dual problems of inflation and unemployment. Its aim is to create full employment and price stability...
program, where the government promises to act as employer of last resort, employing all comers.
The sense of a job guarantee program is used and advocated by some schools of Post-Keynesian economists
Post-Keynesian economics
Post Keynesian economics is a school of economic thought with its origins in The General Theory of John Maynard Keynes, although its subsequent development was influenced to a large degree by Michał Kalecki, Joan Robinson, Nicholas Kaldor and Paul Davidson...
, notably Neo-Chartalists in the Kansas City School of Economics and the Australian Centre of Full Employment and Equity
Centre of Full Employment and Equity
The Centre of Full Employment and Equity or CofFEE is an official research centre of the University of Newcastle, New South Wales, Australia, and has operated since 1998...
, who advocate it as a solution for unemployment
Unemployment
Unemployment , as defined by the International Labour Organization, occurs when people are without jobs and they have actively sought work within the past four weeks...
.
Use
Colloquially, this may refer to work which is undesirable to most people or pays poorly - for instance, in the United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
economy, many fast-food industry jobs represent last-resort employment for many workers.
In economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, the phrase often refers to employers which can hire workers when no other employers are hiring. Their presence may soften the negative impact on employment of downturns in the business cycle
Business cycle
The term business cycle refers to economy-wide fluctuations in production or economic activity over several months or years...
. One example of such a program would be the Civilian Conservation Corps
Civilian Conservation Corps
The Civilian Conservation Corps was a public work relief program that operated from 1933 to 1942 in the United States for unemployed, unmarried men from relief families, ages 18–25. A part of the New Deal of President Franklin D...
, a government agency intended to provide work to young, unemployed men. Military Keynesianism
Military Keynesianism
Military Keynesianism is the accusation that John Maynard Keynes advocated government economic policy in which the government devotes large amounts of spending to the military in an effort to increase economic growth. In fact, the English economist John Maynard Keynes advocated that government...
argues that the military
Military
A military is an organization authorized by its greater society to use lethal force, usually including use of weapons, in defending its country by combating actual or perceived threats. The military may have additional functions of use to its greater society, such as advancing a political agenda e.g...
can act as an employer of last resort.
External links
- An Introduction to the Employer of Last Resort Proposal from Dollars & SenseDollars & SenseDollars & Sense is a magazine dedicated to providing left-wing perspectives on economics.Published six times a year since 1974, it is edited by a collective of economists, journalists, and activists committed to the ideals of social justice and economic democracy.It was initially sponsored by the...
magazine - Center for Full Employment and Price Stability