The failed full employability paradigm

In the post-war period through to the mid 1970s, most advanced Western nations maintained very low levels of unemployment. Governments were willing to manipulate levels of aggregate demand to ensure enough jobs were created to meet the preferences of the population. They used fiscal and monetary measures to stabilise the economy in the face of f1uctuations in private sector spending. While both private and public employment growth were relatively strong, Western economies were able to sustain full employment because they maintained a buffer of jobs that were always available and were readily accessible to the least skilled workers.